Market Entry Strategy
A properly planned method delivering and distributing goods and services to a new market is known as a market entry strategy. There are several ways through which a company can enter into a new market. A particular mode of entry into a new market is not feasible for all the companies, and different markets have different approaches towards new businesses. In order to develop a good strategy to enter a market, several factors that influence the decision must be observed before opting for any strategy. The best strategy that is available to enter the new market is direct exporting. Direct exporting allows a company to start selling its products and services in the new market. The strategy of direct exporting is adopted by many companies once they have established a proper market share and sales program in the local market. The company must select agents and distributors for the medical devices. The agents and distributors play a key role in helping a company to enter a new market, and therefore, shall be hired in a similar manner as a key employee. The approach is also adopted because it is the least expensive approach to entering the new market and the company does not have to face a large number of legal issues to enter through this fashion in the new market .
SWOT Analysis
SWOT Analysis represents strengths, weaknesses, opportunities, and threats that are evaluated for a project or a new venture. The evaluation of internal environment is done by identifying strengths and weaknesses, whereas, the external environment is evaluated by determining the opportunities and threats .
Strengths
The major strengths are the new and innovative medical equipment that are not available in the market. The innovative medical equipment will attract customers towards it. The focus on improving the healthcare conditions is also strength as it gives a positive impact on the minds of customers. The company has a vast market share in America which means that the company has expertise and experience in the field which will help the company to be more competitive in the market and hence, this factor can be termed as a strength of the company.
Weaknesses
While evaluating the internal environment, some weaknesses are also identified. One of the biggest weaknesses is limited or no information related to the new market. There are several cultural differences that are a barrier for the company to operate properly in the market. As there is an existence of cultural differences, gaps in capabilities and services also exist. The company must try to overcome these gaps in services, or it can turn out be such a weakness that can affect the performance and profitability.
Opportunities
The biggest opportunity in the new market is vulnerable competitors. The vulnerability in competition will allow the company to enter the new market easily and grasp a big share in the market. Focusing on a niche market is also an opportunity that prevails in the new market for the company.
Threats
References
Doole, I., & Lowe, R. (2008). International Marketing Strategy: Analysis, Development and Implementation. Mason: Cengage Learning EMEA.
Fine, L. G. (2009). The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats. London: CreateSpace Independent Publishing Platform.
