Market Entry Strategies

Introduction Market entry strategies refer to modes of accessing a share of clients en masse in a new environment. This paper will give an overview of different market entry options available and their extent of applicability in the Abu Dhabi National Hotels Company’s effort to enter the US market. It will 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, one should have analyzed the company in context 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 before choosing a market entry strategy. It should also be convinced also understand that she is about to undertake a long term inflexible commitment 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, 2004:234). Direct entry strategy. Exporting There 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 investment. In addition, Abu Dhabi National has a higher asset base, therefore, can engage in a promising investment strategy (Jalan, 2004:234).

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 other intellectual property- it will outsource from the licenser. Licensing is whereby a local company grants a foreign 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 foreign company (franchisee) the right to do business in a prescribed way. In cases where a country restricts importation, licensing would be viable means of penetrating such a market for foreign investors (Jalan, 2004:235,236). Contract Manufacturing In search for a means to foreign markets, contract manufacturing may also be an alternative.
In this strategy, a company operating multinational business will contract foreign companies to produce such goods while it retains the duty of marketing them. This would be unlikely option for Abu Dhabi National Hotels since it is a service based company (Jalan, 2004:235).. Management Contracting In Management contracting, the international firm supplies management knowledge for another in the foreign country. The technical advisory firm may not be stakeholder of the said company. Its role is to manage without the risk of loss 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, 2004:235). Indirect market entry strategy Indirect Exporting 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 necessary in penetrating the new market a hired firm will do it in precision to promote its client.
The firms sought after in this strategy are those with longtime the experience. This method also involves the lowest risk factor for companies with no foreign experience like in this case of Abu Dhabi National Hotels (Giligan1986:101, Zisa, 2008:12). 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 1998:294).
Strategic Alliance Another alternative would turn out to be strategic 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 world’s 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 politics although currently there are uncertainties linked to the politics of this world military superpower.
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 made and the risks that may turn out to threats in the future. Making such a concrete decision requires evaluation of the company’s 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, 2011:247,248) References Andexer Thomas (2008) Analysis and Evaluation of Market Entry Modes Into the Asia-Pacific Region. Norderstedt, GRIN Verlag Chee Harold, Harris Rod (1998), Global Marketing Strategy. London. Pitman Publishers Gillespie Kate, Jeannet Jean-Pierre, Hennessey H. David (2011) Global Marketing. Mason OH. Cengage Learning.
Gilligan Colin, Martin Hird, (1986) International 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 Assessment Report with Main Focus on Germany, China USA, New Zealand. Norderstedt, GRIN Verlag.

Don't use plagiarized sources. Get Your Custom Essay on
Market Entry Strategies
Just from $13/Page
Order Essay
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Live Chat 1 763 309 4299EmailWhatsApp

Order your essay today and save 15% with the discount code GINGER