This is the age of globalization. Where, trade is running globally in the world. So that, every company should go globally to achieve goal. Before going global, a company should consider the following factors:
Political Risk: It arises from political instability. Its sources can be change in government policies, civil disorder, agitation, terrorism and restrictions. It can lead to loss or nationalization of property.
Market Access: barriers to market entry limit market access. It can be due to reservation policy for nationals, local content requirements and balance of problems. The competition should be examined. Regional cooperation agreements should be considered.
Cost Structure: It is the costs of factors of production, such as land, labour, capital. Wages rates and tax conditions are important considerations. Economics of scale should be possible.
Logistics: This includes storage, handling, inventory management and transportation. Logistics cost are important considerations for market entry. Infrastructure in host country should be adequate in term of power, transport, communication, servicing facilities and good governance.
Foreign Exchange Regime: Exchange risk resulting from changing rated and control procedures need to be considered.
Marketing programme: The marketing programme for global market should be carefully considered. It should be adapted to local environment.
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