ABSTRACT
Entering new markets is both challenging and rewarding. A manager must weigh a number of variables to get the decision right. This is true when a firm is thinking about getting into international markets. Segmentation is an important prerequisite for determining the best new market to enter. Many factors in the environment affect the market entry decision. The economic environment has a major impact on the market entry decision. Market development occurs when a firm uses its current products to approach a new market segment. Geroski points out that technological competence combined with good planning is essential to successful market entry. Of all new market entry decisions, a foreign market entry decision is the most difficult. There are three basic ways to enter foreign markets: exporting, investment, or contract. Using investment, a firm may choose to pursue a sole venture in which it owns all aspects of the foreign business entity, establish a joint venture, or enter into a consortium.
