FOREIGN MARKET

ENTRY MODES
PRESENTED BY

ROHIT GOEL &

GAGANDEEP SINGH
1
In this presentation we will address the
following questions:-

1.What factors should a company review

before deciding to go abroad?

2.How can companies evaluate and select

specific foreign markets to enter?

3.What are the major ways of entering a

market?
2
With faster communication, transportation,
and financial flows the world is rapidly
shrinking. Products developed in one
country- Gucci purses, Mont Blanc pens,Mc
Donald’s hamburger, Japanese sushi, Chanel
suits, German BMWs- are finding enthusiastic
acceptance in others. A German businessman
may wear an Armani suit to meet an English
friend at a Japanese restaurant , who later
returns home to drink Russian vodka and
watch an American soap on TV.

3
Although the opportunities for companies to
enter and compete in foreign markets are
significant , the risk can also be high.
Companies selling in global industries ,
however, really have no choice but to
internationalize their operations.

4
 DECIDING WHEATHER TO GO ABROAD

DECIDING WHICH MARKETS TO ENTER

DECIDING HOW TO ENTER THE MARKET

DECIDING ON THE MARKET PROGRAM

DECIDING ON THE MARKET ORGANISATION

FIG. SHOWS MAJOR DECISIONS IN
INTERNATIONAL MARKETING 5
 DECIDING WHEATHER TO GO ABROAD

There are several factors that are drawing more and more
companies into international arena:

 The company discovers that some foreign markets present

higher profit opportunities than the domestic market.
The company needs a larger customer base to achieve
economies of scale.
The company wants to reduce its dependence on any one
market.
Global firms offering better products or lower prices can attack
the company’s domestic market. The company might want to
counterattack these competitors in their home markets.
The company’s customers going abroad and require
international servicing. 6
Before making a decision to go abroad , the company must weigh
several risks:

The company might not understand the foreign customer

preferences and fail to offer a competitively attractive product.

The company might not understand the foreign country’s business

culture or know how to deal effectively with foreign nationals.

The company might underestimate foreign regulations and incur

unexpected costs.

The company might realize that it lacks managers with

international experience.

The foreign country might change its commercial laws, devalue its
currency, or undergo a political revolution and expropriate foreign
property. 7
 DECIDING WHICH MARKETS TO ENTER

In deciding to go abroad , the company needs to

define its marketing objectives and policies.

How many markets to enter

Developed vs. developing market
Regional free trade zones- THE EUROPIAN
UNION,NAFTA,MERCOSUL,APEC
Evaluating potential markets

8
DECIDING HOW TO ENTER
THE MARKET

9
DIRECT INVESTMENT

JOINT VENTURES

LICENSING

DIRECT EXPORTING

FIG.SHOWS- FIVE MODES OF

INDIRECT EXPORTING
ENTRY IN TO FOREIGN
MARKET
10
THANK YOU

11
ANY QUERIES

12