Global Market Entry Strategies Part I

By M. Isi Eromosele

In the current interconnected global economy, more companies are making the decision to go beyond their borders and enter the foreign market. Success in the foreign market involves looking at the world market with a global perspective. It requires planning, organization and the willingness to try new approaches in doing business.

A company must be ready to execute a global marketing management, face intense competition in the global marketplace, engage in strategic planning and explore alternative market entry strategies.

When a company makes the commitment to go international, it must choose an entry strategy. The choice it makes will depend on market characteristics (such as potential sales, strategic importance, cultural differences and country restrictions); the company competencies and capabilities, knowledge of the target market and the level of commitment that the top management is willing to make. The planning for entry into global markets should be done in a systematic way that relates to the future strategic vision of the company. Structurally, the planning could be executed in three phases: corporate, strategic and tactical. It would be an attempt to manage the effects of external uncontrollable factors that will test the firm’s strengths, weaknesses, objectives and goals.

• International corporate planning is essentially long term, incorporating widespread global goals for the enterprise
• Strategic planning will be conducted at the highest level of management and deals with products, services, capital expenditure, research and short- and long term goals of the company
• Tactical planning, or market planning relates to exact actions and to the allocation of resources used to implement strategic planning goals in individual markets

The planning process, which would offer a detailed guide to preparing the firm for operating in several countries, should be done in four phases:

• Phase 1 - Matching the Company and Global Market Needs
• Phase 2 - Adapting the Marketing Mix to Target Global Markets
• Phase 3 - Developing the Marketing Plan
• Phase 4 - Implementation and Control

The above would need to be followed by the company making a decision on the Global Market Entry Strategy. The options are as follows:

• Target Market Selection
• Choosing the Mode of Entry
• Exporting
• Contractual Agreements
• International Strategic Alliances
• Direct Foreign Investment

Target Market Selection - The issues to be explored include logical flow of entry decision process, method for pre-screening target market opportunities, opportunity matrix for various geographical regions of the world (Europe, Asia, North America, Africa, Middle East, Latin America...)

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

Copyright Control © 2011 Oseme Group