Market Entry Strategies (Sommthie King)

1630 Words7 Pages
Smoothie King has identified several different market entry strategies they could use to pave their way to success in selling their world renowned smoothies in the Slovenian market. They are aware that the smoothie industry still remains a niche market with constant opportunities for growth and enhancement in this ever-increasing market. However, Smoothie King needs to take into consideration that choosing a market entry strategy can have a profound impact on their global strategy. (Gillespie et al 2007) The mode of entry into any foreign market is often influenced by country risk, cultural distance, company assets, international experience and advertising intensity in the potential country. (Zhao et al 2004) Smoothie King needs to look at all of these factors and has to evaluate all of their options prior to choosing the most appropriate market entry strategy for smoothies in Slovenia. It is evident that when a company enters a new market, it seeks a specific set of customers to grow and diversify its business. In Slovenia, Smoothie King aims to spread their product across the country by promoting that their range of smoothies offer good nutrition which alternatively improves the health, the well being and the life of its customers. This distinguishes that the success of a new market entry strategy for Smoothie King in Slovenia depends on their ability to match their capabilities to the requirements of their customers. (Grigsby 2007). Smoothie King has identified numerous opportunities in Slovenia for their product and the only concern facing them is how they should enter that country and what strategy they should follow. Each mode of entry hosts numerous advantages as well as disadvantages for Smoothie King. The four principal modes of entry into a foreign market include exporting, licensing, strategic alliance and wholly owned manufacturing subsidiary.
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