14 February 2013
9. How will entry into a developed foreign market differ from entry into a relatively untapped market?
Marketers face many issues in the decision making process in order pursue the many different possibilities concerning foreign and domestic markets in terms of expansion and structural change. These companies seek ways to improve capital by expanding into different markets, investing, and enhancing the quality of life with their products in foreign markets and the pursuit of such a move could either be adverse or positive to the company in nature. Initially, there are steps taken and research conducted by the company to ensure the route they area attempting to take will prove to have a positive return, just as long as their plans are in tune with, or along the same lines as, the market they are attempting to interact. As stated in the text “Comprehensive decisions must be made regarding key strategic choices, such as standardization versus adaption, concentration versus dispersion, and integration versus independence” (Cateora, gilly,graham 306), this means both sides must have cohesion prior to the decision making process to ensure the products, or services, offered have a positive reaction to the culture they are attempting to attract.
Among other issues faced by the companies the opportunities presented by outside or foreign, markets are not always in sync with those of the companies, for example, as the text states “it may be necessary to change the objectives, alter the scale of international plans or abandon them. One market may offer immediate profit but have a poor long-run outlook, while another may offer the reverse” (Cateora, Gilly, Graham 313), this shows the primary difference between developed markets and undeveloped markets because where the resources are lacking within an untapped market they strive and do not provide speed bumps...