WHAT IS INTERNATIONAL BUSINESS? – ENTERING OVERSEAS MARKETS part 15

the article on entering international markets continues, part 15

So now that you’ve finished the article, what is the process?

Mode of entry (MOE) should be carefully determined. The determinants are:

The Host Firm’s
• Current business model
• Access to capital
• Attitude towards risk
• Pay back rate and period

The Market’s
• Accepted means of doing business
• Hole or Niche in the market
• Competitive modes of entry and their success/failure rates
• Differentiation of product and service

1. Issues should be discussed strategically. Set aside some days with visiting expertise to uncover means for market entry, and begin to understand the risk factors and budgeting process.
Time Needed: 5-10 business days
Format: Interactive seminar with all parties involved
2. Once a MOE has been picked, research should be undertaken to confirm the company’s decision. Project team for research selected
Time Needed: Depending on firm’s commitment. Can be 2 weeks -2 years
Format: Secondary research performed by outside firm or in-house. Primary research (interviewing locally) performed by professional firm
3. Budget should be created to complete the research stage of the project
4. Once research has backed the MOE, legal, tax, and regulatory advice may be necessary
5. Depending on MOE, direct sales research, partner approach, acquisition evaluations, or distribution channel research should be committed. If Greenfield site, budgeting team needs to be established.
6. Budget should be augmented based on information gained
7. Project team (inside and outside) should be chosen; work divided
8. Site analysis in new market to begin
9. Market distribution courted
10. Final decision (and budget created) on MOE undertaken
11. Full costs understood
12. Market entry team selected
13. Market entry team trained

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