Considering the fact that initial decision to enter in foreign market of companies is to increase sales which results in increasing profit, the business must pick an entry mode which promise higher return on investments, therefore internationalization process will result as a success. The objectives of this paper were to figure out modes of entry in foreign market and to critically evaluate their advantages and disadvantages, the objectives have been fulfilled. Although there was limit number of research and as a result generalization cannot be made, this report cannot conclude that there exists a best choice of entry mode for a particular businesses when they decide to internationalize, plus each advantage and disadvantage mentioned in part two of the paper cannot be used for all enterprises, they may be contrasting for separate industries.
1. Introduction Marketers focus on desires and wants of individuals, groups and societies. They focus on individual demand, market demand and the trend in society. Nowadays companies are establishing their businesses in the oversea markets. Mathur (2012) points out that international marketing involves a firm-level marketing practices across the border and aims at identifying market targets, entry mode strategies, marketing mix, and making the right decisions to compete well in global markets.
The firm that is planning to have the operations across the border will have to choose the country that they are planning to visit. Anderson (1997) argues that the strategic market entry decisions forms a very important part of an organizational strategy. The decision to go international is part of the internationalization strategy of the firm. Multinational Corporations that desire to have international operations will find the strategy to go international, the mode of entry is very important. Even though there are studies which have shown that the main effect of being pioneers in a market promises superior performance in terms of market share and profitability than the late movers, Luo (1997) and other researchers have found out that the effect of the first mover may be conditional and will depend on the mode of strategy that is used (Isobe, & Montgomery, 2000).
Flexibility is a requirement in globalization, once conducting business with another company or individual in another region or in the international arena, this may be considered to add to globalization. Advance technology and the hypercompetition condition faced by new venture forces, a mandatory flexibility to adjust and adapt. “.. Responsiveness and product adaptation are becoming increasely critical for business success, proximity to foreign customers is an important driver of overseas investment” (Shenkar and Luo, 2007 pp 13). Reference Child, J. (2005) Organization: contemporary principles and practice.
For growing economies, Foreign Direct Investment (FDI) has momentous advantages over equity and debt capital flows. Most of the foreign firms that start their conduct of business in other countries, they not only come with capital but transfer modern technology, promote human capital by training the host country’s employees according to the change of technology to those countries, and this is the key for the development of the host country. According to author Direct Investment replicates aspire of acquiring an enduring awareness by an inhabitant body of one economy that is the direct investor in a venture that is occupier in another economy which is called the direct investment enterprise. The “lasting interest” entails the continuation of a long-term relationship between the direct investor and the direct investment enterprise and an important level of authority on the management of the latter. Direct investment involves both the initial transaction instituting the relationship between the investor and the enterprise and all succeeding capital transactions between them and among affiliated enterprises; both incorporated and unincorporated (Duce & Espana, 2003).
By adapting to the international markets, the firm would increase its standards and increase reputation for taking into consideration changing business environment. Cons 1) Takes time in planning- A multinational firm have to invest time to adapt its distribution strategy abroad by partnering with local firm. 2) Language barrier- Understanding the various languages may be a challenge. 3) Execution- The actual process of executing the flow of the product from the point of origin to the point of consumption through adaptation may be a challenge because of low demand for product.
Target allowing a third part to use sales data and consumer information, gives them the opportunity to create a strong marketing strategy and increase revenue at a minimum cost. While Global consumer marketing and consulting firm could create a long term relationship with Target Corporation if this partnership yielded positive results. Furthermore, showing other high level organizations to see the impact they have on Target Corporation and see a need for that same plan for themselves creating revenue growth thought positive credibility and results. However, the use of consumer personal information from consumer view, could lead to identity theft, breach of privacy and other security concerns. Possible causing consumers to shift their loyalty and business elsewhere.
So in each foreign nation, the company is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. Before that we should know that marketing can defines as ‘the process of finding out what people need and want, then producing a product or service which meets those needs and wants, and doing better than the competitors’ . On the other hand, International marketing can be ‘marketing activities in which a business reduces reliance on intermediaries and establishes direct involvement in the countries in which trade takes place’ . There are many benefits to marketing a company's products or services globally, but the decision to go international must be made carefully, because there are a lot of problems or challenges that companies can face it to be internationally. However, the advantages of being internationally are: Increasing sales and profits with additional revenues.
So, in order to ensure the existence of a company, it must have the ability of introducing new product in to the market to replace old products that are declining in the market. This serves as the mechanism for the growth and existence of a company. BENEFITS OF SUCCESSFUL NEW PRODUCT According to Ewah 2008 one main benefit of the new product development is to develop technical knowledge and realize commercial objective by building innovation capacity that would increase the company's product ability to stay on competitive in an ever dynamic business environment. There are also a number of benefits of introducing new product successful in the markets which will impact the company's profitability. This includes: 1.
LIC must follow best investment practices and must have a strong asset management company to maximize returns. LIC should streamline its grievance redressal committee for efficient and effective service. To increase its market share LIC should come up with new innovative products to offer great variety or choice to the customers and also make improvement in the quality of service. In present stiff market competition, a focus on niche segment can be an effective way of marketing for LIC to differentiate from the competitors. Focus should be on design attractive product schemes with attractive premium structure to suit varied requirements of the investors by considering their financial position.