Global market entry strategies offer both opportunities and threats, impacting on managers decisions - Essay Example

However, each strategy comes with its own set of opportunities and threats that need to be fully understood before the usefulness of the strategy can be ascertained. The first and perhaps the simplest strategy for a company would be to enter the new market with a regional office that controls the operations of the company as a local company in the region. However, the product itself and the manner in which it is marketed to the people must be inline with local tastes otherwise the chances of success may become rather bleak (Keegan, 1989).

The advantage of entering the market with a local office under the control of the company is simply that the company can be in direct contact with consumers while retaining full control over marketing and sales. However, in such situations, managers may have to decide whether the cost incurred in going at it alone is a reasonable and feasible decision. A far cheaper option for managers would be to let another company market and sell the product or service of their company. Such local partnerships may have considerably less expensive while allowing the company to gain from local insights and market knowledge (Anderson and Coughlan, 1987).

However, selecting the right partner that can carry the right message to the market becomes critically important in such situations. The decision which needs to be made in such situations is the selection of the right partner and the exact manner in which business is to be conducted with the partner. Of course, in certain countries a joint venture may be the only option if there are government restrictions on how foreign companies can operate or how they can conduct business (ATC, 2008). Entry into a foreign market may also be made simpler if the company is ready to make a significant investment and simply takeover the control of a local company