How to Select a Market Entry Strategy

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How to Select a Market Entry Strategy. Trying to break into a new market can be tricky, and many companies fail every day. Proper planning can go a long way toward making your attempt successful, which is why selecting a market entry strategy should be at the top on the list of things that small companies must do before moving forward.

Know what you're up against. Every company should perform a SWOT analysis before trying to enter any market. You need to analyze your company's strengths, weaknesses, opportunities and threats to make sure that the move is a sound one. Such an analysis can help you identify any barriers you may encounter when trying to enter a new market.

Devise ways to overcome the barriers of entry, which could include scale of production and pricing, or something more complicated like legal matters and trade tariffs. Each case is specific, so look at the different opportunities and tools at your disposal to get around these barriers. This step is crucial in selecting a market entry strategy, because you need to make sure that all your bases are covered.

Map out your resources and then devise a plan. If you want to get into international markets, for example, you could go into the exporting business if you have the resources available. If you lack the resources yourself, you can still consider joint ventures or offshore production as a way to get into the market.

Decide on a pricing strategy. It may be beneficial to take a cut in profits in the beginning to establish yourself as a leader in the market. Look at your sales projections to decide what works best for your company and market.

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