Question for IM - Assignment Example

International Marketing Global Strategic Alliance how it differs from other entry modes? Global strategic alliance isusually created when a company desires to edge into a related business in foreign country especially in markets where government prohibits imports so as to guard domestic industry. Alliances are formed between two companies each based in their home Nations for specified time. The main focus is to share in ownership of newly formed alliance in order to maximize competitive advantages in their joint markets.

This strategy is different other modes where a company enters a foreign market as an individual company. 2. Why is choosing the most appropriate market entry and development strategy one of the most difficult decisions for the international marketer? Choosing market entry is very difficult for businesses because it is very for a product to enter a foreign market. Developing and nurturing market in foreign countries takes time. In international marketing, the idea that drives most businesses is based on the premise that it is better to be successful in or two markets rather than spread a company’s resources of human and financial and fail in ten markets.

It is difficult for international marketer to identify markets that are successful because of the fact that in every market that an international marketer ventures, there is competition. In addition, it is often difficult for international marketer to choose appropriate market entry since the timing of when to enter the market may be miscalculated. For instance, a company may enter in a foreign market as a first mover; for the first time in that country with goods or services of your company that has merits and demerits.

Being a first mover in the market does not guarantee the company success in foreign markets. Furthermore, it is always hard and hectic to start educating the market about your product and developing a strong promotion strategy that suits with the local culture and ensuring that the new product is well established and adapted to local market needs. Additionally, the issue of go home or go big does not have a place in international marketing. Therefore, the scale at which an international marketer decides to enter the market, the scale at which you enter a market and develop a market strategy is about the extent to which the company is willing to commit in that particular market.

Therefore, international marketer finds it hard to determine the scale of entry in that foreign market depending on the company’s ability to commit certain resources in order to develop a suitable market entry strategy.