If I were the CEO of a multi-national corporation to consider a market entry mode strategy, there would mostly be the most important question that would come up into my mind is which market entry mode strategy will give my company higher profitability and larger market share. There are lot of market entry mode strategies like direct exporting, indirect exporting, licensing, franchising, wholly owned companies, joint venture, strategic alliance etc. however, before choosing the market mode strategy, I would definitely consider the market’s existing conditions that will back me to boost up my company’s bottom line.

The first question that would come up is what is the condition of the economic factors of the country that my company has to deal with?

It is very clear that for every market entry strategy mode, I need to consider the existing economic issues of the country to confirm my company’s profitability and future, like its inflation rate, interest rates, income levels, currency strength, balance of trade, tax, tariff & Excise Duty, and government controls over these issues. If there is any high inflation rate or the inflation rate is unstable like Zimbabwe, no market entry mode is going to work to ensure my profitability. If there is a high market interest rate that will hamper my future business prospect, I will not consider this country to enhance my business. The income levels of the country’s residence are a significant factor to set up a price of my product and forecasting my probable profit margins. I will consider exchange rate, trade barriers, tax, tariff & excise duty as the key economic factors and also consider the government controls over these factors to ensure better profitability.

The second question that would come up is what is the market competition?

Competition is surely a major issue as a born business phase. I must consider the