Need a global market entry strategy? Ask these 12 questions


Chess board and pieces

Chess board and pieces

Taking your business to new global markets is a big decision. Once you’ve decided to embark on the journey, entering global markets can be a significant undertaking, and like any undertaking, it requires know-how.

One of the most important keys to success is preparation and planning. As the old adage goes, ‘if you fail to plan, you may as well plan to fail’.

You will need to carefully plan the where, when and how of entering new markets.

Where: Select the market to enter based on the demand for your product or service, the cost and tax implications, and the regulatory, economic and sociopolitical environments.

When: The timing of market entry is crucial.

How: Choose your method of market entry carefully.

Why strategic planning is so important

When entering a new market, your choices could include direct exporting, indirect exporting, transfer-related strategies and foreign direct investment-related strategies. Different markets and industries will require a different approach.

To select the best strategy, you need to consider the markets you have selected, the products or services you aim to bring to those new markets and your global objectives.

Choosing a strategy will guide your next steps, identify potential problems and help determine the costs involved.

Want to learn more about how to choose the most advantageous market entry strategy? Check out the FITTskills International Market Entries Strategy online course!International Market Entry Strategies Couse Banner

12 questions to ask 

  1. Business goals: What are our objectives for entering this market? Which strategy will best meet these goals?
  2. Size of business: Does our size mean some strategies might not be possible?
  3. Resources: Are there strategies we cannot use because of a lack of resources, such as direct investment?
  4. Product or service: Which strategy will align best with the product or service we’re offering?
  5. Remittance: How will each strategy impact the price we can get for our product/service? (For example, would direct importing be so expensive that our product will have to be overpriced?)
  6. Competition: What is the level of competition in the market? What entry strategies are our competitors using? Which strategy will give us the best competitive edge?
  7. Intermediaries: Will we need to work with intermediaries? Are there intermediaries we can use in the market?
  8. Control: How much control does our company need over activities? (For example, direct exporting enables a lot of control, whereas indirect importing does not.)
  9. Investment: How much investing will be required for market entry?
  10. Time: How much time is available to enter the market? Do we need a strategy that will provide returns quickly?
  11. Risk: What level of risk can our company face? Which strategies are the least risky?
  12. Flexibility: How much flexibility do we need? Can we withdraw from a market quickly if we need to?
This article is an excerpt from the FITTskills International Market Entry Strategies course. Excel in new markets by establishing and managing strategic global business alliances through use of research, evaluation, negotiation and continued communication.

Learn more!

About the author

Author: FITT Team

The Forum for International Trade Training (FITT) is the standards, certification and training body dedicated to providing international business training, resources and professional certification to individuals and businesses. Created by business for business, FITT’s international business training solutions are the standard of excellence for global trade professionals around the world.

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