Step 4 involves analyzing the results. When looking at the data, the entrepreneur should carefully scrutinize and question the results. He or she should also look for errors, as mistakes can be easily made. Also, a what-if analysis should be conducted by changing some of the weights and seeing how the results vary.
The final step - step 5 – involves selecting a market to enter as well as follow-up markets so that an appropriate entry strategy can be selected and a market plan developed.
ENTERPRENEURIAL ENTRY STRATEGIES
There are various ways an entrepreneur can market products internationally. The method of entry into a market and the mode of operating overseas are dependent on the goals of the entrepreneur and the company’s strengths and weaknesses. The modes of entering or engaging in international business can be divided into three general categories: exporting, nonequity arrangements, and direct foreign investment. The advantages and disadvantages of some of the modes are indicated in Table 5.4.
EXPORTING
Frequently, an entrepreneur starts doing international business through exporting. Exporting normally involves the sale and shipping of products manufactured in one country to a customer located in another country. There are two general classifications of exporting: direct and indirect