• Unit 6: International Market Entry Strategy

    As markets open up through increasing levels of free trade, companies and investors must develop competitive strategies to enter new international markets and create opportunities for themselves. This unit will highlight the strategies that many companies use to expand into new markets effectively.

    Completing this unit should take you approximately 2 hours.

    • 6.1: Direct Exporting

      Direct exporting is when a company exports directly to a consumer in another country instead of using a distributor or agent. Direct exporting has the advantage of increased profitability since companies have greater control over the process and fewer middlemen to take a share of the profits. However, there are also disadvantages, such as more time and resources needed to service end products and manage their delivery to the consumer.

      These are a few ways that you can use direct exporting to enter a new market:

      • Hire employees as sales representatives to travel to emerging markets and conduct business on behalf of the company.
      • Establish fully-owned local subsidiaries of the company to have full control over the business' operations in the local market.
    • 6.2: Mergers and Acquisitions

      Mergers and acquisitions are common for a variety of reasons. Companies may find that their competitors have unique capabilities or resources, and they see the opportunity to create a much more effective business organization when merging. Companies also often seek to acquire other companies that would add valuable resources or operations to the parent company.

    • 6.3: Partnering

      Typically, a company will want to establish partnerships with other companies that have track records in its target market and understand its culture. There are several things to keep in mind when establishing international partnerships, such as finding the right fit and establishing trust.

    • Study Guide: Unit 6

      We recommend reviewing this Study Guide before taking the Unit 6 Assessment.

    • Unit 6 Assessment

      • Receive a grade