Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize, The

Chapter 3. Strategies for Entering and Developing International Markets

The process of penetrating and then developing an international market is a difficult one, which many companies still identify as an Achilles’ heel in their global capabilities. In fundamental terms, entering a new country-market is very like a start-up situation, with no sales, no marketing infrastructure in place, and little or no knowledge of the market. Despite this, companies usually treat this situation as if it were an extension of their business, a source of incremental revenues for existing products and services. Two aspects of the typical approach are particularly striking. First, companies often pursue this new business opportunity with a focus on minimizing risk ...