A market entry strategy is the planned method of delivering goods or services to a target market

Target market

A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy...

 and distributing them there. When importing or export

Export

The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...

ing services, it refers to establishing and managing contracts in a foreign country.

Factors

Many companies successfully operate in a niche market

Niche market

A niche market is the subset of the market on which a specific product is focusing; therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact...

 without ever expanding into new markets. Some businesses achieve increased sales, brand awareness

Brand management

Brand management is the application of marketing techniques to a specific product, product line, or brand.The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H...

 and business stability by entering a new market. Developing a market entry strategy involves a thorough analysis of potential competitors and possible customers. Some of the relevant factors that are important in deciding the viability of entry into a particular market include Trade barriers, localized knowledge, price localization, Competition, and export subsidies

Subsidy

A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...

.

Timing of the market entry

"What countries to enter and when mainly depends on the financial resources of a company, the product lifecyle and the product itself."

The different strategies available are:

• Waterfall strategy
• Wave strategy
• Sprinkler strategy

Strategies

Some of the most common market entry strategies are: directly exporting products, indirect exporting using a middleman, and producing products in the target market.

But also:

• Licensing
• Greenfield Strategy
• Franchising
  Franchising
  Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
  
  
• Alliances
  Alliances
  Alliances may refer to:* The plural of alliance, an agreement between two or more parties* Airline alliances, agreements between two or more airlines to cooperate on a substantial level...
  
  

Market entry and trade risks

Some of the risk

Risk

Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...

s incurred when entering a new market and start domestic or international trade include:

• Weather risk
• Systematic risk, different from systemic risk
  Systemic risk
  In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system. It can be defined as "financial system instability, potentially catastrophic, caused or exacerbated by...
  
  , the systematic risk is the risk inherent to the entire market or an entire market segment
• Sovereign risk
• Foreign exchange risk
• Liquidity risk
  Liquidity risk
  In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss .-Types of Liquidity Risk:...
  
  

While some companies prefer to develop by their own their market entry plans, other outsource to specialised companies. The knowledge of the local or target market by those specialized companies can mitigate trade risk.