Entering a Foreign Market
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Entering a Foreign Market
Every organization in the global market wants to enlarge their business in the world to attain maximum profit using a limited quantity of resources. When a business makes the decision to expand into a foreign market, the economical, cultural and political stability of the country of the country needs to be considered (Bakari, 2008).
The economic capacity of the foreign market needs to be analyzed to ensure citizens are able to provide the needed market for the company’s products and services. Diversity of language, religions, foods and way of doing things exists between different countries and communities. It’s thus paramount for a business to analyze the markets cultural diversity before entry. Political stability of a country is very important for the continuity of business hence a crucial factor to consider before a business ventures into a foreign market. Stability ensures that the business continues its activities when there is change in the political class, the business employees are safe and their investments are guaranteed.
In the near future, airlines will have to go beyond the low-cost flights to ensure they attract customers through services tailored at ensuring customers satisfaction like entertainment, quality food and proper luggage handling services. They will also need a very customer friendly cabin crews and strategies of ensuring maximum customers safety and guaranteed security.
When a foreign company enters a local market, the customers in the domestic market get an opportunity of experiencing a variety of quality goods/services. This also means they get to have goods/services sent to them at very competitive prices. These foreign companies incite competition in the domestic markets through encouraging innovation, quality production and competitive pricing of goods/services (Hitt et al., 1997).
Reference
Bakari,...