countries to enter and how fast to expand. Typical entry strategies are the waterfall approach and sprinkler approach
waterfall approach, gradually
entering countries in sequence
It allows firms to carefully plan
expansion and is less likely to strain human and financial resources
the sprinkler approach, entering
many countries simultaneously
The main risk is the substantial
resources needed and the difficulty of planning entry strategies for many diverse markets.14
The company must also choose the
countries to consider based on the product and on geography, income and population,and political climate.
Developed versus Developing Markets
Evaluating Potential Markets
Many prefer to sell to neighboring
countries because they understand them better and can control their entry costs more effectively
psychic proximity determines choices.
Given more familiar language, laws, and culture, many U.S. firms prefer to sell in Canada, England, and Australia rather than in larger markets such as Germany and France.