Unformatted text preview: ternational markets are according to Hollensen (1998) a key
strategic issue for companies in today’s rapidly growing and internationalizing market.
Root (1994) states that entry strategies help to set the objectives, goals, resources and
policies in order to guide the company’s international business activities to reach
sustainable growth on the international market. He further emphasizes that it is important
to realize that a company’s entry strategy is not a single market plan, but a combination of
several market plans.
When companies consider entering new foreign markets they have to have a specific set
of strategic alternatives that varies by different target markets, and the different entry
mode alternatives. Managers need to consider how their company best can enter a
specific market and take into consideration the risk and environmental factors that are
associated with the different entry strategies (Deresky, 2000). The foreign market entry
selection is highly significant for the company’s future performance and survival on the
View Full Document