New Market Entry

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 New Market Entry

Newmarket entry has a two-dimension approach which includes a company introducing

new products or services into a market or a company expanding the geographical horizons of its

sales to include selling products and services in new markets. New Market entry can be

immensely beneficial to accompany if appropriate strategies are followed. Newmarket entry can

increase sales and profit expansion, acquire huge markets, extend brand recognition, increase the

product life cycle, and lower the risks of operating in only one market. Thus, to realize these

benefits of operating in a new market, new market entry strategies as described by Musah

&Yusif., 2019 are utilized. Depending on the product or the nature of the new market, new

market entry can involve several ways not limited to exporting, franchising, establishing joint

ventures, licensing, setting up foreign direct investments, owning subsidiaries, and piggybacking.

Article by Musah &Yusif., 2019, on "Accessing Market Entry Strategy in Emerging Markets” is

the literature that will guide this study paper since it covers various aspects of these entry

strategies and provides an example with a case study.

The methodology of the study

This study paper is a research paper that utilizes the internet to search for literature

materials that cover the topic "New Market Entry" extensively. From the internet search, there

are numerous websites, journals, and books related to the topic. The next step is to factor out the

websites, and the journals and books are left to choose from. Recent materials offer advanced

research into the topic, and therefore materials older than five years are factored out. Topic

relevance is also a consideration since most literature focuses on international new market entry,

and the result is only a few articles remain. The article by Musah &Yusif., 2019, is the most

appropriate to guide this study. Analysis of the article by Musah &Yusif., 2019 gives the
strategies of new market entry, barriers to new market entry, and effects of new market entry for

companies.

Study findings

Newmarket entry is a complex procedure that requires prior research of the new market

and a great deal of understanding of the product or service to debut in the market. According to

Musah &Yusif., 2019, firms willing to grow operations in new markets have first to answer

questions like who they are, what they want, where to go, and how to get there. Similarly, the

various new market entry strategies have advantages and disadvantages and apply best to the

company that knows the market or the product. Reasons for growing into new markets ranging

from trying to avoid risks of operating in one market, increasing competitiveness, reducing

production costs, and desire to expand revenues and profits (Musah &Yusif., 2019).

There are requirements that companies need to meet to expand in new markets, like

identifying the market, surveying the particular needs of the company, and develop a product or

a service designed to meet the specific needs of the market. In methods like acquisition, the

company needs to determine whether it will need to complete the new company's complete

acquisition or partial ownership. The joint venture's new market entry strategy gives the

company some legitimacy and reduces foreignness. On the other hand, the Greenfield acquisition

gives the company quick access and presence to the market through investments (Musah

&Yusif., 2019).

Barriers to new market entry include political stability of the new market, the economy of

the new market, and language barriers in the new market. However, new market entry is highly

challenged by government policies and regulations and funds movement restrictions. Cultural

barriers are also difficulties that a firm may face in making new market entries. Despite the
barriers to new market entry, successful expansion helps the company make developments in

getting huge markets, boosting revenues, and enlarging profit margins (Musah &Yusif., 2019).

What the findings mean

The findings in new market entry mean that the topic is an extensive research area that

requires further studies to develop clear outlines of classifying which strategy is most effective

for which product. The study findings extend my knowledge on market research strategies to

utilize whenever faced with the challenge of expanding to new products or new geographical

locations of a company. From the findings, one can recognize factors to consider before

expanding a company's products or regions of supplying a product or service.

 References

Musah, A., Badu-Acquah, B., & Yusif, A. (2019). Accessing Market Entry Strategy in Emerging

Markets: A Case Study of Edel Technology Consulting Limited. International Journal of

Academic Research in Business and Social Sciences, 9(1).

http://dx.doi.org/10.6007/IJARBSS/v9-i1/5465