Market Entry Strategies

Introduction Market door strategies refer to panaches of accessing a share of clients en masse in a clean environment. This paper entirelyow give an overview of different commercialize main course options available and their extent of applicability in the Abu Dhabi National Hotels Comp whatsoevers effort to enter the US market. It result also evaluate Abu Dhabi National Hotels Company by considering indirect market entry options in entering the US market. Market entry strategies Market entry strategies can be divided into two broad categories indirect and direct market.In choosing either of these, maven should oblige analyzed the social club in scope using various analytical tools. The analysis should focus on the companies strengths, weaknesses, opportunities available and threats that the company might be experiencing. It also involves accessing balancing of costs, control and risks. A company should be determined to operate internationally in the first place choos ing a market entry strategy. It should also be convinced also understand that she is about to strive a long term inflexible shipment whose withdraw would be costly.The results that these will deliver will determine, in the case of Abu Dhabi National Hotels Company, the best entry strategy (Jalan, 2004234). Direct entry strategy. export at that place are various modes of direct market entry. In the case, of Abu Dhabi Company exporting is not an option since it is a service delivery company. Besides, this strategy would result in reduced control and higher risks in enthronement. In addition, Abu Dhabi National has a higher asset base, therefore, can engage in a promising investment strategy (Jalan, 2004234).Licensing and Franchising Licensing and franchising can be a viable alternative if the Company wishes to have minimal financial and control commitments. In licensing, Abu Dhabi National Hotels will purchase trading rights from a potential partner in the US. This means it may not retain its current trademarks and material bodyer(a) intellectual property- it will outsource from the licenser. Licensing is whereby a local company grants a immaterial company the right to use its intellectual property.In licensing, the Abu Dhabi Company will incur costs of purchase of third party rights of which it will operate under. Franchising is whereby the Franchiser (parent company) grants a contradictory company (franchisee) the right to do pedigree in a prescribed way. In cases where a state of matter restricts importation, licensing would be viable means of penetrating such a market for foreign investors (Jalan, 2004235,236). Contract Manufacturing In depend for a means to foreign markets, contract manufacturing may also be an alternative.In this strategy, a company run multinational occupancy will contract foreign companies to produce such goods while it retains the duty of merchandising them. This would be un kindredly option for Abu Dhabi National Hotels since it is a service based company (Jalan, 2004235).. Management undertake In Management contracting, the international loyal supplies management knowledge for another in the foreign country. The expert advisory firm may not be stakeholder of the said company. Its role is to manage without the risk of injustice and benefit ownership.This would be beneficial entry tool for the Abu Dhabi because the local knowledge adaptable to the new environment there can be outsources locally (Jalan, 2004235). Indirect market entry strategy Indirect merchandiseing In indirect market entry, indirect exporting is one of the alternatives. In this method, a company manufactures its goods and allows other companies to export these goods to foreign countries. The main concern here is since expertise is obligatory in penetrating the new market a hired firm will do it in precision to promote its client.The firms desire after in this strategy are those with longtime the experience. This method also involves the lowest risk mover for companies with no foreign experience like in this case of Abu Dhabi National Hotels (Giligan1986101, Zisa, 200812). Direct Exporting This mode of accessing the foreign market involves high costs in transporting and marketing. The firm here manufactures goods in one country and then incurs the cost of marketing them abroad. This may take place through sales by foreign distributors, sales agents, overseas sales subsidiaries (Chee and Harris 1998294).Strategic Alliance Another alternative would turn out to be strategical alliance. In this strategy, the company would form an alliance with its potential competitors in the working environment. Conclusion The US is one of the worlds economic towers. Abu Dhabi National Hotel Company rationale can be justified by the fact that there is a potential market in America. The state also enjoys stable political science although currently there are uncertainties linked to the politics of this world military supe rpower.That is why franchising or licensing would be a likely method for the Abu Dhabi Hotel Company. Besides, strategic alliance and creation of mergers would cushion the Hotel Company from uncertainties in the foreign market. By fact, market entry strategies have a profound effect on how a firm may access a given market in the globe. They also influence the profits make and the risks that may turn out to threats in the future. Making such a concrete decision requires valuation of the companys current strengths, asset base, bargaining power and foreign business policies.With these at hand, a firm can make such a longtime commitment in the foreign market once the marketer has arrived at an appropriate entry strategy. (Gillespie et al, 2011247,248) References Andexer Thomas (2008) Analysis and Evaluation of Market adit Modes Into the Asia-Pacific Region. Norderstedt, GRIN Verlag Chee Harold, Harris Rod (1998), Global selling schema. London. Pitman Publishers Gillespie Kate, Jeann et Jean-Pierre, Hennessey H. David (2011) Global market. Mason OH. Cengage Learning.Gilligan Colin, Martin Hird, (1986) internationalist Marketing Strategy and Management Kent-Great Britain Mackays of Chatham Ltd. Jalan P. K. (2004) Industrial Sector Reforms In Globalization Era. New Delhi, Prabhat Kumar Sarma Tielmann Viktor (2010) Market Entry Strategies International Marketing Management Norderstedt, GRIN Verlag Yoshino Michael Y. and Rangan Srinivasa U. (1995). Strategic Alliances An Entrepreneurial Approach to Globalization Harvard, Harvard University Press Zisa Letizia (2010) Positioning and Opportunity judicial decision Report with Main Focus on Germany, China USA, New Zealand. Norderstedt, GRIN Verlag.Market Entry StrategiesCompanies have a wide range of possibilities for market entry strategies however, they need to choose the right one for for each one market, bearing in mind the particular circumstances (Johnston 1998101). When making marketing decisions, the service exporter should keep in mind some universal characteristics of run that set them apart from goods intangibility, degree of inseparability, human intensiveness, propriety knowledge, perishability, and heterogeneity (Reif 199719). Depending on the service, one particular quality may be more applicable than the others.The combination of services intangible characteristics, along with other qualities, expand both the possibilities and obstacles for international market entry strategies of service providers, and any market entry strategy must be accompanied by a clear intellectual of what delineates the difference between a service and a goods export (Reif 199720). There are several turn out market entry methods and channels that a service exporter can utilize without the resource commitment necessary for foreign direct investment.Every service provider must decide which method of market entry will provide the greatest chance of market penetration. According to Reif, a service firms s uccess will depend on four factors such as alliances with local companies, the ability to protect intellectual property, advertising, and marketing strategies and access to financial resources. Also, what marketing venue the firm decides to take will at long last depend upon its internal capacity and creativity drive, and tenacity of its overseas partners.Market entry methods consist of all the possible alternatives to developing a business presence in a foreign market. Three major(ip) market entry strategies available for the service provider are exporting, contractual agreements and foreign direct investment (Reif 199721).A business deciding to offer its crop outside its domestic home market has various entry strategy options such as exporting the product already produced for the home market licensing the product idea or production supplies to a third party who operates across national boundaries or in overseas markets franchising arrangements such as McDonalds outlets in many countries joint venture between a domestic company and a foreign company or government, or strategic alliance to form partnerships across national boundaries the use of trading companies, that provide links between buyers and sellers in different countries or foreign direct investment possibly including the acquisition of an established business which is long term commitment to a non-domestic market and is resource-demanding (Dibbs 2004220).The degree of commitment begins, as it were, with direct selling overseas (exporting), and ends with a Gordian business investment in foreign markets such as a production facility or international joint venture (Copper 1998 322). According to Copper, firms will engage heavily in international business operations tend not to make distinction between home and overseas business, just like for example, Zeneca, the major UK pharmaceuticals producer, which makes this a plank of its mission statement.Regardless of a firms market entry decision, the particular strategy that drives a services firm must correspond with the legal framework for business that exist in a targeted country, and the requirements concerning the scope of practice and legal structure of business should be carefully examined (Reif 199721). Choice of market entry depends greatly on variable factors such as current regulative policy and the extent of domestic competition.Relationships are going to become increasingly international with inter-firm cooperation spanning a multiplicity of cultures, languages, and outlooks, thus, the international marketing in the future will almost need more competencies in confabulation and relationship management than even in the immediate past.List of ReferencesCooper, C. L., & Argyris, C. (1998). The Concise Blackwell Encyclopedia of Management. New York Blackwell Publishing.Dibb, S., & Simkin, L. (2004). Marketing Briefs A Revision and Study Guide. New York Butterworth-Heinemann.Johnston, S., & Beaton, H. (1998). Foundat ions of International Marketing. London Thomson Learning EMEA.Reif, J., Ditterich, K. M., Larsen, M. G., & Ostrea, R. A. (1997). Servicesthe Export of the 21st Century A Guidebook for US Service Exporters. New York World Trade Press.Stone, M. A., McCall, J. B. (2004). International Strategic Marketing A European Perspective. New York Routledge.