HomeThe Elements Of A Market Entry Strategy

The Elements Of A Market Entry Strategy

Market entry strategies are composed by businesses that want to expand their areas of operation into new zones. Business leaders naturally focus their efforts on building an organization that tailors to the needs, wants, and tastes of the market they venture into.

This means that many businesses are geographically limited by their initial local ambitions. Market entry strategies help to ease a company into a new role – aiding in the transition from a national to an international enterprise. Here are four elements that should make up any good market entry strategy pursued by an expanding business.


It cannot be overstated just how important research is to the success of any market entry. All businesses looking to expand need to understand what their Unique Value Proposition – otherwise known as a Unique Selling Position – will be in their new area of operations.

In order to ascertain this information, they need to have a deep understanding of what drives the market they wish to expand into. The size, demographics, needs, and desires of their new target audiences must be carefully mapped out. Many companies use big data analysis to quickly develop an in-depth understanding of foreign markets before committing to more in-person research – often led by a third-party agency familiar with the territory.


Marketing to a foreign audience cannot be done without thorough research and careful consideration. Markets across the world are often subject to subtle visual and social conventions that hold a great deal of sway.

In many instances, it may be worth hiring an experienced market entry agency to handle marketing efforts in territories that your marketing team is unfamiliar with. These agencies familiarize themselves with the markets that their clients wish to infiltrate and create marketing strategies that reflect the conventions of said markets.


It is vitally important that the parameters of a market entry strategy are understood by planners in all departments of a company. Market entry strategies differ significantly from export strategies. They are geared towards the creation of a sustainable operation based overseas – not just the exporting of products to be sold or distributed by third parties.

Business strategists need to understand exactly what mode of entry they intend to make use of in their future territory. They may seek to partner with other companies native to the country they are entering. They may seek to establish a conventional physical presence. They may seek to make the most out of the inherent transnationality of the internet to sell products and services abroad. The specific parameters and aims of a market entry strategy will define the tactics used to bring it to fruition.

Financing And Tax

In order to successfully move into a foreign market, it is crucial to follow laws and conventions established there. Working out the most financially sound way of adhering to tax laws in a new area of operations is never simple. Similarly, a company must find funding in order to finance an expansion.

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