Entering new markets opens the possibility of increasing revenue and/or decreasing the costs of goods sold, thereby increasing profits. It may also allow a company to follow its existing customers abroad, attack competitors in their home markets, guarantee a continued supply of raw materials, acquire technology or ingenuity, diversify geographically or satisfy stockholders’ desire to expand.
Choosing the mode of entry
For many companies, going global may be a matter of survival: there may simply not be enough domestic demand to keep them in business.
Selecting a mode of entry into a foreign market is among the most crucial strategic decisions a company can make. Weighing all factors and choosing the proper method can result in huge competitive advantages or it can cripple the organisation.
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IN OUR LATEST NEWSLETTER
– our July White Paper compares the various modes of entry to a foreign market
“Achieving a 30% profit increase by changing perception”
– this month’s case study tells how we boosted a client’s turnover
“A leader’s guide to being wrong”
– our July Snapshot challenges the cultural bias against taking blame
“Leading vs managing”
– our featured video explores the differences
“Disasters can open the door for innovation”
– guest author Paul Sloane on failures that have created opportunities