Making the ‘‘right’’ entry decisions heavily impacts the company’s performance in
global markets. Granted, other strategic marketing mix decisions also play a big role. A
major difference here is that many of these other decisions can easily be corrected,
sometimes even overnight (e.g., pricing decisions), while entry decisions are far more
difficult to redress.
We can hardly overstate the need for a solid market entry strategy. Entry decisions
heavily influence the firm’s other marketing mix decisions. Several interlocking decisions
need to be made. The firm must decide on: (1) the target product/market, (2) the
corporate objectives for these target markets, (3) the mode of entry, (4) the time of entry,
(5) a marketing mix plan, and (6) a control system to monitor the performance in the
entered market.2 This chapter covers the major decisions that constitute market entry
strategies. It starts with the target market selection decision. We then consider the
different criteria that will impact the entry mode choice. Following that, we will
concentrate on the various entry strategy options that MNCs might look at. Each of
these will be described in some detail and evaluated.We will then focus on cross-border
strategic alliances. The final two questions that we consider deal with timing-of-entry
and divestment decisions.
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