Market entry

Market entry strategy

A market entry strategy is to plan the a method of delivering goods or services to a target market and distributing them there. when importing or exporting services, it refers to establishing and managing contracts in a foreign country.


Many companies successfully operate in a niche market without ever expanding into new markets. Some businesses achieve increased sales, brand awareness and business stability by entering a new market. Developing a market entry strategy involves a thorough analysis of potential competitors and possible customers. Some of the relevant factors that are important in deciding the viability of entry into a particular market include Trade barriers, localized knowledge, price localization, Competition, and export subsidies.

Timing of the market entry

"What countries to enter and when mainly depends on the finanical resources of a company, the product lifecyle and the product itself."
The different strategies available are:


Some of the most common market entry strategies are: directly exporting products, indirect exporting using a middleman, and producing products in the target market.
But also:

Market entry and trade risks

Some of the risks incurred when entering a new market and start domestic or international trade include:

While some companies prefer to develop by their own their market entry plans, other outsource to specialised companies. The knowledge of the local or target market by those specialized companies can mitigate trade risk.


  • Reviving Traditions in Research on International Market Entry, Po Li (Auteur), T. Li, JAI Press, 2003 ISBN-10: 0762310448 ISBN-13: 978-0762310449
  • On durable goods markets with entry and adverse selection,Janssen, M. Roy,CANADIAN JOURNAL OF ECONOMICS,2004, VOL 37; NUMBER 3, pages 552-589 ISBN ISSN 0008-4085


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