International Market Entry Strategies Module 1 - Analyze the...

International Market Entry Strategies Module 1 -

Analyze the following situations and suggest which market entry

strategy is most likely to be successful.

Circle the type of strategy (trading or investing), and then identify the

specific market entry strategy.

While it is understood that many organizations will use several market

entry strategies, for the purposes of this exercise, choose only one.

Case study 1 - Market entry strategy: A mid-sized Italian cosmetics

organization wants to expand its market share, maximize profits, reduce

costs and possibly acquire new technology. It has identified Asia as an

area of growth for its products, with Korea as a base, and has noted that

manufacturing costs are low in that country. It wants total control over

activities, and is looking for a long-term investment. It is comfortable with a

high amount of risk and a large investment of capital, and is committed to

staying in the new target market.

What market Entry Strategy should this company use and why?

Case Study 2 - Market entry strategy: A small Canadian gourmet foods

company is looking to export to the U.S. for the first time. It wants to

maximize profits, but does not have a lot of resources to devote to this new

activity. It does not need to have control over the marketing and sales

activities. It is willing to make slight adjustments to its product for the new

market. It is ready to trade immediately and does not want to engage in

substantial risk. As this is a new activity, it wants to be able to stop

exporting quickly if the activity is not meeting its goals

What market Entry Strategy should this company use and why?

Case Study 3 - Market entry strategy:

A large South African mining organization wants to expand its operations

into Colombia, a country in which it has no current operations.