Market Entry

Posted in Marketing and Strategy Terms, Total Reads: 959

Definition: Market Entry

Market entry is the bringing in of products or associated products into the target market. While considering market entry, any business will consider the following:

-          Size of the opportunity

-          Barriers to entry

-          Industry structure

-          Competition

-          Projected and historical  growth

-          Environment analysis

-          Initial investment

Sometimes a market entry strategy has to be defined, if there is import/export and a lot of regulations get involved as well.

Sometimes, companies consider entering crowded markets, where many factors need to be analysed to differentiate their products, and many times niche markets are created by companies for market entry.

Some of the market entry strategies used are as follows:

  • Franchising
  • Licensing
  • Alliances
  • Mergers and Acquisitions
  • Exporting
  • Joint ventures

Market entry strategy also depends on time of market entry. The two models/ strategies generally followed are:

-  Waterfall Model: This model refers to entering different markets at different times, in some sequential order.

-  Sprinkler Model: The sprinkler model aims at entering as many markets as possible, within a limited period of time.


Recently Starbucks, the international coffee house giant made an entry into India. For ensuring better and smoother market entry, they formed an alliance with the TATA Group, which helped them in setting up the business more seamlessly in India.


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