June 07, 2015

Considerations For Global Market Entry

Followings are the main factors that should be considered before going global

1. Political Risk

Before going global, a company should analyze the political risk of the host country. Political instability, government policies, civil disorders etc. may lead to loss. So, these factors should be properly studied.

2. Access To Market

This is another important factor that should be considered before going global. There may be several barriers to market entry. Host country may have the reservation policy for its nationals, a problem in balance of payment, different regional cooperation agreement etc. These barriers may limit market access.

3. Cost Structure

The cost of factors of production, tax rates, wage rates etc. should be considered before going global. So, cost structure is another considerable factor global market entry.

4. Logistic Costs

Logistic costs should be considered before going global. Storage, transportation, power, management costs must be considered. There should be an adequate infrastructure at reasonable cost.

5. Foreign Exchange

Foreign exchange rates also need to be considered before going global.

6. Marketing Programme 

A company should adopt marketing program to local environment. Product strategy, price strategy, promotion strategy, and distribution strategy should be suitable for the host country.