Foreign Market Strategy Considerations

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Foreign Market Strategy Considerations John Paul Ramirez Grantham University Abstract When a company decides that it is ready to go international, there are a variety of options available to make that first step into doing so. These companies ready operate in foreign markets need to make careful and rational decisions in choosing their best entry choice into foreign markets. An organization must weigh the pros and cons of each market strategy before making their decision and realize that each strategy varies in cost, risk and the amount of company involvement. This paper offers an overview of the foreign market strategies and weighs the advantages and disadvantages of each one of the following: exporting, outsourcing, licensing, and wholly owned subsidiaries. This paper also describes what information is needed to make a decision and what factors come into play when selecting a strategy. Foreign Market Strategy Considerations Made in the USA! In older times this slogan and tag was very common. However now days “Made in China” or “Made in India” seems to be more common and all around us. In today’s ever changing economy many companies are now going global. However before they leave and take their business to foreign land they have to identify the best foreign market entry strategy to best meet their goals. They have to weigh what’s the safest, most practical, logical, and profitable way to enter the foreign market. Exporting, outsourcing, licensing, and wholly owned subsidiaries are all entry strategies that have to be considered and heavily weighed before decided which route the company wants to go. Factors to Consider When deciding to enter a foreign market or not the company that desires to do so must have a distinct strategy and have a handle on what its capabilities are. The company must have clearly defined objectives to achieve success.
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