Assessing Foreign Markets Term Paper Example | Topics and Well Written Essays - 2500 words

Assessing Foreign Markets - Term Paper Example However, entry into a new market requires comprehensive study and exploration of different factors in order to make more informed decision before entering the market. As such the development of a framework for entering into new foreign market can provide critical insight to a firm to make better decision to enter the market. A comprehensive framework therefore may include the exploration of factors such as decision of identifying foreign market, overall timing of entry into that market, deciding on the scale and commitment and entry mode are some of the factors which should be covered to make a better decision. This paper will develop and construct a comprehensive framework for making entry in the Mobile Phones Market in India. Based on the different factors identified in the framework, paper will than present an analysis of these factors in order to make more informed decision to enter into this market Strategic Reasons As a prelude to the use of any strategic framework to enter int o a market, it is always important for the global firms to identify the strategic reasons for which entry into a foreign market is made. Firms adapting a transnational strategy often remain in search for simultaneously achieving low cost advantage through the location and experience economies while at the same time enjoying economies of scale and taking advantage of learning curve. Firms adapting such strategy therefore often enter into different geographical markets in order to take advantage of cost reduction and achieve diversification. (Hill) India being one of the growing economies of the world therefore can provide firm some clearly identified competitive advantage. Considering the transnational strategy of the firm, entering into India market will not only allow to achieve economies of scale but also enjoy the benefit of location and experience economies. Since developed markets are leading towards maturity stage in mobile phone industry therefore it is critical for global fi rms to continue to look for growing markets such as India in order to take advantage of the economic growth made by such countries. It is also significant to note that firms working at the global level could only compete if they enjoy low cost manufacturing or services set up. Consistent focus on reducing the costs could only allow the firm to remain profitable in global market therefore markets like India can offer this opportunity. This is based upon the fact that India has well established technological base as well as qualified human resource. These resources therefore can encourage any international firm to look for entering the market and enjoy low cost operations while at the same time penetrate into a new and growing market with potential to earn higher returns. Comprehensive Framework Following elements will be included in the comprehensive framework in order to analyze the decision of making an entry into Mobile Phones market in India: Identification of foreign market This parameter will be used