0701

Problem

What are the key environmental factors to be considered when entering a new market?

Step-by-step solution

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Step 1/5

Market entry tactics:

Getting into new markets involves a lot of research and patience that eventually decides the fate of the new business venture. The firm should be firm and resilient about all the decisions that would affect the flow of the business, especially, when entering in the international markets. The best tactic to distinguish between markets and choosing the best market would be segmentation. The next step is market entry that should be initiated once the segmentation is completed and the specific market is chosen.

Step 2/5

Environmental factors:

The key factors include economic, political, demographic, social, legal, and cultural factors are the most important aspects to consider while entering a new market. The market entry strategy decides the fate of the business and the time it will take to flourish in the market. The most fundamental part of any market strategy is to analyze the environmental factors accurately and appropriately.

Step 3/5

The stability and equilibrium of the governing body and the political climate must be kept in mind before entering a new market. The unfavorable consequences can be met if the public opinion or awareness shifts the focus. The thorough economic research of the market must be done such as interest rates, inflation status, and exchange rates to prevent the entry in wrong market.

Step 4/5

The demographic research should be conducted such as the dominant language, cultural pattern, or their local currency. The way that people live and their cultural background is very important for the acceptance or denial of any new strategy of the market. The socio-legal factors include the assurance of government aid before investing the resources for their development. The previous records of different associations and their respective success should be kept in mind before entering a new market.

Step 5/5

Marketing environment:

The factors that govern the reach and success of the brand refers to the overall environment. The ability of the firm to inter-communicate, deliver, produce, and market the products is based on the internal and external factors influencing the market. The environment incorporates the internal environment, micro and macro environment respectively. The organizational control is specific to the internal environment while the forces and factors under which the operation happens refer to the micro-environment. The factors influencing all the industries and large-scale production is the macro-environment.