IJSRST173311 | Received : 05 March 2017 | Accepted : 13 March 2017 | March-April - 2017 [(3)2: 59-67 ]
© 2017 IJSRST | Volume 3 | Issue 3 | Print ISSN: 2395-6011 | Online ISSN: 2395-602X
Themed Section: Science and Technology
59
New Paradigms in International Market Entry : A Reflection on the Present
and the Future
Wiliam Kouame Yoboue
1
, Kaigan Yi
1
, Henry Asante Antwi
2,3
1
School of Business Administration, Zhejiang University, 18 Xuezheng Street, Hangzhou, P.R. China
2
School of Management, Jiangsu University, 301 Xuefu Road, 212012, Zhenjiang, Jiangsu, P.R. China
3
Institute of Medical Insurance and Healthcare Management, Jiangsu University, Zhenjiang, Jiangsu, P.R. China
ABSTRACT
To survive and prosper, business organizations must aim at the international market in order to gain mileage for
their brands. The existing literature provides several international market entry strategies adopted by business
organizations over the last decade with conflicting outcome of their strengths and weaknesses. With the technology
revolution has emerged an online marketing platform that has revolutionized international marketing dynamics. This
study revisits international market entry strategies by looking at the existing ones. It evaluates the complementarity
of e-commerce and traditional market entry strategies while pointing out their respective common identities and
points of difference.
Keywords: E-Commerce, Online Marketing, Political Undertones, Flagship, Coca-Cola, Pepsi
I. INTRODUCTION
The entry methods employed by international retailers
have developed as a core theme in international retail
marketing research. Largely, the reason assigned for this
development is related to the growing exploit of
contemporary entrepreneurs who are seeking the most
effective and least cost method of entry into the retail
market of other countries (Swinyard & Smith, 2013).
The current literature documents several market entry
modes yet, there is also a growing concern that some of
these strategies are only suitable for peculiar political,
economic, socio-cultural and technological environment
while others are believed to be outmoded. The online
marketing platform is one of the emerging modes of
market entry preferred by a significant number of
international retailers due to its perceived lower cost
(albeit the risk involved) for both companies and
consumers (Dawson, 2014). Our study reviews the
current stock of literature on market entry strategies,
highlighting their core strengths and weaknesses. The
business case and intricacies of the online market
platform as an emerging market entry strategy is then
introduced and interrogated from the perspective of
consumer shopping behaviour. We conclude by
clarifying our position on online shopping as a market
entry strategy.
II. METHODS AND MATERIAL
A. Non-Controlling Interest
The first international market entry strategy that comes
to mind is where a foreign company decides to obtain a
non-controlling interest in an existing firm in the
destination country. The home company acquires a
minority interest in the firm. Since the majority interest
holders hold a controlling power over the operations of
the company, the foreign firm with its limited share is
said to hold a non-controlling stake (Wrigley, 2016).
The total share of a company is valued at 100%. The
international company thus seeks to buy less than 50%
of the shares but to give it an influence in the activities
of the organisation. Usually, the share of the foreign
firm is valued at market price which forms the basis to
determine an agreed consideration the company pays for
its share. For a firm the decision to choose a non-
controlling interest is arrived at after considering many
factors. Based on studies on several organisations that