How does a company decide on the market entry strategy?

Developing a market-entry strategy involves thorough analysis of potential competitors and possible customers. Relevant factors that must be considered when deciding the viability of entry into a particular market include trade barriers, localized knowledge, price localization, competition, and export subsidies.

What is a reason companies decide to enter the global market?

In general, companies go international because they want to grow or expand operations. The benefits of entering international markets include generating more revenue, competing for new sales, investment opportunities, diversifying, reducing costs and recruiting new talent.

What is global strategy in international business?

A global strategy involves thinking in an integrated way about all aspects of business-its suppliers, production sites, markets, and competition. It involves assessing every product or service from the perspective of both domestic and international market standards.

What are the choices available to enter into this overseas market and what is the best suited option?

There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7.25 “Market entry options”).