International Market Entry Modes and Strategies

This assignment delves into the world of international market entry modes and strategies. Students are tasked with examining different approaches companies use to enter foreign markets, taking into account the influence of institutions and competitive environments. The analysis should encompass various strategic considerations such as cost leadership, differentiation, and focus, alongside factors like compulsory licensing, price controls, and R&D alliances. The goal is to understand how firms strategically navigate international expansion challenges.

Running Head: Global Marketing
Select harvest
Global Marketing

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Table of Contents
Introduction......................................................................................................................................2
Summaries from Assignment 2.......................................................................................................3
3.0 Screening of market selection....................................................................................................4
3.1 Stages of market selection......................................................................................................4
3.1.1 Reason to choose country................................................................................................4
3.2 Objectives...............................................................................................................................5
4.0 Alternative market entry............................................................................................................6
4.1 Target market selection and positioning................................................................................6
4.2 Market selection process........................................................................................................6
4.2.1 Alternative market entry modes......................................................................................6
4.3 Positioning Strategy...............................................................................................................7
4.4 Alternative generic strategies.................................................................................................7
5.0 Recommendations......................................................................................................................8
5.1 Entry mode.............................................................................................................................8
5.2 Target Market.........................................................................................................................8
5.3 Positioning Strategy...............................................................................................................8
5.4 Generic Strategy.....................................................................................................................8
Conclusion.......................................................................................................................................9

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References......................................................................................................................................10

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Introduction
Australia is the largest consumer of natural foods and dry fruits as various foods producing
companies use these materials to manufacture the breakfast as dry fruits are commonly included
in cereals. Select harvest is the big manufacturer of the dry fruits and other related product and it
is situated in Australia. While evaluating their market, including European countries, they have
expanded their business in various parts of the globe and now the organization is planning to
move towards new countries for the purpose of growth. Austria has been chosen in across the
globe by reviewing the demand of the nuts and its related products there. Hence, a certain
analysis will be done under this report in order to gain the knowledge in relevance with the
market condition of Austria. The International marketing plan will include various sections from
the purpose of expansion in the Austrian country.

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Summaries from Assignment 2
According to the part one of the assignment, it was observed that Select Harvest is the biggest
manufacturer of dry fruits across the globe and while conducting the market research, it was
analysed that Austria is the largest consumer of dry fruits and related products. Hence, Select
Harvest selected the Austrian market for the purpose of business expansion. Prior Austria was
used to import the same products from US market. Rather importing goods, Austrian economy
was capable enough in fulfilling their demands but after the Second World War, a condition of
their economy gets adverse. And due to this, they started importing dry fruits and other goods
from the international markets. While selecting the particular country for the purpose of
expansion, various countries such as European countries, Turkey, Germany, and other countries
are the major exporters of nuts in Austria. Due to drought conditions in the United States, they
failed to fulfil the demand of the Austrian people. Hence, this could be the great advantage for
Select Harvest of Australia in terms of setting up their market presence in Austria (Akaka, Vargo
& Lusch, 2013).

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3.0 Screening of market selection
For this, Select Harvest has conducted the strategies such as market research, situational analysis,
etc. In order to attain the market position in the new market conditions, an organization will
perform following steps:
3.1 Stages of market selection
 Global marketing objectives: Under this stage, appropriate organizational objectives are
examined in terms of the expansion. According to the targets, objectives, and goals
described by management, with the help of adequate set of strategies, perfect market will
be chosen for Select Harvest. In this scenario, market is already selected in the previous
assignment hence; available factors in the Austrian market will be determined in order to
develop their policies according to present market factors (Andersson & Xiao, 2016).
 Factors of market selection: For the purpose of market selection, certain important
factors such as environmental; political, legal, tax systems, etc. need to be analysed in
order to meet the standards set up by the host country and to avoid any kind of glitch in
the trading activities (Ang, Benischke & Doh, 2015).
 Initial Screening: Under this, marketing team of the Select Harvest needs to perform the
activity in which all the irrelevant markets will be disqualified. For performing this
function, certain quality measures and standards are built up by the management of the
Select Harvest in order to choose the most appropriate and adequate market for the
purpose of expansion and growth. That market which will not be able to meet the criteria
developed by the organization will be disqualified from the process of market selection
(Angeloska-Dichovska & Mirchevska, 2017).

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 Shortlisting of market: Amongst the selected markets after performing the screening
method, most adequate markets will be selected. According to this scenario, consumption
of nuts and its related products will be the major source through which organization will
be able to analyse an adequate market for the purpose of expansion of business in the
international market (Armstrong, et. al., 2015).
 Assessment and Selection: Under this step of market selection, the market will be
chosen which will fulfil all requirements; standards, benchmarks, etc. built up for the
purpose of expansion in the international market (Atzori, Iera & Morabito, 2014).
3.1.1 Reason to choose country
Select Harvest is involved in the manufacturing and distribution of nuts across the Australia and
other parts of the globe. To increase the profitability of the organization, certain analysis was
performed in order to determine the most suitable market to expand the business of the
organization in order to enhance their profitability. Hence, while reviewing the various parts of
the globe, Austria was selected on the basis of highest consumption of nuts and its related
products as well as its market conditions were meeting all the policies built up by the
management of the organization (Bond & Saggi, 2014).
3.2 Objectives
Select Harvest has adopted the policy of SMART objectives in order to meet the goals of the
organization. The current goal of the organization is expanding in Austria in order to enhance
their profitability and the presence in the international market. Following are the SMART
objective developed by Sleet Harvest:

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 S: The objectives developed for the purpose of expansion of the business in international
market, objectives should be set up on the basis of organization’s capability (Burton &
Cross, 2015).
 M: The objectives set up by the organization needs to be measurable enough so that,
value could be analysed from those objectives. For instance, growth of 20% in the total
revenues was expected by the effect of expansion in Austrian market for Select Harvest
hence; objectives set up by the management needs to be capable enough to acquire the
percentage of growth expected (Cavusgil, et. al., 2014).
 A: Objectives should meet the proficiency of the organization’s members which will help
them to attain targets easily.
 R: Objectives are set up on the assumptions hence; the assumption should be made on the
basis of realistic market conditions (Czinkota & Ronkainen, 2013).
 T: This aspect of setting up objectives for the organization requires that those should be
achievable within the adequate time frame and adequate time should also be allocated for
attaining certain objectives.

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4.0 Alternative market entry
This is the method through which organisation could select the alternative market entry strategy
apart from an adequate way to enter into the particular market. This option is set up with an
assumption of failure of option one and in those conditions that alternative option could be
adopted in order to avoid the disturbance in the activities of the organization (Demangeot,
Broderick & Craig, 2015).
4.1 Target market selection and positioning
Following are the entry mode options available with Select Harvest in order to enter into
Austrian market for expansion purpose:
 Licensing: This is the most appropriate market entry mode in terms of exposing the
business in the international market. This mode helps the organization to enter into the
particular market legally. Under this market entry mode, documentation part is necessary
and along with the documentation, Select Harvest needs to submit all the details
including their initial capital investment, number of employees exported from their
country, etc. to the authorised body of Austria in order to maintain the transparency as
well as to remove the disturbance in the trading activities (Eteokleous, Leonidou &
Katsikeas, 2016).
 Direct Exporting: Under this mode of entry, Select Harvest can send their products as
per the demand or the order in Austria. For this, they need to contract with a mediator or
the firm involved in the same business as of Select Harvest.

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 Franchising: This mode of entry requires adequate goodwill in the international market.
This is trending entry mode in the international market. Mostly adopted by food chain
industries and in this process, franchisees need to pay certain amount of money in the
form of fees, royalty, etc. against the permit given by franchiser to use their trademarks,
copyrights, etc. (Greckhamer & Gur, 2015).
4.2 Market selection process
As Austria has been selected amongst the various countries of globe for the purpose of expansion
and to enhance the profitability of the organization, strategies such as SMART objectives and
another set of marketing techniques need to be adopted for the purpose of expansion in the
Austrian market.
4.2.1 Alternative market entry modes
For the purpose of taking entry in the Austrian market, the most suitable option will be licensing
because it provides the organization official license to enter the market and for performing the
trading activities. In certain situations such as Austrian government does not provide the permit
to the organization to enter into their market. Hence, in such cases, organization needs to be
ready with an alternative option and that alternative option will be direct exporting. This market
entry option will require contacts in the host country in order to analyse the demand of the nuts
and its related products and then as per the demand of the products produced by Select Harvest
in the host country, exporting procedure will be conducted (Choi & Yeniyurt, 2015).
4.3 Positioning Strategy
Under this step, Select harvest needs to adopt those strategies through which organization will be
able to establish its market position. Apart from this, organization needs to adopt some effective

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promotional as well advertisement strategies in order to develop an efficient image in the
Austrian market. There are certain approaches, through which organization will be able to set up
its position in the new market conditions i.e. using product’s characteristics, price-quality
approach, applications approach, product-user approach, product-class approach, cultural symbol
approach and competitive approach (D. Banker, Mashruwala & Tripathy, 2014).
Amongst these approaches, Select Harvest can use price-quality, product’s characteristics
approach and the competitive approach in their operations to set up their effective and efficient
image in Austria.
4.4 Alternative generic strategies
Focus, cost leadership and the differentiation are three approaches of generic strategies and these
were invented by Michael Porter in 1985 with a view to gain some competitive advantage.
 Focus: According to this approach of generic strategy, organization needs to focus on
the characteristics of the product to gain the competitive advantage. In other words,
organization needs to analyse its competitor products' specialties and as per that, more
enhanced product should be manufactured in order to increase the demand for the
products (Fletcher & Crawford, 2013).
 Differentiation: Providing something more or unique from the competitors helps the
organization to gain competitive advantage. Adopting this approach, organization could
provide some attractive offers and additional benefits on the same price will help the
organization to gain competitive advantage.
 Cost leadership: According to Tanwar (2013), Select Harvest needs to reduce its
manufacturing cost by adopting advanced techniques. There are two options available in

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this technique for increasing the sales and demand of the product by reducing the selling
price by cutting their cost of the product or by reducing their profit margins. Adopting
both these techniques will help the organization to gain competitive advantage in
Austria.

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5.0 Recommendations
5.1 Entry mode
As per the scenario of Select Harvest Company of Australia, it is recommended that they should
enter into the Austrian market through official entry procedure i.e. licensing. From the perception
of keeping the alternative market entry strategy, direct exporting has been recommended.
5.2 Target Market
Through reviewing the political conditions and the other relevant factors including micro and
macro environmental factors of Austria, it has been recommended that this country is
economically strong, safe and free from political risk factors. Rather suffering from recession,
economic conditions of Austria are not affected and being a member of European Union is the
biggest advantage in terms of expanding their business.
5.3 Positioning Strategy
After reviewing the conditions of Austrian market, it is suggested to Select Harvest that using
product’s specifications and the price-quality approach of positioning strategy will be most
adequate and result oriented in terms of setting up effective position in the Austrian market.
5.4 Generic Strategy
Austria is a well-developed nation and their economic conditions are going in positive way
except recession conditions. Hence, recommendations for Select Harvest in terms of expanding
their business in Austrian market will be done through adopting cost leadership and focus
approach should be adopted in order to gain the competitive advantage.

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Conclusion
In the limelight of aforesaid report, international marketing plan has been designed for Select
Harvest for the purpose of expansion of their business Austria which is a member of European
Union. They are involved in the prediction of nuts and its related products whereas Austria is the
country with huge demand for nuts. Nuts and its related products are used in Austria for making
cereals and breakfasts. In order to enhance the profitability of the organization through
expanding in international markets, organization has adopted some effective marketing
strategies. Additionally, entry modes were discussed in order to enter into Austrian markets,
recommendations were also provided to the Select Harvest in terms of adaptation of the
strategies for the purpose of expansion of the business in international market.

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