Entering Foreign Markets

EnteringForeign Markets




Ordinarily,entering foreign markets is a challenge for most companies,organizations, and privately owned businesses. As a result, differentcompanies have adopted different entry modes or participationstrategies so that they can successfully navigate through theseforeign markets, widen their client base, increase their sales andabove all withstand the stiff competition exposed by other firmsoffering similar products or services (Murray, Ju, &amp Gao, 2012).In light of this task, the essay will primarily focus on establishinghow DHL Express has used direct export strategy to enter into foreignmarkets. Also, the essay will how Sony and Ericson merged through ajoint venture to form Sony Ericsson Mobile Communications. Lastly,the paper will discuss how Uber Techlogies Inc. has usedlicensing/franchising strategy to enter into new markets.

2.0DHL Express

DHLis a logistics company that provides international express mailservices (Kur, 2012). Its growth and continued dominance in thelogistics industry can be largely attributed to the direct exportsstrategy deployed by the company to venture into a new market (Murrayet al. 2012). In this case, the top executive teams come up with asales program which is used by their agents and distributors indifferent destinations across the globe. The agents and distributorswork closely with their existing and potential customers. They ensurethat customer service satisfaction is achieved by provinghigh-quality services. Apart from that, the agents provide accurateresponses to their clients taking into consideration theirrecommendations and suggestions. That is essential to improving thequality of services offered. It also enhances consumer loyalty whoshare their experiences with other prospective clients. As a result,DHL Express brand has consistently improved hence enabling thecompany to enter and operate new markets successfully (Cayla &ampPe…aloza, 2012). To illustrate, the company used direct exportstrategy to enter sub-Saharan Africa 37 years ago (Kur, 2012). Sincethen, DHL has progressively grown reaching out to new markets so thatit can offer its shipping, tracking solutions and courier deliveryservices to the customers.

3.0Sony and Ericsson joint venture

Ajoint venture is also another important strategy that is used bycompanies to expand their operations into new markets. In the year2001, Sony and Ericsson completed a joint venture agreement in Londonto form Sony Ericsson Communications (Desai &amp Desai, 2013).Evidently, the joint venture has been one of the most successfulmergers in the industry since it has brought more opportunities tothe two companies by focusing more on their strengths in theincreasingly competitive mobile handset market. The joint venture hasenabled Sony and Ericson popularizes their brand across the globe,refocus their efforts on the area of expertise by providingtelecommunication and data communication systems hence competingfavorably with other mobile companies such as Nokia (IHS Markit,2011).

4.0Uber Technologies Inc.

UberTechnologies is an American multinational transportation companywhich has also made use of franchising/ licensing to gain entry intonew and untapped foreign markets (Gevero, Alves, &amp Durante,2015). The cab company has a smartphone application that enablescustomers who need a ride to connect with the drivers. Also, Uber hasset various conditions that aspiring drivers have to meet in terms ofexperience for them to qualify to be Uber drivers. Equally important,anyone who has a car can be licensed to become Uber drivers as longas their vehicles meet the required conditions. Those without carscan lease them at a fee. Through licensing of drivers, Uber has growntremendously in various cities across the globe, for instance, inWashington Dc where the tax company has gained an overwhelmingsupport from its consumers ever since it was formed in 2009.


Asit has been established, there are various market entry used bycompanies to venture and explore new markets. The essay discussed DHLExpress which is a multinational courier company that has used directexportation through its distributors and agents to enter new markets.Equally, Sony and Ericsson joint venture to form Sony EricssonCommunications was also covered and how the strategy has helped thecompanies enter foreign markets. Lastly, the paper tackled UberTechnologies Inc, and how I utilized franchising licensing to permitpeople who own cars to offer its services hence gaining entry intoforeign markets.


Cayla,J., &amp Pe…aloza, L. (2012). Mapping the Play of OrganizationalIdentity in Foreign Market Adaptation. JournalOf Marketing,76(6),38-54.

Desai,J., &amp Desai, U. (2013). Measuring Consumer Attitude towards Nokiaand Sony Ericsson Brand of Mobile Handsets. JournalOf Marketing &amp Communication,8(3),52-56.

Gevero,a., Alves, e., &amp Durante, b. (2015). HOW UBER AND OTHERRIDE-SHARING COMPANIES ARE ROILING THE TAXI MEDALLION INDUSTRY. RMAJournal,98(4),36-41.

IHSMarkit. (2011)DissolvingJoint Venture to Bring Opportunities to Sony and Ericsson. RetrievedNovember 2, 2016, from:https://technology.ihs.com/395386/dissolving-joint-venture-to-bring-opportunities-to-sony-and-ericsson

Kur,A. (2012). DHL Express v. Chronopost. CommonMarket Law Review,49(2),753-766.

Murray,J. Y., Ju, M., &amp Gao, G. Y. (2012). Foreign Market Entry TimingRevisited: Trade-Off Between Market Share Performance and FirmSurvival. JournalOf International Marketing,20(3),50-64. doi:10.1509/jim.12.0083