Advantages and Disadvantages of a Market Entry Strategy for SMEs Essay

Advantages and Disadvantages of a Market Entry Strategy for SMEs - Essay ExampleThe risks associated with accounting entry into a new and unfamiliar market can be reduced by applying pertinent market entry strategies. Under this strategy, exporting can be divided into two parts such as in organise exporting as well as direct exporting. Indirect exporting is referred as fall the producers risk by selling the manufacturers product in the foreign market with the help of others. On the other hand, direct exporting signifies that a company controls the export activities as well as sells the manufactured products directly to the foreign market. Therefore, in the direct exporting strategy producers view more control on the activities of a foreign market (Tielmann, 2010). In this paper, the benefits and the disadvantages of a foreign market entry approach about exporting of minute and medium enterprises (SMEs) as well as multinational enterprise (MNEs) are discussed. Evaluating the advan tages as well as the disadvantages of market entry strategy is most classical in order to develop SMEs exporting. Entry strategy of exporting for SMEs can be defined as sale of goods produced by the SMEs in the foreign market with the help of agents and distributors (Bendt & Skropska, 2011). The selection of optimal entry mode strategy is imperative for SMEs in the international marketing context in order to make their presence felt in the competitive foreign markets where there are a number of existing competitors present. SMEs have been observed to deliver quite simple objectives as well as organisational structures. SMEs key aim is to make growth as well as development, which can be ensured by maximising the anticipated profit level. However, SMEs face resource and information constraints (Decker & Zhao, 2004).