Market Entry

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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.


Example:

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.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

Search & Explore : Business Concepts



Share this Page on:
Facebook ShareTweetShare on Linkedin