Thursday, October 13, 2011

Market Entry Strategies

For every new firm, it is necessary to adopt some strategies for entering in market and give competition. This post would give students an idea how to write assignment or homework related to market entry strategies. In this, Polish market entry is taken as a case study for entry of a bottled water product. To enter into the polish market of bottled water and give competition to the market leader, firm can opt for some strategies such as joint venture, strategic alliance, and franchising (Boone and Kurtz 2011).

Joint venture: Firm can select the joint venture strategy because it is very difficult for an individual firm to give competition to market leader alone. Joint venture is the strategy in which two existing firm agree to do the business together for finite time period. Through the joint venture, firm can able to give competition to the market leader. As the competition is very stiff and need a huge amount of capital, with the help of joint venture firm can distribute the capital and can easily enter into the market. In past few years, bottled water has come under some criticism because of impurity in water. But nowadays, bottled water has captured very large part of market environment (Kupper 2009).

So, to maintain the position and give competition to the market leader, it will be more suitable for the firm to come up with the joint venture.

Strategic Alliance: After analyzing the overall market scenario, another strategy, which firm can adopt is strategic alliance. This strategy is also very much suitable for the firm to make position in new marketplace and give competition to the leading firm of bottled water. In case of joint venture, two firms need to get combined in a single entity. In case of strategic alliance, two firms decided to perform a common business to meet the critical conditions of the market scenario but both these firms remain independent. This strategy avoids the conflicts among members due to difference in cultural as well as working environment of both the firms (Glover and Wasserman 2003).

With help of strategic alliance, efforts of both firms can be able to give more competition and earn more benefit instead of putting individual efforts. Market leader of bottled water has penetrated the wider area of overall market, so to compete with them needs extra skills and knowledge that can be shared through strategic alliance.

Franchising: By taking the franchise of one of the top most brand of bottled water, firm can able to attract more customers. Initially with the name of renowned company of bottled water, firm can make position in the market place. After understanding the overall market scenario, it will be easier to give competition to the market leader. Franchising is the strategy in which owner of firm distribute their products through the dealers known as franchisee. Franchisee takes the license from the franchiser to carry out business with his name (Keup 2007).

With the help of franchising, firm can easily operate their business activities and capture the wider area of market. After making the position in market through franchising, franchisee can establish a new firm and a give competition to the market leader. This strategy is also very much suitable for the firm to enter into the new market of polishing of bottled water (Mathews 2011).

From the above, it is concluded that, before entering in the market, firm has to analyze the overall market scenario and competitors and on the basis of that strategies should be selected.

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Boone, L.E. and Kurtz, D.L. (2011) Contemporary Marketing, 15th ed. USA: Cengage Learning.
Glover, S.I. and Wasserman, C.M. (2003) Title Partnerships, joint ventures & strategic alliances Business law corporate series. New York: Law Journal Press.
Keup, E.J. (2007) Franchise Bible: How to Buy a Franchise Or Franchise Your Own Business, 6th ed. UK: Entrepreneur Press.
Kupper, V. (2009) The Use of Joint Ventures as a Strategic Tool for Multinational Companies. Germany: GRIN Verlag.
Mathews, J. (2011) Street Smart Franchising, 2nd ed. UK: Entrepreneur Press.