MARKET ENTRY MODESKey IssuesStrategies for market entryMode of entry optionsInfluences on mode of entry selectionINTROD!TIONMode of entry is a key strategic issueFirst stage of channel decisionChannels between nationsInitial or continuing entryImportant in determining degree of control over marketing mixDE"INITION#An international market entry mode is an institutional arrangement necessary for t$e entry of t$e company%s products& tec$nology& and $uman and financial capital into a foreign country'market()Al*aum& Duerr + Strandsko,& International marketing and E-port Management .t$ edAS/E!TSModes of entry represent varying levels of control, commitment, involvement, cost and riskSelection through experience or analysisFormulation of multiple entry strategiesIM/ORTAN!E O" DE!ISIONOne of the most critical decisions in international marketingMany failures come from selection of an inappropriate entry modeCan help minimise the level of riskCan influence final priceCan create barrier to entry for competitorsA//ROA!0ES TO MARKET ENTRYNa1,e ruleSame entry mode for all marketsIgnores heterogeneity of markets/ragmatic ruleorkable mode of entry for each marketChange when not feasible or profitableStrategy rule!ll alternatives systematically compared and evaluated before choice madeRoot 2334IN"5EN!ES ON SE5E!TIONINTERNA5Management ob"ectives relative to marketSpeed of entry, level of control, involvement#xperience and expertiseMore experience, less risk $%& perception of risk'(esourcesFinancial and human)roduct)ayback*earningE6TERNA5 IN"5EN!ES Market si+e and potential#xisting and futureMarket access&arriers to entry, legal barriers, availability of partner*evel of risk)olitical, economic and culturalCost of entry#Sout$ Africa resists marc$ of 7al8martnions and ministers unite to oppose giant S retailer%s takeo,er of Massmart c$ain()T$e 9uardian& 22'2:'22;ASI! MODES O" ENTRYE-port!ontractual7$olly 8 ouick mode of entry"le-i*le5ouick