Factors that Influence Entry Mode Choice in Foreign Markets

Zekiri, Jusuf; Angelova, Biljana
July 2011
European Journal of Social Sciences;Jul2011, Vol. 22 Issue 4, p572
Academic Journal
Organizations that operate in international markets need to make the most important decisions in order to select a best mode of entry choice into foreign markets. This paper attempts to clarify some of the issues arising in international market selection. A firm must assess before entering a particular market the potential factors that play a significant role during the process of decision making for the potential market selection. An overview of the current methodologies for market selection based on the literature on international marketing is provided. The main objective of the paper is to outline and discuss the relevant issues and challenges from a theoretical viewpoint related with the possible entry modes into international and global markets. This paper concentrates on secondary sources of research regarding the internationalisation of businesses. According to the previous literature, scholars have already found out some of determinants influencing the efficiency of foreign entry, such as: economic factors, political risk, legal factors, cultural factor, international experience, etc. A model can be outlined from the theoretical viewpoints about the advantages and disadvantage of each foreign market entry strategy discussed. One of the fundamental steps that need to be taken prior to beginning international marketing is the environmental analysis. There are uncontrollable forces which are external forces upon which the management has no direct control, although it can exert an influence. Internal forces are controllable forces upon which the management administers to adapt to changes in the uncontrollable forces. The conclusion will provide a short summary of identified key elements that need to be considered by management in choosing international markets and their foreign market entry modes.


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