Market Entry Strategies Essay Example | Topics and Well Written Essays - 2500 words

Market Entry Strategies - Essay Example The process of choosing the particular place to enter with a new venture is important since it determines the level of success of the firm. The factors that should be considered when setting the destination for the new venture include internal factors, external factors, desired mode characteristics, and transaction specific behaviors. Consider the location of any direct investment and then consider the culture of the country in terms of religion, Other factors that need to be considered includes institutional weaknesses and government policies of the country in which the new market is situated. Choosing the appropriate space involves market scanning and is based on secondary data and it should give the advantages and the disadvantages of investing in a particular market. Market research is the most complex part of determination of where to invest and it requires more resources to manage. Market research is mainly based on primary research and this is the reason why it requires more r esources to manage. Among the factors that are studied during market research are the geographic distance, cultural proximity, maturity of the distribution system and the economic and political stability in the region (Su, 2013). Timing of entrance According to Veronika (2007), timing of entrance is also an important for the organization just like the positioning of the market system. Both the latecomer and first mover have got advantages and disadvantages that they enjoy in market acquisition and establishment in the market (Limbersky, 2008). The first mover takes the advantages that include technological leadership and pre-emption of scarce resources in the market. The first movers also enjoy the advantages that come with of strong brands and the establishment of entries of barriers in the market. According to Michael and Hans (2012), the late movers also enjoy some advantages in the market that first mover cannot easily enjoy and they include opportunities to ride on first mover investment in the market. Janet and Gao (2012) also