Establishing a beachhead in international markets—A direct or indirect approach

Abstract

In the contemporary highly competitive international business environment companies have to exercise great care in devising entry strategies for foreign markets. This article analyses the role of beachheads in international strategy and how it fits with the company's entry strategy. It also describes the characterics of a desirable beachhead, and analyzes how firms expand beyond the initial entry position. Finally, an evaluation of what retaliatory action may be undertaken to prevent the establishment of such beachheads is presented.