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Sunday, December 25, 2011

The solved assignment has been prepared for “What are the different market entry strategies if a company wants to enter international markets?” It is the solved assignment of SMU MBA for MB0046 (Marketing Management). You should take a view of Micro Environmental Forces of Marketing also.

Companies should evaluate each country against the market size, market growth and cost of doing business, competitive advantage and risk level before entering in international markets.

There are the checklists of country evaluation that should be evaluated by companies before entering in any international market.

Checklist for Country Evaluation:

  1. Political Rights
  2. Civil Liberties
  3. Control of Corruption
  4. Government Effectiveness
  5. Rule of Law
  6. Health Expenditure
  7. Education Expenditure
  8. Regulatory Quality
  9. Cost of Starting a Business
  10. Days to Start a Business
  11. Trade Policy
  12. Inflation
  13. Fiscal Policy
  14. Consumption
  15. Competition

Companies should evaluate these eliminates with their weightages and they should give score also for those elements. Companies can enter in international market from any one of the following strategies.

  • Exporting
  • Licensing
  • Contract Manufacturing
  • Management Contract
  • Joint Ownership
  • Direct Investment


It is the technique of selling the goods produced in the domestic country in a foreign country with some modifications.


According to Philip Kotler licensing is a method of entering a foreign market in which the company enters into an agreement with a license in the foreign market, offering the right to use a manufacturing process, trademark, patent, or other item of value for a fee or royalty.

Contract Manufacturing:

Company enters the international market with a tie up between manufacturer to produce the product or the service.

Management Contracting:

In this type a company enters the international market by providing the knowhow of the product to the domestic manufacturer.

Joint Ownership:

A form of joint venture in which an international Company invests equally with a domestic manufacturer.

Direct Investment:

In this method of international market entry Company invest in manufacturing or assembling.


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