Strategies for analyzing and entering foreign markets Essay

Strategies for analyzing and entering foreign markets - Essay Example onal franchising is the strategy that gives the opportunity to an independent entrepreneur to operate a business under the name of another established brand name. International franchising helps businesses to expand into foreign markets using a franchise agreement. When franchises are expanded internationally, it opens new opportunities to new markets that the business could not have reached. International Franchising also allows businesses to take advantage of favorable government regulations in various countries. This helps to save money through the paid taxes. There are cultural differences that exist in various countries that might go a long way in killing the business in these countries. There is also financial risks involved when trying to expand the business into other countries. In analyzing foreign markets, firms first critically need to choose well the foreign market in which it would want to venture in. This would involve the analysis of the potential success of the business products in that market (Adam, 2001). The firm then requires gathering enough information to use in the analysis process. The information may include the knowledge about domestic government agencies, private agencies in that country as well as other private sources. In the analysis, it is also important for the firm to assess the possible risks in the foreign market. Firms choose their modes of entry into a foreign market through identification of the market, collection of information about the market, risk assessment, securing capital and space to carry out the