Entrepreneurship: Entering the Global Market (Part 1)

Posted by The New Economics Education

Motivation For Global Market Entry
The advantage, of course, is one of the most significant reasons for entering the global market. Profits are negatively affected by the cost of preparation to enter the global market, which is too low estimate of the associated costs, and losses due to errors.

The difference between planned results and actual results may be quite large in the first attempt to enter the global market. It is usually recognized by employers. However, there are other things that trigger motivation more entrepreneurs to enter the global market.

The motivation is as follows:
1. Profit
2. Competitive pressures
3. Products or services that are unique
4. Excess production capacity
5. Sales declined in the country dalama
6. Unique market opportunity
7. Economies of scale
8. Advantages in terms of technology
9. Tax advantages

Strategic effects to Global Market Entry
While cause various types of environments and new ways of doing business, global market entry is also accompanied by a set of diverse and widespread problem, which is completely new. Physical and psychological proximity to international markets affect some global entrepreneurs.

Geographical proximity to foreign markets may not always provide a closeness that is felt by foreign consumers. Sometimes the variables of culture, language, and legal factors can create a foreign market is geographically close look a lot psychologically.

Selection of Market Competitors
With so many countries with prospects, critical problems for global operators are foreign market selection and entry strategies. Global entrepreneur must always remember that each data point does not make a trend, so the data are based on less than three periods should be interpreted with caution.

Data were collected and analyzed for the selection of the market will also be used in developing marketing strategies and plans go right. While some market selection models available, one good method to use a five-step approach.
1. Develop appropriate indicators
2. Collect data and turn it into indicators that can be compared
3. Assign weights to each indicator
4. Analyze the data
5. Choosing the right market from market rank

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Robert Smith said...

Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit". When a entrepreneur operate his business globally,that can be described as international entrepreneurship

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