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A model of Market Entry
and Expansion
Stimuli:
Proactive
Reactive
Change Agent
and
Intermediaries:
External
Internal
Information
Experience
Perception
Concerns:
•Information
•Mechanics
•Communication
•Sales Effort
•Service
•Delivery
•Regulations
Corporate Export
Stages:
Awareness
Interest
Trial
Evaluation
Adaptation
Time
Domestic focus
Further
International
Expansion:
•Franchising
•Licensing
•Foreign Direct
Investment
Proactive Stimuli
• Profit advantage
• Unique Products
• Technological Advantage
• Exclusive Information
• Economic of Scale
• Market size
Reactive Stimuli
 Competitive Pressure
 Overproduction
 Declining Domestic Sales
 Excess Capacity
 Saturated Domestic Markets
 Proximity to Customers and Ports
External Change Agent and
Intermediaries
 Demand
 Other Firms
 Domestic Distributors
 Banks
 Chamber of Commerce
 Governmental Activities
 Export Intermediaries
-Export Management Companies
-Trading Companies
Internal Change Agents
 Enlighten Management
 New Management
 Significant Internal Event

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Market entry and expansion

  • 1.
  • 2. A model of Market Entry and Expansion Stimuli: Proactive Reactive Change Agent and Intermediaries: External Internal Information Experience Perception Concerns: •Information •Mechanics •Communication •Sales Effort •Service •Delivery •Regulations Corporate Export Stages: Awareness Interest Trial Evaluation Adaptation Time Domestic focus Further International Expansion: •Franchising •Licensing •Foreign Direct Investment
  • 3. Proactive Stimuli • Profit advantage • Unique Products • Technological Advantage • Exclusive Information • Economic of Scale • Market size
  • 4. Reactive Stimuli  Competitive Pressure  Overproduction  Declining Domestic Sales  Excess Capacity  Saturated Domestic Markets  Proximity to Customers and Ports
  • 5. External Change Agent and Intermediaries  Demand  Other Firms  Domestic Distributors  Banks  Chamber of Commerce  Governmental Activities  Export Intermediaries -Export Management Companies -Trading Companies
  • 6. Internal Change Agents  Enlighten Management  New Management  Significant Internal Event