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MARKET ENTRY STRATEGIES

1.1 CHARACTERISTICS OF THE SELECTED NEW MARKETS

WORKERS
- - Workers are the most frequent users of public transportation. By
increasing air quality and reducing oil consumption, as well as
through better land-use rules, public transportation contributes to a
healthier environment. It also aids in the expansion of company and
employment prospects. It's also crucial in emergency scenarios that
necessitate a quick and safe evacuation.
TOURIST
- - Having a choice of transportation options helps a site to cater to a
wide range of people and budgets. Transportation costs have an
impact on tourism on a greater scale. To put it another way, if aircraft
tickets to a destination are prohibitively expensive, fewer visitors will
travel there.
STUDENTS
- - School transportation helps to alleviate traffic congestion. Because
of the safe environment, every kid chooses buses for their daily
travel to school, resulting in a decline in private vehicles. Pollution is
lessened when there are fewer cars on the road.

TIMING OF MARKET ENTRY

The strategy for determining when to enter a market is determined by

criteria such as the type of product, the target market, the level of competition,
and the available budget.
Time of Year
- The season might have a significant impact on your prospects of
success. At particular seasons of the year, certain industries are
busier. Customers are unlikely to use the bus during the holidays
leading up to April 15th since they will not have time to learn how to
use it. Similarly, a Christmas product should be published early
enough in the year to establish traction by the time the peak
purchasing season begins.

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SCALE OF MARKET ENTRY

Large scale market entry

- Large-scale market entry indicates quick entry and provides first-
mover benefits including demand acquisition, scale economies, and
lower switching costs. An introduction on a lower scale helps the
company to gradually grow while becoming more familiar with the
market and limiting market exposure..

MODE OF MARKET ENTRY

Licensing and Franchising

- Licensing agreements with foreign corporations are a good option for
a company that wants to enter a worldwide market rapidly while
assuming minimal financial and legal risks. In exchange for royalty
fees, an international licensing agreement allows a foreign company
(the licensee) to sell the products of a producer (the licensor) or to
exploit its intellectual property (patents, trademarks, and copyrights).
Trademarks, patents, and production procedures are examples of
intangible property. In exchange for the rights to utilize the intangible
property and maybe technical help, the licensee pays a fee.
Licensing has the potential to give a very high return on investment
because it requires very little investment on the part of the licensor.
Potential earnings from manufacturing and marketing efforts may be
lost if the licensee produces and promotes the product. As a result,
licensing saves money and is low-risk. It does not, however, alleviate
the significant disadvantages of operating from a distance. Licensing
tactics, on the whole, stifle control and yield very modest profits..

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