{slider How to penetrate foreign markets}

As long as the company has chosen the “best” markets for its products, the next decision involves the method for penetrating the target markets.

The factors that must be taken into account in order to make this decision are as follows:

  • The competitive advantages of the products in the foreign markets and the potential risks.
  • The company’s financial dynamics.
  • The restrictions and obstacles that the company may come across during this effort.
  • The kind of product or service to be exported.
  • The special aspects of each market.

In general, the methods for introducing a product to a foreign market can be considered to be the following:

  1. Direct exports.
  2. Exports through third parties.
  3. Forming a partnership with domestic or foreign companies.

Direct exports consist in selling the products directly from the company to the final customer. The main advantages of this method involve securing a higher profit margin due to the lack of intermediaries, the possibility to set low prices, and the direct contact and knowledge of the company’s final customers/consumers.

There are also disadvantages, such as that the company must possess an excellent knowledge of the market, and that the visibility of the product and the company rises slowly.

How to penetrate foreign markets