International market entry strategies

Entry mode selection is one of the most strategic aspects of international business. The selection of international market entry strategy is an institutional decision that comprises the choice of target market, entry mode, marketing plan, and control system. The right entry mode decision enables companies all assets to enter the targeted foreign markets. The entry modes can be grouped into three categories; export-based methods, non-equity methods (contractual entry), and equity methods (investment entry). The export-based methods can be either indirect export or direct export. The main forms of non-equity methods (contractual entry) are licensing and franchising, and equity methods (investment entry) are foreign direct investment, joint venture and acquisitions, and mergers. In this chapter, the internal and external factors of the target and home country will be analyzed in detail. The main features of entry mode are discussed in detail, and in the last part, factors that have a strategic importance are mentioned.