Effective Methods for Entering International Markets

Are you looking to take your products or services beyond borders to conquer new customers and expand your global influence? Entering international markets is not simply about shipping goods abroad and selling them. To succeed, you must “know yourself and know your market” — that’s the key to winning every battle.

This article will help you clearly understand what you need to do to achieve successful market entry.

What Is International Market Entry?

International market entry refers to the process of introducing a company’s products or services into a new country where the business has not previously operated. It goes beyond simply selling goods; market entry represents an opportunity for the company to expand its influence, increase market share, and gain new customers.

This strategy requires thorough research into local culture, legal regulations, consumer preferences, and competitors to ensure that the products are well-aligned with local tastes and meet market demands.

International Market Entry Methods

Here are some international market penetration strategies you may consider:

· Exporting – The Simplest Initial Step

This is the most straightforward approach. Companies can reach customers either through direct exporting or indirectly via agents or distributors.

For example, Vietnam exports a wide range of products to the US, EU, Japan, and South Korea, including electronics, textiles, and agricultural goods. However, businesses should be aware of slow growth in some markets due to economic fluctuations.

· Joint Ventures and Partnerships – Strength Through Collaboration

Joint ventures and partnerships offer a win-win approach. By partnering with a local company to establish a new business entity, both parties can share resources, technology, and expertise, leveraging each other’s knowledge and networks for mutual growth. At the same time, both can reduce risks and increase chances of success when entering unfamiliar markets.

· Franchising – Rapid Expansion with Lower Capital

Franchising allows a business to use the brand, business model, and operational processes of a well-established brand such as The Coffee House. This method enables fast business expansion without heavy investment, as you can leverage the proven success of the franchisor’s brand. 

· Foreign Direct Investment (FDI) – Long-term Commitment

FDI involves a company investing directly in a new market by building facilities, acquiring assets, or opening branches. This approach allows for close control over business operations and the development of direct relationships with customers.

· Mergers and Acquisitions – Market Takeover

A merger is the consolidation of two companies, while an acquisition is when one company gains full control over another. Merging with or acquiring a local company enables businesses to quickly capture market share and access customers. This approach is suitable for companies aiming for rapid growth and service diversification.

· Product Adaptation and Localized Marketing – Connecting with Local Customers

To successfully penetrate a new market, your product must align with the local culture, preferences, and needs. For example, Pizza Hut adjusted its pizza recipes to suit Vietnamese tastes.

Localized marketing means tailoring advertising messages or using local ingredients. This market penetration strategy helps businesses easily connect with customers and enhance competitiveness.

· E-commerce – Rapid Access via Digital Platforms

Platforms like Amazon, Shopee, or Lazada allow you to reach global customers without physically being present in the international market. You only need to research the popular e-commerce channels in your target market to effectively sell products and build your brand.

· Pricing and Marketing Strategies – Attracting and Retaining Customers

• Penetration Pricing: Set low prices to attract customers and quickly gain market share.
• Promotional Strategies: Use discounts and gifts to lure customers.
• Enhanced Advertising: Invest in media such as TV commercials and social networks to reach potential customers.
• Distribution Channel Expansion: Diversify distribution channels to make products more accessible, but ensure quality control.
• Product Improvement: Upgrade designs and features to meet evolving market demands.

How to Choose an International Market Entry Strategy

Step 1: Understand Your Business and Goals

To clearly understand your business and objectives, consider the following questions:

• Do you need to adapt your product to fit the new market? Typically, you may need to adjust food and beverage formulas to suit local tastes.
• Does your business have enough capital to build factories or acquire companies? If not, starting with export might be the best option.
• If you take risks, are you ready to accept potential negative outcomes caused by political instability or intense competition? If not, prioritize lower-risk methods.
• Do you aim for deep market penetration and long-term brand building, or are you primarily looking to gain experience in the new market? Smaller businesses with limited resources might choose export as a way to test the market, while large corporations may prefer joint ventures or direct investments for sustainable brand development.

Step 2: Evaluate the Target Market

A large market with a high growth rate is worth making a significant investment through joint ventures or establishing a subsidiary.

If you face high import tariffs in the new market but there are incentives for local suppliers, consider local production instead of exporting.

In cases where the market has distinct cultural differences and consumer habits, partnering with a local company can help you adapt more effectively.

Markets with high political risks, such as policy fluctuations and social instability, are better suited for flexible entry methods like exporting. Conversely, stable markets are ideal for long-term investments.

Step 3: Compare Market Entry Methods

Expanding your business internationally brings numerous advantages and opportunities.
However, without a clear understanding of which market entry strategy to pursue, things can quickly become complicated. That’s why it’s essential to understand your business thoroughly and define your goals clearly in order to choose the most suitable approach.

If you need support from experienced experts, feel free to contact KMC at:
📞 +84 814 894 789, +84 919 889 331 (Ho Chi Minh City)

📞 +84 814 894 789 (Hanoi)