INTERNATIONAL MARKETING MANAGEMENT SESSION 5 TIMING AND SEQUENCING OF MARKET ENTRY 1

Firm’s Strategic Orientation Competitive posture Resources Country 1 Market Characteristics Country Risk/Opportunities Product Market Potential Degree of market integration/location Country 2 Choice of Markets Incremental vs. Simultaneous Concentration vs. Diversification Proactive vs. Follower Country 3 Country 4 Country 5 Competitor Market Choice Decision Industry Structure Country N Competitor Strategy 2

CHOICES IN MARKET ENTRY DECISIONS Speed: Incremental vs. Simultaneous Entry Geographic Targeting: Concentration vs. Diversification Competitive Position: Pro-active vs. Follower 3

A CONCENTRATED ENTRY STRATEGY Belgium Italy France Netherlands Germany United Kingdom 4

A DIVERSIFIED ENTRY STRATEGY Japan Australia South Africa Spain Mexico Brazil 5

PRO-ACTIVE ENTRY STRATEGIES PRE-EMPTION: Enter markets before competition to capture first entrant advantage. CONFRONTATION: Enter a key competitor’s market(s) to challenge and contain its position. BUILD-UP: Enter neutral markets to accumulate experience and build market share. 6

Preemption is high-risk, but may pay off. SUMMARY Importance of adopting a dynamic, strategic approach to international market entry. Preemption is high-risk, but may pay off. “Followers” need to be fast and learn from “first entrants.” 7