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 entranceway into a new and unfamiliar securities industry can be reduced by applying pertinent market accounting entry strategies. Under this strategy, exporting can be divided into two parts such as mediate exporting as well up as direct exporting. Indirect exporting is referred as decreasing the manufacturers 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 have to a greater extent 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 small and medium endeavors (SMEs) as well as multinational enterprise (MNEs) are discussed. Evaluating the advantages as well as the disadvantages of market entry strategy is most important in regularise to develop SMEs exporting. Entry strategy of exporting for SMEs can be delineate 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 optimum 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 deed of existing competitors present. SMEs have been observed to possess quite simple objectives as well as organisational structures. SMEs recognise aim is to make growth as well as development, which can be ensured by maximizing the anticipated profit level. However, SMEs face resource and information constraints (Decker & Zhao, 2004).