Premium Essay

Entering Foreign Market

In: Business and Management

Submitted By angelnh87
Words 1515
Pages 7
Entering Foreign Market
So you are considering entering the foreign market. Your company has been doing well in your home country and you want to approach another level of trade and sales. When it comes to a business entering a foreign market many things must be taken into account. Where, when, and how? Each question must be looked over carefully before making any decision. Where you decide to enter in the foreign market can help or harm your business. When and how you plan to enter is very important as well. You do not want to enter a country’s market at a very bad time because they may not be the best route for your business to take unless you actually plan to help and provide a service to whatever problem is going on within that country. Throughout this report I will explain where, when and how to enter the foreign market and why each is important.
First, when considering the option of entering a foreign market the first thing you want to do is take a good look at your business and begin the process of deciding where you should consider making a presence in the foreign market. I believe it is important to start off with entering one country first before taking on the whole market at one time. You must remember factors greatly vary by country to country which can greatly affect the ability to successfully engage in business. So in other words the same thing that worked for you in the United States may not work for you in another country. It is smart to study the foreign market and figure out which country could benefit greatly from your service or product. The “where” is important because a country you could be consider entering may already have enough supply of your product or service. Foreign competition must be taken into consideration as well. When considering the “where” for your business it is important to look at the trade opportunities and barriers that...

Similar Documents

Premium Essay

Entering the Foreign Market

...Entering the Foreign Market Principles of Marketing MKT 100 November 03, 2013 My company is called Henderson’s iPhone Store. We market all the latest versions of Apple smartphones. We will be marketing the new Apple iPhone 6 and entering all foreign markets. The target market for the iPhone is teenagers, college students, business class individuals, and adults. (Apple Inc., 2013). Our specific target market for this report is a married person, approximately 36 years old, and lives in a major city. This individual has a steady job, makes a solid income of about $65K a year. This individual likes to play sports, and has a very active social life. He has high goals which include gaining the experience which will assist him in landing his dream job with an income of over $100K yearly. Consumer’s behaviors include finding convenient mobile devises that offers more efficient ways for calling, messaging, and entertaining using a single button. These consumers are looking for the latest technology to satisfy their personal and social needs. Most of these consumers are affluent, and will purchase expensive products and brands which are shown as a status symbol (Apple Inc., 2013). Identifying the target audience is an important success factor for Henderson’s iPhone Store. Market segmentation can be used in many ways to construct the framework to influence their targeting activities. Understanding the market and the factors that influence consumer buyer behavior......

Words: 1302 - Pages: 6

Premium Essay

Whole Foods Entering Foreign Market

...States, Canada and the U.K. It is consistently ranked in the top 100 best companies to work for and the top 100 best Corporate Citizens. Business Proposal: This document outlines the possibility of Whole Foods expanding into the German Market. Considerations are explored in the realm of German Culture, the Organic Food market, Competitors, Pros and Cons, Entry and Exit Strategy, and Human Resources strategy to declare whether or not Germany is an appropriate fit for Whole Foods. Whole Foods Entering Germany: Successful Whole Foods CEO John Mackey, is quoted as saying "If you want to be competitive in the long term, your business needs to have discovered its higher purpose and it needs to adopt a stakeholder philosophy." In a world where unhealthy food, rife with chemicals and saturated fats is becoming the norm; Whole Foods definitely seems to have found it’s higher purpose. Whole Foods, which is providing individuals with fresh organic food to promote a healthy lifestyle and a higher way of living is poised to spread this philosophy to the rest of the world. This stakeholder philosophy puts the ownership of healthy living on each and every one of us by providing the piece that has sorely been missing in the American market; options. The Whole Foods motto is “WHOLE FOODS, WHOLE PEOPLE, WHOLE PLANET”, therefore it is fitting that Whole Foods continues an expansion past Canada and the U.K into other areas of the world that can benefit from such options. The......

Words: 954 - Pages: 4

Premium Essay

Economics

...Phase One Individual Project Natalie Olivo Global Managerial Economics ECON310-1301A-02 January 14, 2013 Phase One Individual Project Before entering into any other type of global market, it is important that the decision-makers familiarize themselves with different macroeconomic and microeconomic concepts. A solid understanding of these concepts will make it much easier for a decision to be made. Major decisions such as these should not be made on a whim. Any additional information that the people who make the decisions can get regarding how different aspects can affect supply and demand will help them to build a solid foundation for their expansion into the new market. The World Band and International Monetary Fund (IMF) play a large role in the global market. The World Bank supports and promotes the development of economies long-term. They also assist in poverty reduction by providing technical or financial support to help countries from specific areas. It is funded by its member country contributions and by the issuance of bonds. World Bank and the IMF work together on a regular basis. The IMF promotes international monetary cooperation. They give advice and technical help to he assist with the building and maintenance of strong economies. It is equally important to understand the Gross Domestic Product (GDP). When a country exports goods to another country, those exports bring money into the country. When money is brought it, it increases the......

Words: 1088 - Pages: 5

Premium Essay

Global Financing and Exchange Rate Mechanisms

...Introduction Business continuously expands into global organizations finding it necessary to pay close attention to the foreign exchange market. These companies must follow the foreign exchange market closely and should develop appropriate hedging strategies to protect them. Exchange rate risk is the unexpected exchange rate that may cause an organization to lose or gain income. Currency hedging is a method of minimizing the exchange financial rate risk within an international organization. Global Companies involved in operations should have good understanding of the financial risks that the company could go through prior to starting its venture. Exchange Rate Mechanisms Currency hedging is “a particular hedging strategy used to reduce risks in the foreign exchange market which are used as in any hedging situation, where one security would be offset by another security, such as holding a short and long position of the same security at the same time, (Investor Words, 2009).”This content can be found on the following page:http://www.investorwords.com/6779/ Is impossible to predict how much the currency will be worth on the exact day that company will be converting it. With hedging, the uncertainly is gone. When companies decide to expand their business into growing globally the company will have to deal with many new issues that would not have affected them if they would have continued doing business locally. The exchange rate is a very important factor when doing......

Words: 1088 - Pages: 5

Free Essay

Country Evaluation

...Country Evaluation & Market entry strategies With respect to Fashion Industry in India -By AMEYA DESHMANE PGDM-RM-(54) ACKNOWLEDGEMENT I would like to thank Prof. Thomas Matthew for his valuable guidance and advice. He not only suggested the Country Evaluation & Market entry strategies for the project but also contributed to the various attributes to be added in order to make a successful report. Index | Contents | Page number | 1 | Introduction | 4 | 2 | Country Evaluation | 5 | 3 | Market Entry Strategies- Definitions and Types | 7 | 4 | Joint Venture- Burberry India with Genesis Colors | 8 | 5 | Licensing- Tommy Hilfiger with Arvind VF | 9 | 6 | Franchising- Stuart Weitzman with Reliance Brands | 10 | 7 | Mergers & Acquisitions- LVMH & Gitanjali Jewels | 11 | 8 | Conclusion | 12 | Introduction International expansion for fashion companies presents an opportunity for the multinational companies to expand their growth. This may be due to an increase in the local or international competition in the domestic market for the company. In India the recent relaxation in the entry of FDI for single brand and multi brand retailing have prompted us to re-examine some of the market entry strategies that would be appropriate to enter into a country like India. For this purpose initially we will have to evaluate the market scenario in the country after which we will examine the various market entry modes which the companies in Fashion......

Words: 1576 - Pages: 7

Premium Essay

Will Bury Goes Global

...facets and equipments for transforming the printed books into the digital soft copies. Will is capturing the difference between capital verse consumers when changing into digital sound from written copyrighted print. Entrepreneurial ability is the last economic concept in the Will Bury Goes Global Scenario. Entrepreneurial ability is factoring the risks into one and therefore entrepreneurial ability is the most important economic concept. According to McDonnel-Brue,” Entrepreneur is an innovator assuming risks for initiating projects and takes strategic decisions in business” (McDonnel-Brue, Pgs 23-24). Will Bury to reach out in an untouched market is taking all the initiatives and risks for digitalizing hardcopy books and Will Bury will make good use of the skills learned at his current employer. Will is entering an uncertain market and taking risks that have the probability to yield negative financial results for his business. Will is an innovator by recognizing the consumers need and...

Words: 1181 - Pages: 5

Premium Essay

Communication Paper

...November 22, 2010 Channel and Pricing Strategies Team C’s objective is to state the channel and pricing strategies of Thermo Express. Our team has decided to have our home country as Chile and our international market country as the United States. We considered the population as well as the potential that our product “Thermal Express,” in order for the launching of the product to take place. We have also realized that the challenges and opportunity will accompany it. In order for the company to develop and launch, we had to develop pricing strategies in both the domestic and international markets. We will also provide justifications for our choice for acquiring the United States as our international market. The two advantages in this product are that it is green, meaning it is good for the environment and will eliminates the excessive use of cups and perishable items. Second because of the economic state, people can save money by using this and not constantly buying coffee or tea bags. Justification for Thermo Express Our organization has selected the United States has our international market to sell our product Thermo Express. Although the opportunities for companies to enter and compete in foreign markets are significant, the risks also can be high. Companies selling in global industries however, in fact have no choice but to internationalize their operations (Philip Kotler and Kevin Lane Keller, 2007, p.322). The company must......

Words: 1638 - Pages: 7

Premium Essay

Globalization

...Globalization Student’s Name Institution Globalization When undertaking to implement major financial decisions like investing in foreign stock exchange markets. It is important for organizations to conduct due diligence of this decision. This decision might mean the generation of substantial profits, especially where a corporation gets enlisted in a stock exchange market of a foreign country. Huge profits are realized when the company invites the members of the public to subscribe its stake through (IPO) initial public offer. On the other hand, a company might accrue massive losses perhaps due to shares volatility (Maskell & Baggaley, 2003). It is of the essence that a Company evaluates the proposed investment decision of getting enlisted in foreign countries stock exchange market they choose to invest. Due diligence will enable the Company access all information relating to the movement of stock and share prices. This information will allow a company to avoid investing in equity markets that are highly volatile (Maskell & Baggaley, 2003. (Maskell & Baggaley, 2003), defines foreign-exchange risk fluctuations in the prices or value of an investment due to changes in foreign exchange rates or exchange rates. This risk is also known as exchange rate risk or merely currency risk; it is simply the loss an investor accrues during a long or a short position due to unfavourable movements in the exchange rates. Currency risk mostly affects......

Words: 924 - Pages: 4

Premium Essay

Ben & Jerry's

...value, on cash, equipment and inventory; the “tangible assets” of the firm. Instead, Ben Cohen and Jerry Greenfield focused on “intangible assets” such as social concerns, quality of life, charity, and reputation, but in their minds the “intangible assets” were just am important if not more important. Ben Cohen and Jerry Greenfield business values were based on growth, shareholder value, and the overall care/quality of employees. Ben Cohen and Jerry Greenfield were intentionally slow to embrace the foreign market (Kursh, Lant, Majeske, Olver, Plant, 2014). Ben Cohen was quite reluctant to embark on global expansion because he felt that it did not coincide with the mission of Ben & Jerry’s. On the other hand, Jerry Greenfield was open to the idea of expansion and this is part of the reason why he visited Japan, for a market research tour in 1996. The purpose of the trip to Japan for Jerry Greenfield was to inquire on how Ben & Jerry’s would be able to enter the market in Japan. 2. Which of the environmental factors do you think are the two most important to the decision whether or not to expand into...

Words: 1375 - Pages: 6

Premium Essay

Business Location

...business will succeed, or fail. A few questions potential business owners have to answer are: Is location important for the success of my business, and what type of location is best for my business? Many business owners have to contemplate whether, or not, going overseas is the best fit for the product, or service, they plan on providing. When embarking into new territory, there is much uncertainty, and there are many risks associated. Before developing a presence in an international market, business owners must understand the culture, customs, and the risks related with the foreign market. There are many factors that can affect location decisions. However, selecting a location is becoming more challenging due to the increase in globalization in the workplace. Many firms consider embarking in business ventures outside their home country. Location decisions are not just within national borders, but surpass over international borders. There are key factors in achieving competitive advantage in foreign markets. Some key factors that should be considered before engaging in international business are: • Political risks and values • Economic issues: exchange rates and currency risks • Cultural issues One major factor that business owners must consider when conducting business in another country is political stability. The biggest mistake a business owner can make is underestimating the potential political risks in international business. Although political risks cannot be......

Words: 1128 - Pages: 5

Premium Essay

International Business

...HI5014 International Business Across Borders Foreign currency & exchange influences * The conversion of one currency into another currency and foreign currency also refers the global market where currencies are traded. * Exchange rate plays a vital role in trade. Exchange rate is the one of most important element for economic health of countries such as interest rate and inflation. * Exchange rate also affects one nation’s trading relationship with other nations. * If a country has high currency then that country exports more expensive but imports cheaper in foreign markets. And if a country has low currency then that country exports cheaper but imports more expensive in foreign markets. * If a country has high exchange rate then we can be expected to lower balance of trade for country and if country has low exchange rate then we can be expected higher balance of trade for country. Call Centre will face these main factors that influences exchange rate in Colombia * Inflation High inflation rate low currency value because of low purchasing power from other country, low inflation rate high currency value. Now in Colombia, inflation rate rises 7.59% to 7.98% in March of 2016. That why we can say that the price for goods increase quicker and people has low purchasing power in Colombia. So, in Colombia inflation rate is higher but currency value is lower. * Interest rate Higher interest rates offer lenders a higher......

Words: 906 - Pages: 4

Premium Essay

Ikea Swot Analysis

...making and product innovation process fast, contrary to a tall management structure. This is important, especially as the industry is a very competitive one. * The management minimized costs. Flamboyancy and waste were not encouraged - senior managers shared secretaries and travelled economy class. * The IKEA staff is involved in decision making. This is good corporate culture, as it will endear effective and efficient problem solving. Weaknesses * Inadequate staff to provide services in its huge and many stores. This occasioned long queues, which discouraged customers from purchasing items. * Production of items was done only in Sweden and shipped to other countries for sale. The company encountered foreign exchange costs, as the value of the foreign...

Words: 548 - Pages: 3

Free Essay

Foreign Exchange Markets

...Volatile Exchange In the Global Market Discuss and explain the functions of the foreign exchange market. The role of the foreign exchange market in international business and how it impacts a country's ability to do business is simple: It keeps the money flowing around the world. The foreign exchange (FOREX) market provides a place for nations to purchase, borrow, or sell their own currency to members of other nations. What the FOREX do in this regard is provide the resources for countries to make payments and transfer funds across borders, and provides purchasing power from one currency to another. These provisions make valuations of currency available to determine one of the greatest functions of the FOREX, the exchange rate. (Hill, 2011) The exchange rate is a price determined by the number of units of one nation's currency that must be surrendered in order to acquire one unit of another nation's currency. The exchange rate between two currencies is dependent upon official or private participants to buy and sell its currency to maintain an authorized pegged rate. The exchange rates in FOREX are set then by the market and not by governments. Even with these determinations, the biggest player in defining the exchange rates rely on supply and demand of American goods and currency. International business relies directly on the functionality of the FOREX. In addition to international business, citizens traveling to foreign nations have to rely on a standard in......

Words: 1393 - Pages: 6

Premium Essay

Risk in International Business

...systems in other countries exposes international firms to regulatory risks. For instance changes in a country’s banking system may limit a firm’s access to funding or their ability to repatriate money to their home countries. A major commercial risk is usually lack of knowledge of the international market. If exporters, for example do not have in-depth knowledge on the area where its sales are being made, it is more likely to fail in international business. Commercial risk occurs as the result of inadequate formulation and implementation of strategies, tactics and procedures. These also include timing of the company into a particular market, the competitive intensity existing prevailing in the market, poor strategy execution and the weakness of the partner and also the various kinds of operational problems. It should however be considered that commercial risks are usually unpredictable and it is therefore essential for firms to lay down effective strategies in place to ensure that this risk is reduced. Currency Risk Currency or Financial risk occurs as a result of the daily fluctuations of different currencies against each other. It also includes the valuation of assets and the foreign taxation policies available in different countries. This risk is mainly to do with the adverse fluctuation of exchange rates, inflation and other harmful economic conditions that may affect a firm’s return on investment. When there is a significant fluctuation of exchange rate, the value......

Words: 1642 - Pages: 7

Premium Essay

Foreign Currency Risk

...FOREIGN CURRENCY RISK EVALUATION ACC401 With Firm XYZ’s proposed expansion into three new foreign markets there will be several problems that arise. A risk assessment will need to be completed and presented to the board. The following is a risk assessment, with relevant subsequent mitigation measures in the area of foreign currency. Types of Risk There are primarily three types of risk that the firm XYZ faces with the expansion abroad. These are the accounting exposure, transaction exposure and the operating exposure. Accounting exposure, is defined as the exposure that a company faces due to the reduction of its value; as a result of foreign exchange differences between the currency used in the main branch and the currency used in the other country (Gertler, Kiyotaki and Queralto, 2012). Accounting exposure is also referenced as translation exposure. The item most affected by this risk is the balance sheet. This is because the balance sheet is the statement which shows the net worth of a company. Transaction exposure is the risk that a company involved in international trade might incur. Upon entering into an agreement, a company may have to pay higher costs to meet those financial obligations as a result of changes in the foreign exchange. Unlike economic exposure, transaction exposure is well-defined and short-term. Transaction exposure is simply the amount of foreign currency that is receivable or payable. Operating exposure is the risk that a firm with a......

Words: 998 - Pages: 4