In developed or developing markets, more competition will exist, decreasing demand for the company's specific product and also increasing the marketing struggle, as brand loyalties and simple recognition will be higher for companies already established in the market (Foley 2010). Beginning entry into such a market with simple exporting is advisable, as it has reduced costs and lower risks than other entry methods (provided that manufacturing in the country of entry is more costly than manufacture at existing plants) (Foley 2010). Where less competition exists, other methods of entry can be developed that confer the advantages of early entry more quickly, generally with greater upfront costs but more profit potential in the long-term, assuming the business and its marketing efforts are run properly and efficiently (Foley 2010). These markets, especially in the relatively saturated world that exists today, might have strong cultural resistances to direct investment attempts, making joint ventures a favorable method of initial entry into a market, establishing brand recognition and building cultural bridges between the company and the market before transitioning to a different type of venture, typically a direct investment subsidiary (Foley 2010).
4)
Jet Import is a Belgium-based importing company, purchasing a variety of products such as Heineken, Corona, and Red Bull from producers in various countries...
This is a form of indirect export, where many different producers located in geographically disparate areas of the world all export their goods to Belgium through the services of an intermediary importer, Jet Import (Linkedin 2010). Direct exportation would require each of the beverage manufacturers/brewers that Jet import does business with to have independent operations within Belgium, potentially increasing costs to the point that sales in this country would be negatively affected. The existence of Jet Import provides a means for cheaper transportation of goods through bulk, multi-producer dealing (though the producers are geographically disparate, they exist in clusters allowing for combined shipments), reducing costs overall and providing a cheaper and thus more frequently sold product to the Belgian market.
References
Foley, J. (2010). "Foreign market entry modes." Accessed 13 June 2010. http://www.quickmba.com/strategy/global/marketentry/
Linkedin.com. (2010). "Jet Import." Accessed 13 June 2010. http://www.linkedin.com/companies/jet-import
Sharp, G. (2010). "Joint ventures." Accessed 13 June 2010. http://www.referenceforbusiness.com/encyclopedia/Int-Jun/Joint-Ventures.html
VBM (2010). "Product life cycle." Accessed 13 June 2010. http://www.valuebasedmanagement.net/methods_product_life_cycle.html
