Export Market Entry Options
4.3
199
Export Promotion
Export Market Entry Options
4.3
Export Market Entry Options
Name of the Tool:
Export Market Entry Options
Source:
GIZ
Usage:
This tool can be used for two different purposes:
1. As an analytical framework for the formulation of the market entry strategy of a national export promotion strategy
2. As a conceptual basis for supporting SMEs in choosing an appropriate market entry option for exporting (export promotion on the operational level)
Choosing the right market entry option depends on the particular structure of the target market and on the specific objectives, capabilities and resources of the IT companies.
IT companies do not necessarily have to stick to a single entry mode but can combine several entry options.
Description:
The Tool provides an overview on five different export market entry options for
IT companies from developing and transformation countries, ranging from the so-called intermediate mode of internationalisation to establishing a representative office in a particular target market. For each option a short comparison of the particular advantages and disadvantages is being provided
Overview on the different market entry options:
IT exporters from developing and emerging countries
1
Intermediate mode of internationalisation 2
Offshoring IT consultants, agents, brokers
3
Internet
IT service providers,
IT consultants, system integrators
4
5
Direct investment: representative office, subsidiary End-clients on potential export markets (non-IT end-clients, software vendors)
200
Short description of market entry options:
Option 1: Intermediate mode of internationalisation
Channelling of a company’s services or products through an existing multinational client in the home market
Examples: in Ireland and India, for many SMEs, doing business with MNCs in the domestic market was the first step in entering international
199
Export Promotion
Export Market Entry Options
4.3
Export Market Entry Options
Name of the Tool:
Export Market Entry Options
Source:
GIZ
Usage:
This tool can be used for two different purposes:
1. As an analytical framework for the formulation of the market entry strategy of a national export promotion strategy
2. As a conceptual basis for supporting SMEs in choosing an appropriate market entry option for exporting (export promotion on the operational level)
Choosing the right market entry option depends on the particular structure of the target market and on the specific objectives, capabilities and resources of the IT companies.
IT companies do not necessarily have to stick to a single entry mode but can combine several entry options.
Description:
The Tool provides an overview on five different export market entry options for
IT companies from developing and transformation countries, ranging from the so-called intermediate mode of internationalisation to establishing a representative office in a particular target market. For each option a short comparison of the particular advantages and disadvantages is being provided
Overview on the different market entry options:
IT exporters from developing and emerging countries
1
Intermediate mode of internationalisation 2
Offshoring IT consultants, agents, brokers
3
Internet
IT service providers,
IT consultants, system integrators
4
5
Direct investment: representative office, subsidiary End-clients on potential export markets (non-IT end-clients, software vendors)
200
Short description of market entry options:
Option 1: Intermediate mode of internationalisation
Channelling of a company’s services or products through an existing multinational client in the home market
Examples: in Ireland and India, for many SMEs, doing business with MNCs in the domestic market was the first step in entering international