Borrow Listen. Want to Read. Download for print-disabled. Check nearby libraries Library. Share this book Facebook. November 17, History. An edition of Entry strategies for international markets Toronto ,. New York. Written in English — pages. Subjects Export marketing , International business enterprises , Management. Not in Library. Libraries near you: WorldCat.
Entry strategies for international markets , Jossey-Bass. Entry strategies for international markets , Lexington Books. Entry strategies for international markets First published in Subjects Export marketing , International business enterprises , Management. Classifications Dewey Edition Notes Includes bibliographical references p.
Classifications Dewey Decimal Class R66 The Physical Object Pagination xii, p. Each country has its own culture and tradition, and as a foreigner, you have to accept and give due respect to it. It extends from the way you greet someone, holding business meetings , eating etiquette, even shaking hands or greeting by bringing two hands together as in Indian Namaste. In Japan, you may have to slightly bow down to show respect.
Understanding such cultural differences and appreciating them is very important to establish long-term relationships. In the USA, the greeting is mostly by handshake, but in other cultures, it could be a warm hug, bow, kiss on the cheek and so on. Care must be taken to use the appropriate salutation when meeting them as it can hurt their sentiments. Half of doing business in an international market entry strategy is about understanding their history, culture and getting familiar with them, marketing experts said.
Cultural sensitivity is driven by two factors- empathy and objectivity. Having empathy means your ability to recognize and accept differences that manifest in social situations. There is a popular saying when in Rome do as the Romans do.
Not properly understanding the cultural, language differences, linguistic differences can result in your branding exercise backfiring totally. One has to be careful with the language, and small mistakes can harm relationships. One must be careful of the masculine and feminine genders. If there is a slip-up and use la for le by mistake, it could be interpreted as ignorance or inexperience on your part and thus harm business negotiations. In business negotiations, too, there are cultural differences.
In the domestic market, it is mainly demand, supply, and competition from other firms in the industry that matters most. However, when doing business in other countries, you must have a detailed analysis of currency movements, historical trends and be able to predict their behavior. Contracts are negotiated months in advance, and in between, currency exchange, values may have changed, which may be adverse in your deal. It is better to lock in currency rates and delivery dates and avoid speculation.
There are now commodity exchanges where exporters and those doing overseas business can hedge their risk in various currencies. Software, pharma, manufacturing, agro-products are all susceptible to currency risk. Laws could differ from country to country, province to province, and the law of contract, company laws, and industrial laws could have subtle differences and hence care should be taken from the inception stage when the company is incorporated.
Tax laws have to be complied with, and failure to do so could have serious financial ramifications. It is better to have local attorneys to provide legal counsel. It could help a new entrepreneur from overseas to navigate any unforeseen obstacles and explain all contract provisions and terminology. It I important to understand the laws and legalese of the jurisdiction that governs your contract before it becomes legally binding.
It is often a good exercise to understand what the competitors have done in terms of marketing strategy , distribution, and what target audience or demographics they have catered to. What are the obstacles they faced, how much market share have they got, how they go it? Understanding the cultural differences and tradition also means understanding the demographics of the nation- the age groups, jobs, religion, income, and social status of the target category, and tuning the strategies appropriately.
For a company or entrepreneur wishing to do business abroad, there are international markets meaning several options- one is to manufacture in own country and export, sell to a third party and export, contract manufacturing, franchising, manufacturing abroad, and through joint ventures.
Each has its own advantage and disadvantages. Indirect export by production in the home country, the efficiency of production, inflation, cost of production, raw materials, quality of the product will have a bearing on the success of the product in international market entry strategies.
The fluctuation in the currency will have an impact on the profitability of export operations. The product has to conform to safety standards and other quality parameters set in the exporting nation.
Some companies use third-party marketing agencies to export to other countries- where it is easier to get the thing done as the marketing and logistics part is handled by a company having expertise in the country and industry but margins would be affected as it has to be shared with the marketing agency.
Some companies provide a license in a foreign country to produce their product for which they get the royalty. Franchising is also another form of licensing whereby the brand name, logo and products are sold by the franchise upon a lump sum payment made to the brand owner.
MacDonalds, KFC, Star Bucks and several food chains use the franchising route to gain international market definition access. Bata shoe company gives the design to small units in target countries for making their shoes and accessories that are then sold under the Bata brand name.
Now that China has become the manufacturing hub of the world, apart from Thailand, Taiwan, and South Korea, most manufacturing takes place in these countries either in the free trade zone or otherwise and subsequently shipped to other consuming countries. Some companies take the risk of manufacturing abroad by setting up their own unit or taking over an existing one. Or Apollo setting up the manufacturing unit in Germany or Ford setting up manufacturing in Chennai in Tamil Nadu State are all examples of manufacturing in overseas countries.
Such operations entail huge investment, compliance with laws, and taxation issues. However, in some countries, state governments and federal governments invite foreign investment in manufacturing as it can boost employment, income, enable technological know-how, and rapid growth of the economy, especially if local savings and investment potential is low.
In international marketing concepts in some countries especially in the Gulf region, overseas investment is allowed only as joint ventures between a local industrialist and overseas companies.
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