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other characteristics. It is also worth noting that for many small and
medium-size enterprises, the choice of an effective local distributor is often

critical in achieving success in foreign markets. Decisions on entry modes
depend on the following factors: company goals regarding the volume of
international business desired; the size of the company’s sales and assets;

the company’s product line, and the nature of its products and competition
abroad. The international company must take the decisions about these

criteria in relation to its overall goal.

Figure 6.1: Different market entry strategies
High Wholly owned subsidiary
Acquisition
Assembly operations
Joint venture

Strategic alliance
Licensing
Contract manufacture
Levels of commitment, Direct marketing
control and risk
Franchising
Distributors and agents
Sales force
Trading companies
Export management
companies
Piggybacking
Low Domestic purchasing

Doole and Lowe (2008, p.222)

6.5 International market entry

Overseas market entry modes are characterised by different degrees of
risk, control, commitment, resources, and the return on investment that

they promise. Therefore, the initial entry stage is crucial, because a false
move may result in withdrawal or retreat from international markets.

Mistakes made in initial entry can damage a company’s reputation, and