Principles of Marketing, 17/e

Deciding How to Enter the Market

Author Comment

A company has many options for entering an international market, from simply exporting its products to working jointly with foreign companies to setting up its own foreign-based operations.

Once a company has decided to sell in a foreign country, it must determine the best mode of entry. Its choices are exporting, joint venturing, and direct investment. Figure 19.2 shows the three market entry strategies along with the options each one offers. As the figure shows, each succeeding strategy involves more commitment and risk but also more control and potential profits.

Figure 19.2

Market Entry Strategies ...