Global Market Entry Strategies

Flashcards focusing on key terms and concepts related to global market entry strategies.

Political Distance

The difference in political systems, stability, laws, and regulations between countries that can affect trade relations.

Early Mover Advantage

Benefits gained by a brand that enters a market before its competitors, such as brand recognition and consumer loyalty.

Late Entry Strategy

A market approach where a brand enters after early movers, often requiring improved products or lower prices.

Scale of Entry

The decision regarding whether to enter a market on a large or small scale, affecting risk and market share.

Mode of Entry

The various strategies companies use to enter foreign markets, including exporting, licensing, franchising, joint ventures, and direct investments.

Marketing Mix Gap

The difference in marketing strategies necessary to address consumer needs in a foreign market compared to the company's home market.

Consumer Research

The process of gathering information about consumers' values and preferences, crucial for successfully entering new markets.

Cross-Border Competition

Competition that occurs between companies from different countries, often regulated by policies such as tariffs or quotas.

Pioneering Risks

The potential costs and challenges faced by companies that are the first to enter a new market, including educating customers and dealing with regulations.

Cultural Factors

Elements of culture that influence consumer behaviors and preferences, requiring businesses to adapt their marketing strategies.