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Analysis for the most appropriate marketing strategies that ought to be generated by the
organizations for the invasion of new markets, while illustrating the main obstacles and
challenges that would probably be met by the companies in the new markets
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Prepared by:
Supervised by:

2016/2017

Table of Contents
Introduction
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3
I
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3

II
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5

Critical discussion of the issues and challenges
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9
Bibliography
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Throughout
continuous competitive strategies and actions, firms become able to survive in the
market and to grow their shares
...

The management of large and small companies should be continuously engaging in
defensive and offensive marketing plans and strategies because of the ongoing rivalry
(Yannopoulos, 2011: P
...
Entering new markets can be conducted in different
approaches
...
One of the main challenges that would be facing the
foreign companies is considered to be the variations within the cultures (Kilsgård, Nero,
& Sundin, 2008: P
...
The importance of the marketing plan would be based on the
identification of the operational, personnel, and financial plans, which would be required
by the organization for the purpose of the achievement of the organizational goals within
the market
...
The formulation of the marketing
strategy would be requiring full and extensive analysis for the organizational
environment and market, as well as the competitive factors (Hillestad , 2013, P
...

Throughout the following research, there would be analysis for the most
appropriate marketing strategies that ought to be generated by the organizations for the
invasion of new markets, while illustrating the main obstacles and challenges that would
probably be met by the companies in the new markets
...


Page 2 of 11

Literature review
I
...
One of the

main advantages of operating in an international or foreign market is considered to be
the enhancement of the organizational capabilities of the efficient resources
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These actions ensure that the organization would be
reducing the costs of the labor and naturally reduces the costs of the production (YU,
2011: P
...
However, according to Bradley (1991), the invasion of new markets may
lead to different risks and problems, which would be out of the control of the
organizations and their marketing teams, such as; the changing and conflicting cultures,
political systems, and economic structures

(YU, 2011: P
...
There are different

techniques and strategies that can be followed by the international organizations,
throughout their invasion of new foreign markets
...
According to Terpstra V
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(2001), the exporting strategy is
considered to be the one with the lowest risks, as the strategy eliminate the initiate
financial investments that should be pursued by the organization, while the direct
investment can be considered as the one with the highest risks
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1007)
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The first stage included the market selection, which
focus on the identification of the most profitable market that the organization should be
Page 3 of 11

targeting
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On the other hand, the second stage is
based on the Entry mode selection, which identifies the most appropriate strategy that
would be deployed for invading the new market
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7)
...
This incidence had been regarded as a
result of the organizational motivation to focus on the markets, whose cultures and
customers and considered to be close to the current ones of the company
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25)
...
(2004), the organizations should be considering the entry
mode selection to be a continuous learning process, which would be enhancing the
organizational knowledge and awareness of the market that would be invaded
...
Throughout the identification of the markets’ main
opportunities and threats, the risk of market failure will diminish (Ridder, 2010: P
...

Another factor that motivates the international organizations to enter new markets is
considered to be the intense competition within their home markets
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This would be deployed by the international organizations as
points of parity for ensuring that their competitors would not hold a competitive edge
over them
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5)
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29)
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Challenges that face companies in new markets
One of the main challenges that face the organizations during their invasion of

new markets is considered to be the poor legal framework or structure, which reduce
the ability of the international organizations to operate effectively
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On the other hand, according to
Bond and Tykkyläinen (1996), the lack of readiness or the awareness of the new
markets of the organizational operations, services, and products can be one of the most
complicated factor that the international organizations meet (BARASA, 2013: P
...

According to Dencker et al
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There
should be a huge studying for the businesses and their interactions, models, and
competitive factors within the new markets, before taking the decision to invade the
market
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72)
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For
instance, the recruitment of local talents from foreign markets would be ensuring that
the organizational decisions would be suited to the unique characteristics of the local
markets
...
This would reduce the risks faced by the international organizations (YU,
2011: P
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Page 5 of 11

Difficulties in rules and regulations may eliminate the organizations capabilities to
enter new markets
...
The lack of
appropriate trusted legal system would be raising the risks that are facing organizations,
which would be affecting their decision to enter the markets (HURDUC & NIŢU, 2011:
P
...
Another important challenge that face international organizations within their
market entry processes is considered to be based on the need for the creation of a
network of suppliers, retailers, or partners, which would be essential for ensuring the
sustainability of the organizational operations and the enhancement of the
organizational effectiveness in delivering the highest values for the customers
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According to Moen et al
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This had been facilitating the
building of effective supply chains and networks based on an international scale
(Ridder, 2010: P
...


Critical discussion of the issues and challenges
The high rate of crime and the absence of an effective legal system in Russia
made the running of international businesses in Russian markets, nearly impossible
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20)
...
The
extreme trade barriers that are being set by Brazilian government reduced the
capabilities of the international organizations to benefit from the Brazilian customers and
markets (Schoen, 2009: P
...

Understanding the local needs and customers’ satisfaction should be enhanced
by the extensive market research prior the invasion decision
...
This mistake led to the drop of sales and the very low revenue by IKEA in its
early years in USA
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1009)
...
For instance, regarding international banks, some of the rules and
systems of the banks would be differentiated among countries, for matching the rules
and laws of the hosting countries
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48)
...
For instance, during the intense
competition between Goodyear and Michelin within the United States of America,
Michelin attacked Goodyear Company in North America, throughout cutting the prices
and enhancing its sales and market share
...
Instead, Goodyear Company extremely reduced the prices in
European markets, which led to tremendous losses for Michelin Company
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5)
...
Markets of developing and less-developed countries are
considered to be lacking the appropriate systems that would be developing the skills of
their labor, which eliminate the capabilities of the international organizations to sustain
or strengthen their operations in the markets
...
The CEO of Microsoft South Africa focused on
the development of the social and economic environment within South Africa for
ensuring a better future for Microsoft South Africa
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189)
...

However, many of the technology-oriented companies, which operate in the
technological products, had been expanding their internet and other information
systems, into foreign markets, which allowed them to avoid the majority of the
challenges that are facing the companies with non-technological products (BARASA,
2013: P
...
On the other hand, the financing and funding services within the host
markets are considered to be one of the main challenges for businesses
...
These would be deriving the foreign and international businesses away
from the African markets, such as; Mozambique (Games, 2011: P
...


Page 8 of 11

Summary
To summarize, it should be ensured that the invasion of new markets can be
regarded as one of the most important decisions that are being conducted by the large
and small organizations, for the purpose of ensuring their survival in today’s competitive
markets
...
In addition, the
organization should be identifying the most effecting marketing strategies that would be
enabling the organization to overcome the entire obstacles within the entering
processes
...
Entering new markets can be conducted throughout various
approaches, while the most common approach, nowadays, is considered to be the
exporting,

especially

throughout

the

technological

channels
...
It is recommended that the small and
medium entrepreneurial organizations should be focusing on the digitalization of their
organizations for the purpose of ensuring that they will be able to maintain an
appropriate positioning within the international markets, which would be seeking the
lowest capital and investments required
...
For instance, the restructuring of the banking sectors, the development of
the information systems infrastructures, the development of the skills of the labor, and
facilitating the governmental regulations and rules would be ensuring the growth of the
international organizations to move to their markets
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Page 9 of 11

Bibliography
Aswegen, S
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, Botha, S
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(2008: P
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Fresh
Perspectives: Industrial Psychology: Stellenbosch Custom Publication
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Retrieved from
https://books
...
com
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(2013: P
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FOREIGN MARKET ENTRY STRATEGIES USED BY
MULTINATIONAL PHARMACEUTICAL FIRMS IN KENYA
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Retrieved from
http://chss
...
ac
...
pdf
Games, D
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9)
...
Development Planning Division Working Paper Series No
...

Retrieved from http://www
...
org/EN/AboutUs/Publications/Documents/DPD%20No23
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pdf
Hillestad , S
...
41)
...
Jones & Bartlett LLC
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jbpub
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pdf
HURDUC, N
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(2011: P
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Forms and Strategies of the Banks to Enter on
a Foreign Market
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7(560), pp
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Retrieved from http://www
...
ectap
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pdf
Kilsgård, D
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, & Sundin, E
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2)
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Kristianstad University
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divaportal
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pdf
PĂUNESCU, C
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72)
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Management
& Marketing Challenges for the Knowledge Society (2013) Vol
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1, pp
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Retrieved from http://www
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ro/pdf/articole/301
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(2010: P
...
Characteristics of a successful marketing strategy for Indian
software companies to enter the Western-European market
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Retrieved from http://essay
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nl/60862/1/BSc_Martijn_de_ridder
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(2009: P
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Challenges New Zealand Companies Face when Entering
the Brazilian Market
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Retrieved from
Page 10 of 11

http://aut
...
ac
...
pdf?seq
uence=3
Twarowska, K
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(2013: P
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INTERNATIONAL BUSINESS STRATEGY
- REASONS AND FORMS OF EXPANSION INTO FOREIGN MARKETS
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Retrieved from http://www
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net/ISBN/978-961-691402-4/papers/ML13-349
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, & Kąkol, M
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7)
...

Toknowpress
...
toknowpress
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pdf
Yannopoulos, P
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1)
...

International Journal of Business and Social Science Vol
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13
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com/journals/Vol
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_13_Special_Issue_July_2011/1
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(2011: P
...
Foreign market entry strategies: A case study for a Chinese pump
manufacturer
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Retrieved from https://images
...
net/wpcontent/uploads/2016/01/18134805/international-marketing-swot-analysis

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