Market Entry Strategies Research Articles

Improving the selection of international distribution partners by using quality management methods

PurposeThe importance of international markets has increased in the past years and will further increase in the future. This offers potential for being competitive, but especially for small- and medium-sized enterprises (SMEs) is going along with a variety of risks, e.g. the competition in the domestic market intensifies. Nevertheless, in most cases, SMEs with foreign operations are more successful than SME operating solely in the domestic markets. Nevertheless, the internationalization activities of SME are often unsystematic and emotional, especially when looking for distribution partners. The research project “Empirical based development of an instrument for identifying and making decisions about the choice of market entry and the selection of distribution partners of SME of the tool and cutlery industry when developing foreign markets” deals with this topic. In this paper the results of a literature review and an expert discussion regarding market development and especially the process of finding distribution partners for foreign markets are presented. Also, further steps in the project dealing with aspects of realizing the detected success factors by using quality management methods are explained.Design/methodology/approachThe first step comprises a literature review and an expert discussion with leading managers of SME, with the aim to receive information about market entry decisions and selection of distribution partners. Therefore, a literature review and an expert discussion with leading managers of SME are carried out. The discussions are evaluated with MAXQDA©, a software for qualitative data analysis. Next, a questionnaire is designed for a quantitative analysis of the topic and will be evaluated by using SMART-PLS. Then, the results will be used as input variable for a quality function deployment for identifying appropriate measures for implementing the prior identified success factors. Thereby, also quality management methods and techniques will be used for finding the “right” measures. In this context, also a method for selecting distribution partners will be developed which is based on the logic of supplier evaluation. Finally, an Excel-based tool will be developed which includes the results of the project and allows companies easily applying them.FindingsA literature review and an expert discussion within the tool and cutlery industry have been carried out and analysed. Thereby, the need for action regarding the selection of distribution partners has been revealed as essential step for success in foreign markets. Literature mostly deals with aspects like choosing appropriate countries for market entry and market entry strategy but not with distribution partners. Expert discussion also has shown that choosing distribution partners is often managed with gut feel. It lacks a criteria-based approach for optimizing this step during the internalization process.Originality/valueFinding adequate distribution partners for a successful entry into foreign markets has not been investigated thoroughly yet. The project offers insights into determining factors for the selection process and improves the distribution partner selection by using quality management methods, for instance, by adapting the fundamental procedure of supplier assessment for distribution partner assessment.

Influences of cognitive dimensions on the collaborative entry mode choice of small- and medium-sized enterprises

PurposeThe purpose of this paper is to address internationalisation of small- and medium-sized enterprises (SMEs) by specifically focussing on collaborative entry modes. Despite significant research done on market entry and internationalisation strategies of firms, the use of collaborative entry modes by SMEs during internationalisation has not received a lot of attention. The authors contribute to foreign market entry studies by analysing the influences of cognitive dimensions on collaborative entry mode choice (equity vs non-equity modes) of SMEs in their international markets.Design/methodology/approachThe authors analyse the influences of cognitive dimensions on the choice between equity-based vs non-equity-based collaborative entry modes. The empirical sample consists of internationalisation strategies of 345 Italian SMEs, where the authors used a questionnaire to collect the data. The authors use structural equation modelling to analyse influences of factors like asymmetric information, informal institutional distance, time trends of country, perception of size and resources of potential host country partners, and perception of host country partners’ power on this important market entry mode.FindingsThe results show that high informal institutional distance leads to preference of non-equity-based collaborative entry mode by Italian SMEs. The authors also find that positive time trends of the host country, positive perception of size and resource of the local partner, as well as the local partners’ power leads to preference of equity-based collaborative entry mode by Italian SMEs.Originality/valueThis study focusses on an ignored aspect of market entry strategies, i.e., equity vs non-equity collaborative entry mode choice of SMEs. The authors use insights from resource-based view and cognitive dimensions literature, to address the influences of five cognitive dimensions on the collaborative entry mode choice of SMEs during their internationalisation.

Role of import and export management strategies in foreign market entry and production methods. Case for foreign direct investments strategic alliances

Organizations, which can select the appropriate market entry and product line strategies, and measure their development program performance consistent with their strategy, will have greater chances of success, even in the face of tougher international competition and dramatic economic cycles. Any organization that aspires to go global faces various options from which to choose from as an expansion or market entry strategy. These options basically vary on costs involved, associated risks and degree of control expected. The objective of this paper is to evaluate the role of import and export management strategies in foreign market entry and production methods. Case for foreign direct investments strategic alliances. There are 2 main entry strategies used by firms enter into foreign markets, that is, domestic production and foreign production. Export management companies are used when companies establish dedicated firms to specially deal with export businesses. The special purpose export companies can act for a couple of companies or products. FDI refers to a composite bundle of capital stocks, know-how and technology which has a direct impact on the growth of a country. The paper confirms that there are very clear reasons for an entity to go global market whereas the advantages have been well enumerated. Going global requires capital muscle to make the expansion worthwhile. However, for such firms to deliver value to their stakeholders, they must be willing to soak in some risks and must therefore take time to calculate what strategy will be most appropriate to enter into any given market.

Entering Conscious Consumer Markets: Toward a New Generation of Sustainability Strategies

More than 40% of U.S. consumers participate in the $300 billion conscious consumer market (CCM). In the past decade, the growth of the CCM has not gone unnoticed by startups and established multinational corporations. Yet what differentiates success and failure of such forays is not fully understood. By using multi-case study design, this article explores how a range of firms have approached entry into the CCM. It develops a CCM Entry Strategies Matrix that suggests alternate market entry strategies dependent on the scope of the marketplace and the values of the target consumer segment.

Entry to Avoid Competition? Venture Capital and Firm Market Entry in U.S. Local Telephone Industry

This paper offers a novel investigation on how venture capital (VC) may affect market entry strategies of the funded firms. Specifically, we theorize that a venture capital's portfolio diversity, a...

Key success factors of international market development

PurposeThe purpose of this paper is to develop an evaluation model to determine the relative weights of key factors influencing international market development (IMD) success through analysis network process (ANP) during group decision-making. An empirical case of the Taiwan bulk shipping industry is used to illustrate the feasibility of the proposed approach.Design/methodology/approachThe literature review is performed to generate 20 key success factors (KSFs) along with four factor categories in IMD (such as organizational capability, environmental scanning, international strategy and internationalization behavior). Then, ANP is applied to develop an evaluation model that prioritizes the relative importance linking the above four factor categories with 20 evaluated KSFs.FindingsWith respect to the final weights for factor categories, “international strategy” and “environmental scanning” are the two most important criteria, followed by “organizational capability” and “internationalization behavior”. The results also showed that by reviewing the global weights of the 20 KSFs of IMD, “service as competitive advantage”, “market potential” and “risk taking” have the highest rankings.Practical implicationsThe findings indicate that firm expansion into international markets typically depends on a successful international strategy. Hence, to enhance their global market competitiveness, Taiwan bulk shipping firms should focus their efforts on planning international market entry strategy and prioritizing shipping services with high-potential target markets.Originality/valueTheoretically, the study results can provide both theoretical basis and empirical evidence, indicating the relative weights and priorities of KSFs of IMD for the Taiwan bulk shipping industry. From the managerial perspective, the analytical results can help managers focus on main factors and identify the best policy to improve their IMD practice and performance.

Dilemma of “Make in India” for Dalmec industrial manipulator S.P.A, Italy

Subject area The subject areas are strategic management, international marketing business-to-business marketing. Study level/applicability The study is applicable to undergraduate and postgraduate courses. Case overview Dalmec Industries Manipulators India Pvt. Ltd. was incorporated in 2011 as a private limited company under the Companies Act, 1956. The company was formed to carry on importing machinery and distributing it to the clients. This case focuses on the dilemma faced by the company: whether it should establish a manufacturing unit in India or continue with the current operation procedures. Dalmec has faced various problems in India regarding local players, low-cost material handling equipment and the nascent stage of material handling industry. In Europe and the Middle East, the industries are more focused on safety standards and provide high quality material handling products to their workers, compared to the Indian industries. As local players in material handling sectors price their product very low, to compete with them with quality products is a major challenge for foreign companies. The company needed to build a strong and unique brand for non-European markets. In India, the material handling equipment market is crowded with local players. So, Dalmec needs to establish its reputation as a reliable partner and create a distinct identity. It has to create brand awareness among Indian companies and influence the decision makers of the corporates. The case discusses the impact of Make in India campaign on Dalmec and examines whether the Make in India initiative will prove helpful to Dalmec. Expected learning outcomes This study enables to familiarize students with the expansion strategy of a company; help students understand the international market entry strategies frequently used by multinationals to expand their business.; examine the feasibility of entering into emerging markets like India; and make students understand the relevance of the Make in India campaign for foreign corporate players. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.

Estrategias de entrada al mercado de trabajo de los atletas olímpicos. Una tipología

El objetivo del siguiente artículo es establecer una tipología de inserción laboral en deportistas olímpicos. A partir la teoría de la elección racional y la teoría de la reproducción social, se condujo un cuestionario telefónico a una muestra de 94 deportistas (68 hombres y 26 mujeres). Mediante el procedimiento de conglomerados jeráquicos se identificaron cuatro grupos de deportistas: estrategas con vida paralela, estrategas por cuenta propia, deportistas para siempre y no estrategas; es un trabajo. Los resultados también muestran cómo a mayor capital cultural y económico de la familia se plantean mejor las estrategias y las posiciones alcanzadas por los deportistas en su segunda carrera son mejores. Estos resultados pueden servir para desarrollar y adaptar los programas de apoyo a los deportistas según su perfil.

Startup Intelligence: New Opportunities for Entrepreneurs of the Digital Economy Through Knowledge-Based Market Decisions

This article examines to what extent entrepreneurs of the digital economy are in a position to take adequate decisions regarding their target market, what kind of information they need in order to achieve this objective and what challenges they face in the process. The findings of this article represent in essence a summary of the author’s doctoral thesis. The major challenges confronting startups of the digital economy in evaluating their target markets and taking the decisions required in this context center around the fact that these companies are forced to get by on a minimum of resources while at the same time having to cope with a high degree of uncertainty (information deficits). Nevertheless, venture capitalists and banks expect them to analyze their target markets comprehensively and to argue and act in accordance with the results of these analyses. This involves in particular: ✦ inference of the scaling potential of the market (TAM); ✦ inference of suitable revenue models; ✦ inference of indexed product features (mini-mum viable product); ✦ inference of market entry strategies; etc. This article briefly outlines the approach recommended to startups for properly analyzing their target markets, compares it to the approach startups actually take, and discusses what is feasible in real-world scenarios.

Going global in groups: a relevant market entry strategy?

PurposeThe purpose of this paper is to identify whether the new Chinese phenomenon of going global in groups represents a more advantageous market entry mode than the phenomena considered in previous studies.Design/methodology/approachIn this empirical research paper, the authors draw upon the literature in academic journals and books regarding the Chinese special economic zones overseas to analyze and compare collective internationalization (i.e. going global in groups) with traditional market entry modes as per the ownership, location and internalization paradigm (OLI) and transaction cost approach (TCA).FindingsThe authors identified that financial and diplomatic support provided by the Chinese Government has reinforced internationalization in groups, thereby minimizing some structural risks in host countries. Pre-operational and operating costs have been lowered or shared among group members, and weighted average cost of capital has dropped due to the availability of specific funding lines with subsidized interest rates.Research limitations/implicationsGiven the lack of available literature on the topic, the authors based their study of the collective internationalization of Chinese firms on very few cases, most of which represent market entry in African countries.Practical implicationsThe study calls attention to a new, more efficient and less risky characteristic of international entry modes, which implies that companies can reap multiple benefits by entering markets in global groups.Originality/valueAs literature addressing market entry modes focuses mostly on individual enterprises, this paper contributes to the identification of advantages in collective internationalization.

Impact of Social Influence and Green Consumption Values on Purchase Intention of Organic Clothing: A Study on Collectivist Developing Economy

The present study is an attempt to investigate the impact of green consumption values and social influence on purchase intention for organic clothing. Five hypotheses were developed with the support of relevant literature. These were tested with the help of primary data of young adult Indian consumers in the age group 20–40 years, collected through a structured questionnaire. Structural equation modelling (SEM) was used to test the hypotheses. The results of structural model revealed that attitude partially mediates the relationship of green consumption values and purchase intention for organic clothing. Further, social influence has no impact on attitude as well as purchase intention for organic clothing. The outcomes also indicated that for products at the introductory stages of the lifecycle, such as organic clothing, social influence does not play a vital role even in a collectivist culture. In such situations, consumers in a collectivist culture like India tend to exhibit individualistic behaviour. The results will be beneficial for designing market entry strategies for organic clothing brands targeting developing countries. The study also tries to extend our knowledge of understanding of departures from collectivistic behaviours in products which are in the introductory stages of the lifecycle in collectivist cultures.

Wal-Mart: The Store Wars

In early 2004, residents of Inglewood, California, a working-class community just outside Los Angeles composed primarily of African- and Hispanic-Americans, were preparing to vote on a referendum that would change the city charter to allow Wal-Mart to build a supercenter on a huge, undeveloped lot in the city. Walmart had put forward the measure after the city council refused to change the zoning of a sixty-acre plot on which it held an option to build. Numerous community and religious groups opposed Wal-Mart's entry and campaigned against the referendum. Walmart promised low-priced merchandise and jobs, but these groups were skeptical about the kinds of jobs and compensation that would be offered, the healthcare that would be provided to employees, and the broader impact Walmart would have on the community. Inglewood was a pro-union community, so there was also opposition based on Walmart's anti-union position. On April 6 Inglewood residents voted to reject the referendum by a margin of 60.6 percent to 39.9 percent. Though smaller, less organized, and with fewer resources than Walmart, this coalition of community and religious leaders had defeated the global retailing behemoth.After students have analyzed the case they will be able to (a) appreciate the importance of nonmarket factors to execute growth and market entry strategies, (b) understand how the decisions of political institutions depend on the issue context and the alignments of coalitions of interest, (c) formulate and assess strategies to overcome nonmarket barriers to entry.

MRT Micro: The CardioScope

Jan Bakke, founder and chairman of Norway-based MRT, was planning the U.S. market entry strategy for CardioScope–its electrocardiograph system. How could MRT get a foothold in the U.S. market against competitors who had been around for 50 years? How could he ensure that MRT would be able to defend itself once it entered the market? What segments should it target, and how should it position itself?To introduce the development of a strategic target marketing plan in a business-to-business setting. To discuss the analysis skills and problem-solving framework necessary for determining a segmentation, targeting, and positioning strategy; to offer the opportunity for a complete market and competitive analysis, including market segmentation, competitor strengths and weaknesses, and consideration of a competitive advantage for the new product; and to develop students skills in assessing the risks of a new product/market entry strategy.

INTERNATIONAL MARKET ENTRY STRATEGIES, ORGANIZATIONAL CHARACTERISTICS AND THE PERFORMANCE OF MANUFACTURING FIRMS IN KENYA

Purpose: The main purpose of this study was on the influence of international market entry strategies on the performance of manufacturing multinationals in Kenya. Methodology: The research design used in this study was descriptive research design. There are 213 Multinational Corporations in Kenya. Out of the 213 Multinational Corporations, 108 firms are in the manufacturing sector and are located in Nairobi. The population of the study was 108 firms. The sampling frame was retrieved from Mars Group Kenya. It is for this reason that the study considered 50% of the population. This yielded 54 firms. The study used a questionnaire as the preferred data collection tool. Descriptive statistics included frequencies and measures of central tendency mainly means and frequencies. Inferential statistics included regression modeling, t-test and Analysis of Variance (ANOVA).Results: Results indicated that manufacturing multinationals used various international market strategies to venture into business. These strategies include licensing; further indicated that the firms used these market strategy entries to a large extent. Regression results indicated that market entry strategies had an influence on performance of the firm (ROA)Unique contribution to theory, practice and policy: The study recommends that the management to evaluate the factors to consider when choosing an entry strategy thoroughly so as to make sure they know the market very well and that the management to evaluate the factors influencing the choice of market entry modes. This is to ensure that they choose the best mode.

When not investing in formal R&D, how do they manage innovative capacity? Evidence from Indian manufacturing firms

Drawing upon multiple theories, our research attempts to examine the role of various organisational characteristics that potentially influence distinct strategic choices for management of innovative capacities of firms. We use data from the World Bank with a sample size of 2,206 Indian manufacturing firms across industries collected from 20 industrial hubs. We examine how various organisational characteristics influence strategic choices and subsequently how these strategic choices affect the innovative capabilities of the firm. Results indicated that organisational characteristics play a significant role in its strategic choice for innovation. Our research contributes to the existing discourse on market entry strategies, technology transfer arrangements, and innovation management. Our research inherits a number of limitations such as omitted variables, selective firm level characteristics, mutually exclusive event that we have highlighted at the end before drawing tentative conclusions.

Market entry strategies and performance of Indian firms in Germany

This study explores the relationship between market entry strategies of emerging market firms and their performance in a developed market, by focusing particularly on Indian firms in Germany. Based on the learning theory of internationalisation, hypotheses were developed on the impact of different market entry modes on performance, and on the moderating effect of international exposure on this relationship. The hypotheses are tested against a dataset of 159 Indian firms in Germany by using secondary data. Multivariate regression analyses show strong interaction effects of international exposure, but only weak direct effects of different market entry modes on performance. The study contributes to the market entry literature in general and provides new insights to the analysis of market entry strategies of emerging market firms in particular.

Market entry strategies and performance of Indian firms in Germany

This study explores the relationship between market entry strategies of emerging market firms and their performance in a developed market, by focusing particularly on Indian firms in Germany. Based on the learning theory of internationalisation, hypotheses were developed on the impact of different market entry modes on performance, and on the moderating effect of international exposure on this relationship. The hypotheses are tested against a dataset of 159 Indian firms in Germany by using secondary data. Multivariate regression analyses show strong interaction effects of international exposure, but only weak direct effects of different market entry modes on performance. The study contributes to the market entry literature in general and provides new insights to the analysis of market entry strategies of emerging market firms in particular.

Market Entry Strategy of BlackYak in the US Outdoor Market: The M&A Strategy of Nau

Market Entry Strategy of BlackYak in the US Outdoor Market: The M&A Strategy of Nau

Offshoring, local market entry, and the strategic context of cross-border alliances: The impact on the governance mode

International alliances have been studied in considerable depth, but almost entirely as host market entry options. And while much global value production is done through international alliances, the organizational forms used to control dispersed value chains are often reduced to “make or buy”—that is, captive operations vs. market-based outsourcing. We examine how strategic purpose (vertical or offshore production vs. horizontal or production for local market entry) affects the choice of cooperative governance form. We contend that an offshore production role, as opposed to a market entry strategy, makes an alliance more likely to be governed as a contractual alliance than as a joint venture. Data on 261 cross-border alliances in the major appliances industry largely support our hypotheses. Further, strategic purpose moderates the effects of alliance activities and of the institutional environment of the host country on the choice of governance form.

SELECTING INTERNATIONAL MARKET ENTRY STRATEGY IN A HOTEL INDUSTRY

The article contains analysis of the process of forming the foreign market entry strategy, the factors that influence its development, and the systematization of strategic alternatives for entry strategy (indirect export, direct exports, licensing, joint ventures, ownership, direct investment). The complex of existing instruments of choosing the best strategic alternative for a particular company was researched. It was found out that the available tools are more suitable for manufacturing companies and do not take into account the specificity of services. In particular, such characteristics of services as intangibility and inability of their storage limit the use of strategic alternatives related to exporting. A possibility of adaptation the matrix for selection the strategy of entering the foreign market for service industries, especially for the hotel industry, was proposed. The application of the matrix for selection the entry strategy for a specific company from the UAE was illustrated.