Exploring New Markets: Entry Strategies for Business Expansion Project

This project explores various strategies for entering new markets, focusing on direct exporting, international joint ventures, and trade intermediaries. It examines how direct exporting, utilizing distributors and agents, offers a low-risk, cost-effective approach, especially for smaller companies. The project then delves into international joint ventures as a means to overcome market entry barriers, providing expertise and business networks, particularly beneficial in markets with specific regulatory requirements. Finally, it analyzes the use of trade intermediaries, highlighting their established relationships and cost-saving benefits for companies lacking international market expertise. The project references relevant academic sources to support its analysis and recommendations for effective market penetration.

SLIDE 6 (125 words)
New Markets Entry Strategies
 Direct Exporting: The Company will be selling products directly into the new market by
using distributors and agents as representatives. The distributors and agents will be the
face of our company, and they will work closely with the head office to represent the
company interests in the global markets (Abdi & Aulakh, 2012, p. 480).
 International Joint Ventures: Entering into a joint venture with a foreign company
dealing with the clothing products will help our company to penetrate the new markets by
facing a few obstacles. Ideally, the international joint venture offers expertise about the
new market and provide necessary business networks (Calegario, Houston, & Bruhn,
2015, p. 49).
 Trade Intermediaries: Our Company will use trade intermediaries to save on the
resources that may be required to enter the new markets directly. Trader intermediaries
usually buy products at the lower rate and resell them in the global markets (Brouthers &
Hennart, 2012, p. 398).
SLIDE 7 (125 words)
Direct Exporting
 Directing exporting through distributors and agents in the overseas markets will offer our
business low-risk strategy of entering the international arena.
 It is cheap and easier to export directly in the new global markets instead of transferring
our production to the host country target markets.
 Our company is still small and therefore, relying on direct exporting will save it from
international markets entry resource commitment, excessive costs and risks associated
with the new market entry strategies.
 Our product, Trendy T-Shirt have not yet entered the international arena. Therefore, there
is less competition for our product in the new markets, and it will be easy to get it sold
through direct exporting.

 Direct exporting gives our company an opportunity to engage the natives in the host
country as company distributors and agents.
SLIDE 8 (125 words)
International Joint Ventures
 Establishing international joint ventures will enable our company to sell products in the
new markets without necessarily meeting the trade regulations in the host country.
 The company in the foreign market will cater for the business compliance requirements.
 International joint ventures will work best for the countries that tax foreign business
higher than the domestic ones. This strategy can be appropriate when entering the
Chinese market as well as other countries in the Asian continent.
 This strategy will the most suitable for the countries that require all business ventures to
have partial ownership of the domestic business partners (Matarazzo & Resciniti, 2014,
p. 60).
 Joint venture strategy will help our company to penetrate new markets with ease because
all the market operations and activities will be left to be handled by the foreign company.
SLIDE 9 (125 words)
Trade Intermediaries
 Our company is still young and new in the international market. Therefore, it will
appropriate to rely on entrepreneurial intermediaries to provide company products in the
new markets.
 Trade intermediaries have established relationships and contacts and hence will save our
company more resources that could have been employed on other strategies.
 The low price that our company will sell products to international intermediaries will be
cheaper than the cost of entering the global markets directly.
 Our Company lacks international market expertise. However, selling products to the
intermediaries at the reduced price will facilitate an entry strategy in the new markets.
 Trade intermediaries save our company from transportation and marketing costs that are
transferred to the global entrepreneur through reduced product prices.
REFERENCES

Abdi, M., & Aulakh, P. (2012). “Do country-level institutional frameworks and interfirm
governance arrangements substitute or complement in international business
relationships? Journal of International Business Studies, 43(5), 477–497.
Brouthers, K., & Hennart, J. (2012). Boundaries of the firm: Insights from international entry
mode research. Journal of Management, 33(3), 395–425.
Calegario, C. L., Houston, J. E., & Bruhn, N. P. (2015). Foreign Market Entry Strategies in the
United States/European Union Agribusiness Trade Context. International Journal of
Food and Agricultural Economics, 3(3), 47-61.
Matarazzo, M., & Resciniti, R. (2014). New Trends in Foreign Market Entry Mode Choices: The
Case of Italian MidSized Companies. Journal of International Business and Economics,
2(2), 57-70.