Wk3 - Int Business

Digital entry mode

A way for a company to enter a foreign market using digital tech/platforms instead of physical presence

Why digital entry modes are rising

Changes in technology, consumer behavior, and globalization

Virtual presence

Operating in a foreign market via a website or app (e.g. SHEIN)

Online marketplace

Selling through platforms like Amazon, Alibaba, or Shopee

Platform complementor

Selling via a managed store like Apple App Store or Taobao

Managed ecosystem

Participating in a platform's system, e.g. Uber drivers or Salesforce plugins

Main advantage: cost/risk

Little to no physical infrastructure needed, lowering investment and risk

Main advantage: market testing

Companies can test multiple markets quickly before committing more resources

Main advantage: data

Direct customer feedback allows fast, continuous improvement

Main advantage: scale

Can reach millions of global customers quickly

Challenge: regulation

Each market has different laws on data privacy, sales, and tax

Challenge: localization

Websites, service, and marketing must adapt to local language/culture

Challenge: trust

Hard to build customer trust without a local reputation or presence

Challenge: competition

Popular platforms are crowded, so standing out needs strong branding

SHEIN example

Global fashion retailer with no physical stores, relies on digital presence and social media

Shopify example

Platform that helps businesses sell cross-border with built-in localization tools