Chapter 17
Export market entry
option strategies and
culture
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Topics covered in this chapter
• Introduction – Market selection criteria.
• E commerce.
• Indirect and direct exporting.
• Market environment.
• Market entry strategy.
• Market entry options.
• Trade barriers.
.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
• Culture.
• Cultural analysis by country/region and economic focus.
• Visiting the overseas market.
• Chartered shipbrokers/freight forwarders/institute of
export.
• Management of quality/international credit clubs/local
buying of offices.
• Case study on developing customer relations.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Introduction – market selection criteria
The exporter must fully comprehend the thirteen factors in the market
selection criteria and devise a sustainable strategy. International
entrepreneurs must give special attention to the contents of this
chapter to develop a viable export strategy
E commerce
The exporter must be able to empathise with the buyers needs and be
flexible in response to develop synergy with the buyer/importer. Note
the process of conducting business overseas is electronically driven
and the procurement strategy.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Indirect and direct exporting
Note the advantages of both indirect and direct exporting and their
suitability for differing circumstances. Note the marketing mix
involvement.
Market environment
Exporters must comprehend the market in which they plan to enter
and its structures. Note the nine points to examine in the analytical
evaluation.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Market entry strategy
Exporters must have a strategic focus in market[s] selection and
examine the fourteen points listed and the seven key areas in the life
cycle of the international distributor.
Market entry options
A total of 17 market entry options are examined in depth and the
discerning international enterprenure must consider each to decide
which is the ideal choice. Companies exporting in a range of countries
may opt for a different entry to reflect market conditions.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Options examined include: agents/distributors/company
acquisitions/concessionaries/confirming houses /export
houses/franchising/free trade zones/government
procurement/leasing/joint ventures/licensing/management
contracts/piggybacking/strategic alliance/ trading companies.
Each entry option involves a differing company resource input –
finance/personal/marketing/production/logistics/servicing/
technology - IT - management – which must be evaluated. A very
important part of the chapter to comprehend and essential to have
a plan with a strategic focus.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Trade barriers
Note the eight reason for trade barrier formulation and the range of
tariff barriers – 8 – and non tariff barriers – 8. important to evaluate
prior to the market entry choice decision.
Culture
An important area to comprehend – the culture of the market entry
country chosen. Some 14 areas evaluated. Exporters may choose to
research the history/heritage/government politics of the country/region.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Culture analysis by country/region and economic focus
A range of countries are examined including
China/Japan/India/Russia/Malaysia/South Korea/ West Africa.
EU markets are examined in chapter 18 and may other markets
pages 21 –27. Important for the exporter to analyze the market
before choosing to enter it.
Visiting the overseas market
Essential to have adequate preparation when visiting/conducting
business in the overseas market. Some 16 points examined
regarding the overseas visit.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Chartered shipbrokers/freight forwarders/ institute of exports
An overview of professional institutes engaged in trade and shipping
and professional courses.
Management of quality/international credit clubs/local buying
office
A range of areas to evaluate for the discerning international
entrepreneur.
Case study on developing customer relations
Evaluate the key points identified in this case study and research
further other case studies. It extols the practice of empathy.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Key concepts
Ensure you understand the following:
• Introduction – market selection criteria especially 13 factors listed and
to have a strategic focus.
• E commerce – and its benefits/strategy and need to develop
synergy.
• Indirect and direct exporting – particularly merits of each and 13
points listed.
• Market environment – and particularly the 9 points in its evaluation.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
• Market entry strategy – its strategic formulation reflecting the
14 points listed.
• Market entry options – and the merits of each and the interface with
company resources involved to implement the chosen option – a key
area to comprehend.
• Trade barriers and the implications of each.
• Culture analysis by country/region and economic forecast – a wide
range of countries examined which require analysis and further
research for the chosen country/region.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
• Culture analysis by country/region and economic forecast – A wide
range of countries examined which requires analysis and further
research for the chosen country/region.
• Visiting the overseas market and 16 key points to address in pre–visit
and post–visit analysis.
• Chartered shipbrokers/freight forwarders/institute export and their
role.
• Case study developing customer relations and the key points
involved.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch
Conclusion
One cannot stress too strongly to take a strategic view and
professional analysis of the market entry option chosen and the
interface with the country/region selected. Full use should be
made of the cross page references found in this chapter relative
to other parts of the book.
Use with Export Practice & Management
Fifth Edition by Alan Branch ISBN 1–84480–081–4
© 2006 Alan Branch