Q1. What kind of strategies should be used to minimize risk? Give 6 ways.

Benefits of venturing overseas Increased sales opportunities help spread fixed costs, leading to lowering average costs and increased profits such as economies of scale. Provide a solution to a previously unmet gap or need in the new competitive space. Improve revenue streams and avoid sales fluctuation by selling to other parts of the global. It may help widen your business networks, develop you brand name and find new source of revenues. Identify and know your market You will need to be sufficiently equipped with knowledge of the market conditions of the country or countries within your radar. This will require a detailed market research on the country of entry, including the political, economic, socio-cultural and technological factors. It will give you an indication of the political stability and business operating environment. Understand your product In examining your product strategy, a few things to look at would be the product's attributes and characteristics, distribution and delivery issues, positioning, pricing and service issues. Similarly, before you take your product abroad and start selling, you need to at least have some basic product research or testing done. This is especially if you're dealing with products that involve some form of customization in terms of tastes and preferences, packaging, local product familiarity or understanding and so on. Research and due diligence It help to investigate your market comprehensively to determine whether you have a market and interest for your product and service. It's essential to understand the market conditions, its overall potential, the customers, marketing channels, country trade policies, competition and more. Market Entry Strategy A market entry strategy provides you with a strategic roadmap to help you organize

1

We can classify these motives into two categories which are internal and external. Business practices are different all over the world and they are shaped by cultural attitudes regarding work. The most useful concept to understand cultural differences is “High and Low Context Communication”. It also serves as a communications plan for you.your thought process. communication. time and space. duties. your management and investors. Other things that you need to consider before entering a market? Internal and External When planning to entering a market there are many things that one should take into consideration. trust. As business is a collaborative activity. Global Trade Solution Before you decide to trade goods across international borders. The main habits of the market The cultural distance should be another factor to keep in mind. confidence. but also an excess of useful information can have the same effect. and provides signals for you to exit the market in the event that things don't go according to plan. Thus below are some factors which need to be taken into consideration before entering markets: Trading obstacle Often criticized because of their effect on the development of the economy. Developing a market entry strategy assists you to understand the costs and benefits of each possible approach to the market. trading obstacles still exist in some countries. communication plays an essential role. EU. European Free Trade Association. you will have to evaluate the government rules and regulations. Q2. The most important examples of free trade areas are: NAFTA. But not only too little information can create uncertainty. documentation and whether your product can be exported or imported legally and efficiently. Check the reaction of the employees 2 . New West Partnership and Gulf Cooperation Council common market. SAFTA.

Our employees know a lot about our product. Should Coe’s expand to Mexico? Why? Yes. then we will find that we will get a similar response from employees of the other country. In the current scenario. However. as the company adapts its products and marketing program with a very high degree of specificity. This is considered to be the last form of target marketing. duplicate that in Mexico. if the response from employees is negative. Think about customized marketing The customized marketing is generally used in those companies whose products are unique or quite expensive. There should be room for adaptability in the business model while designing the entry strategy in a new country Mexico is a good move to expand the company internationally. the experience such as unknown regulations and unsuited management should be learned from and steps taken accordingly. The best thing would be to take a 360 degree feedback from employees. Especially the sales force.We need to check our employees’ reaction to export in another country. This can be another critical point for the improvement of our business. and there are young people just starting out as you find in the US. Get feeling and data should be combined to determine the optimal strategy to start operations in Mexico. Coe's should expand to Mexico. There are two main reasons for the success of Coe. there are three things which Stan and team should take care of which are include instead of treating Puerto Rico as a bad example. if one has to grow it makes sense for sovereign diversification of risk. However. The Mexican people are just as interested in great looking homes. If the pattern works in the US to place a COE next to a Wal-Mart. And they are the ones who have to be taken into consideration before deciding on expanding in any international market. Q3. then keep an eye on the 360 degree feedback and find out WHY they think we cannot expand to international markets. If you have a positive response. 3 . This also means that company brand is strong internationally and they have the capability to expand.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.