0708

Problem

Describe the role of networking in foreign market entry.

Step-by-step solution

Show all steps

Step 1/2

Each and every organization operating in the business environment focuses on expanding their business either nationally or internationally. When considering international expansion, is more complex and challenging than national expansion. Depending on the nature of the target market, the organizations will have to formulate effective strategies.

Step 2/2

The role of networking in foreign market entry has been discussed as follows.

The network in a business environment possesses three important components: actors, activities, and resources. The actors in the network perform desired activities or control the resources available. The firms within the networks perform various interactions and exchanges of resources. The impact of these interactions and exchanges is huge and influences all actors within the network. This makes the network very dynamic.

Hence, during the market entry process, the network or the dynamic group enables the organizations to develop an effective market entry strategy. Through proper interaction and sharing of resources, the risks involved in entering the market will be reduced. Networking provides necessary backup and support for organizations entering the foreign market.