15 Entry Mode Strategy Examples

The right entry mode strategy can mean the difference between international success and failure. But with so many options to choose from, how do businesses decide which path to take? Let’s explore the various entry mode strategies and their potential impact on a company’s bottom line.

🔝 Top 5 Entry Mode Strategies

  1. Nike Inc.'s Marketing in the United Arab Emirates
  2. Economics for Business
  3. EBay Company's Entry into the Japanese Market
  4. Wal-Mart After Entry into the Chinese Market
  5. Zara Company’s International Strategy and Success

📲 What Does Entry Mode Strategy Mean?

The definition of entry mode strategy is a structured agreement that lets an organization promote its product with marketing strategies in various countries. Many firms interested in international business use it to enter new markets. The most popular modes of entry are foreign investments, contractual agreements, exporting, and joint ventures.

Why Is Entry Mode Strategy Important?

Entry mode strategy is essential because it helps businesses to thrive. It also allows them to expand to new areas and countries. Companies using entry mode strategies soon start to notice how it increases productivity levels and sales and ultimately improves the business’ growth.

What Are the Four Market Entry Strategies?

While there are plenty of new market entry strategies, four of them are particularly convenient, easy to understand, and effective:

  • Licensing
  • Exporting
  • Franchising
  • Wholly-owned ventures.

Companies partnering with other firms for the first time can easily take advantage of these entry-mode strategies.

What Is the Best Entry Mode Strategy?

There is no way to say which entry mode strategy is best. Its value varies from person to person depending on their business’s particular needs. However, there is one mode that is favored almost universally: exporting. It’s relatively easy, allowing many people to use it without additional resources.

🗺️ Entry Mode Strategy in International Business: Main Types

Primarily, there are 5 modes of market entry strategies in international business.

ExportingExporting is one of the most straightforward modes of market entry. It involves transporting goods and commodities from one company to another.
LicensingWhen a licensor gives permission to distribute and promote their services or products under a trademark, it is called licensing. Most of the time, the license is only valid for a particular period and applies to specific areas.
FranchisingFranchising happens when the franchisor licenses all of their company’s business models, brand name, and intellectual property to someone and permits them to sell the brand’s products or services.
Wholly owned venturesA wholly owned subsidiary is the riskiest entry mode strategy. It’s because the company establishes its presence from scratch, which is usually a complex and expensive process.
AcquisitionsAn acquisition is simply a transaction. Acquisitions are attractive because they allow start-ups to organize their funds better.

🔥 4 Examples of Successful Entry Mode Strategy

Now, let’s look at the best examples of famous brands and their entry mode strategies.

Entry Mode Strategy of Starbucks in China

China’s famous tea has been part of their culture for the longest time. Starbucks saw an opportunity in the Chinese market: and seized it. Now Starbucks is one of the largest brands in China, with over 6000 stores.

France’s McDonald’s Entry Mode Strategy

Mcdonald’s does very well in America; overall, it’s a world-famous company. However, when it reached France for the first time, it had little success. It wasn’t until Mcdonald’s changed some of its marketing tactics that it earned its spot in France.

China’s IKEA Entry Mode Strategy

IKEA did exceedingly well in China because they knew that most people there had little information about assembling a piece of furniture. IKEA recognized this and offered solutions and easy guides to help their Chinese clients through the process.

America’s Red Bull Entry Mode Strategy

Red Bull was introduced so effortlessly in America that most people don’t even know it originally came from Australia. The energy drink has stolen the hearts of many. Almost all of America knows about Redbull, their sports competitions, the major league soccer team, or the “soap-box derbies.”

Other examples of companies with excellent entry mode strategies include:

Check out some of our other ideas to gain a better perspective!

📝 Entry Mode Strategy Research Paper Examples

  1. International Marketing: The Analysis of the Market
    This paper discusses the important aspects that are necessary before getting into the new business venture. This analysis is vital for the purpose of expansion.
  2. Mode of Global Market Entry. '. Goldendrops'
    The global market has become so complicated and advanced that only the strong and competitive firms are able to survive
  3. Getinsa Saudi Arabia – A Case Study
    This paper presents a case study on the organizational structure and operations of the Spanish company Getinsa within Saudi Arabian railways.
  4. Emaar Saudi Investment: Company Analysis
    Emaar - is a Middle Eeast company which is into real estate development. The main purpose of the company is to provide new infrastructure across the countries.
  5. Dominos Pizza Enterprises: Marketing
    This paper discusses a marketing plan for Dominos Pizza Enterprises: new product strategy, key target market, pricing strategy, placement and distribution, product promotion.
  6. Ernest & Young: Invest in Saudi Arabia
    The paper discusses the determinants and motives for Ernest & Young to challenge and invest in Saudi Arabia market.
  7. Etihad Airways: Company Analysis
    Etihad Airways Company is the UAE’s national airline. This company was set up in the year 2003 in the month of July by a Royal decree.
  8. International Business Strategy: Case Study on Clippy Bag
    Based on Clippy London’s products, I would strongly recommend business franchising as the entry mode to different international markets.
  9. Shangri-La Hotel Group Case Study
    The Shangri-La Hotel Group has managed to succeed because of its superior products and services, and a respectable international record of accomplishment.
  10. Whittard of Chelsea Firm's Market Entry Strategy for the US
    The report comprises PESTEL-based macro-environmental analysis, market entry modes with the selection of the most appropriate one, STP strategy, and generic entry strategies.

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