How to Develop a Market Entry Strategy

Introduction 

New entrants in the international markets face numerous challenges without the best strategy. However, a company can use numerous ways in entering international markets. In some cases, one may use direct exporting as the most appropriate approach while others may consider a joint venture while others consider license manufacturing (Keegan, 2014). However, every company must determine numerous factors since it will influence the choice of stratagem. While some strategies will increase costs associated with venturing into new markets, some will help in offsetting costs. After an organization decides to enter an overseas market, numerous options are available. As the manager in the Strategic Planning Department of a multinational corporation, I believe the most appropriate strategy is the home replication approach, which best suits a firm selling heavy-duty work boots. 

Home Replication Strategy 

It is noteworthy to point out that market entry strategies vary in terms of risk, cost, and the level of control, which is usually exercised over them. Firms, however; require to remain cautious when entering international markets. Home replication strategy refers to the global replication of home-based competencies. The competencies that can carry to the global arena distribution approach, production scales, and brand power. For a company to operate at the multinational level, or simply become a multinational corporation, it must have a brand base. When using home replication, the company is always capable of achieving numerous objectives at the international level. Such a company must centralize product improvement in its home country. After product differentiation is over at the home level, the innovation is transferred to be used in the local market to capture and extend additional value. With such a strategy, product modification is never done because of the distinctive nature of the products. 

In short, when a company chooses this strategy, it will only need to duplicate competencies that the company enjoys in the home country for expansion into a foreign market. Since the company will not need to localize its products, it enjoys the strengths of reducing costs on research and development (Korey, 2007). Additionally, since it takes the form of franchising, exporting and licensing, the home replication is always easy to implement. 

Characteristics of Home Replication 

The company will be able to increase the sales of work boots because it does business from a secondary to domestic business. In most instances, such a company will consider the process as an opportunity for generating or increasing its sales for its work boots. The domestic product lines such as the boots then enter the market with the possibility of capturing the market by extending the product lifecycle. Although the products are designed with domestic customers in mind, the work boots are sold in the international market as a way of extending its success in entering a new market. In essence, the firm expects little flow of knowledge from international operations. 

One most important aspect is the d esignation of assets, which include the allocation of beneficial resources among various uses. Asset designation emerges as an issue because the assets of the general public are in constrained inventory, while human needs are normally boundless, and because any given asset can have numerous uses. Most cases planned economies and in the open segments of blended economies, the choices concerning asset appropriation are political. Within the constraints of existing innovation, the point of any streamlining office is to apportion assets in a way that gets the greatest conceivable yield from a given blend of assets. An excellent motivation behind why organizations need to consider global advertising is to get a bit of the more than 10 trillion dollars of merchandise and ventures that are exchanged across the outskirts every year. For the organization that business sectors itself appropriately on a worldwide level, this can prompt a gigantic lift in income. 

In addition to the fact that businesses have an extraordinary chance to develop their income on the off chance that they advertise themselves globally, however, they will likewise run into a ton of hindrances that are not commonly experienced in residential showcasing. At the point when you are promoting your item or administration universally you should likewise mull over class structure since it fluctuates generally from nation to nation. Most nations have an upper, center and lower class, yet the quantities of individuals in these classes can be altogether not the same as a nation to nation. 

One of the advantages of this approach is that when a firm decides to enter into an international market using home replication the cost of production goes down. This is so because the firm will be able to minimize costs because of centralized production ( Tielmann, 2010) . It is further easy to implement because of its low cost and opportunity to expand into the foreign unexplored territories. In most cases, the company selling these work boots will not need to implement manufacturing services but rather import just finished goods. In the process, it will need to employ a marketing approach that is used at home where the products are manufactured. The home replication approach is likely to leverage those advantages in the home country. The only major advantage is that a company using this strategy may need to adjust to international division. 

Mission  

The mission of the company will be to offer essential, quality, and stylish products at affordable prices. In the process, it will require to engage its new market to address the needs of its consumers in the international market. It will also further focus on delivering quality goods with a supply chain that supports the minimization of costs while improving quality. 

SWOT Analysis 

Strengths: 

Since the company will be the only offering such work boots, will improve its performance based on its brand equity in the home country. 

It will be able to compete effectively while offering low and consistent goods. 

Weaknesses: 

Overreliance on its previous manufacturing services in the home country. 

Focusing less on promotional activities 

Opportunities: 

It has the chance of expanding to become a large firm 

It will also be able to expand its product line and have a competitive edge in the new market. 

Threats: 

Pressure from other existing firms offering similar products 

If it chooses to enter an international market where other firms may face the challenge of pricing. 

Strategic Goals 

One of the strategic objectives is to expand and increase its sales at an exponential rate. Firms that are successful in the domestic market may use similar tactics to go global as long as it produces world-class products. In the process, it will require to employ tactics that allow the firm to gain from economies of scale, gain global customers, and be able to distribute risks. 

Control Framework 

Freedom in the international market is always limited but companies strive to address other political, operational, and discriminatory risks among others. Nevertheless, a company must adhere to control issues associated with its new market. 

Conclusion 

Based on the analysis, a home replication strategy is the best for a firm venturing into an international market to sell work boots. This firm will be able to take advantage of the numerous opportunities available in the global market. 

References 

Keegan, W.J. (2014). “Global Marketing Management”, 4th ed. Prentice-Hall International Editions. 

Korey, G. (2007). “Multilateral Perspectives in International Marketing Dynamics”. European Journal of Marketing, Vol. 20, No. 7, pp 34-42. 

Tielmann, V. (2010). Market entry strategies: International marketing management; [scholarly research paper] . München: GRIN Verlag GmbH.