During the last few decades, globalization has increased competition amongst firms and has triggered the willingness of most domestic companies to enter into foreign markets. Large, middle sized and small companies are using different ways to reach to their targeted market segments, increase returns, and ensure growth (Goldman & Nieuwenhuizen, 2006). Different approaches offer these companies varied opportunities to adapt modes necessary in the foreign markets and in finding new distribution and supply chain channels.
Choosing a foreign market entry strategy involve considerations of costs, alignment of the strategy to company’s objectives, time element, and foreign market environment and structure, amongst other elements. Effective international strategic entry policy enables a company to compete in foreign markets and in achieving its fundamental objective (Lymbersky, 2008). Developing a strategy for a single market may work in most foreign markets. International strategy, just like any other strategy, is an ongoing process, and as such the strategy adopted requires a continuous update. Following are some of the commonly used foreign entry strategies. Of critical consideration is that not every strategy work for every company, and as such companies should be objective on the strategy chosen (John & Allen, 1998).
