Global Market Entry: Core Concepts

Go Global: Your Core Questions Checklist

Thinking of expanding your business internationally? Answer these first.

1. WHY Go Global? (Your Motivations)

• Market Seeking: Are you looking for new customers or growth?
• Resource Seeking: Do you need cheaper labor or raw materials?
• Efficiency Seeking: Can you achieve bigger economies of scale?
• Competitive: Are you following a major customer or trying to preempt a rival?

2. WHERE to Go? (Market Attractiveness & Risk)

• Market Size & Growth: Is the market big enough to matter? Is it growing?
• Competition: How tough is it? Can you win?
• Political & Economic Risk: Is the country stable? Are there trade barriers?
• Cultural Distance: How different is it? (Affects adaptation needs.)

3. HOW to Enter? (Entry Mode Spectrum)

• Low Commitment/Control:
  • Exporting: Ship from home. (Good for testing, low risk).
  • Licensing/Franchising: Let local partner use your IP. (Low risk, leverages local knowledge).
• High Commitment/Control:
  • Joint Venture: Partner with a local firm. (Share risk, gain expertise).
  • FDI (Wholly Owned): Buy or build your own. (Full control, highest risk/reward).

Golden Rule: Don’t rush. Thoroughly research and choose an entry mode that matches your resources, risk tolerance, and strategic goals.