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Word Count: 750
Introduction Organisations have a choice of a wide range of market entry strategies in order to expand their operations internationally The mode of entry into an international market is a reflection of the relative importance assigned to the following criteria The level of control the organisation wishes to exercise over its interestsconcepts overseas The amount of resources it is willing to commit to international expansion The flexibility it wishes to retain to allow its interests internationally to change their activities or operations quickly and at low cost The extent of payback required to meet overall salesgrowth targets Market Entry Methods Cunningham1 1986 identified five strategies used by firms for entry into new foreign markets iTechnical innovation strategy - perceived and demonstrable superior products ii Product adaptation strategy - modifications to existing products iii Availability and security strategy - overcome transport risks by countering perceived risks iv Low price strategy - penetration price and v Total adaptation and conformity strategy - foreign producer gives a straight copy There are a variety of ways in which organisations can enter foreign markets Exporting Exporting is the most traditional and well established form of operating in foreign markets Exporting can be defined as the marketing of goods produced in one country into another Whilst no direct manufacturing is required in an overseas country significant investments in marketing are required The tendency may be not to obtain as much detailed marketing information as compared to manufacturing in marketing country however this does not negate the need for a detailed marketing strategy The advantages of exporting are manufacturing is home based thus it is less risky than overseas based gives an opportunity to learn overseas markets before investing in bricks and mortar reduces the potential risks of operating overseas The disadvantage is mainly that one can be at the mercy of overseas agents and so the lack of control has to be weighed against
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