Market Entry Strategy of New Suppliers to Organization

Introduction

A successful business had a successful market entry. Most of the organizations are placing an effort to establish a market research and analysis that can provide them sufficient details about their target market. This initial step of the business leaders are approved by the business analysts. Building market entry strategy is inevitable to reduce the risk and other consequences.

Market Entry

In the event where the business needs to enter a new market or aiming to find a market that will make their business profitable, the business usually turns to the option in making a strategy. Entering a market is defined hard only when there is no strategy. Therefore, the word market entry is established. The new suppliers should make strategies by offering the kind of product in two ways. Suppliers should either differentiate the type of supply that an organization can purchase or to value the type of substitutes. Still, suppliers, to gain the market share, should possess some sustainable competitive advantages, other resources, and the time to develop their offers. In the idea of competitive advantage, the suppliers should give the offers that their competitors are difficult to imitate. Most of the time, the chance to have a successful market entry lies in the ability of the suppliers to accommodate the firms and establish a good relationship. In this practice, the strategy is created and the suppliers are the first one to gain the benefit. Through the idea of accommodating the participating organizations, the margins as much as the market share is in their favor and the trust of the organization will be part of their asset (Lim, Lee, and Tan, 2004).

As part of the strategies to make a successful market entry, the suppliers or the business should identify the different changes and opportunities available in the market. Accordingly, through the changes, the strategy can be affected and duly transformed based on the recent market flow. This is definitely different to those of the organizations that well established the fixed strategies. Due to the difference of the supplier in terms of the resources, background, people and its competencies, the market strategies implemented will reflect of what kind of business they are. Sometimes, the influence of one supplier to the other market domain is a great advantage to have another successful market entry. Good market entry strategies are indeed crucial and have difficulty in securing the funds, but also can be affected from the economic uncertainties which considered as part of the future success.

Characteristics

Market entry strategies are not successful if the business leaders did not possess quality characteristics. A business should acquire the expertise in managing and operating; have a standard process, definite market size and acquisition of the appropriate technology. Also, the new market entrant should be aware of the impact of the other competitors. A strategy should possess the set of goals and policies which is also aligned in the strengths and weakness of the industry. They should know how to use the opportunities and learn to counter the flow of the threats. A strategy can be successful if it is matched in the environment of the business and the suppliers can recognize it from achieving the superior performance. When the suppliers created the market entry strategy therefore, the business leaders can have a better decision making which is very vital in the survival of the business. Market entry strategy also attempts to make an influence in the market that can play an important tactic to lessen the impact of the tight competition and to set the trends (Teo, 2002).

Benefits

The new market entry of an organization provided the new experiences that will lead to the skills which in return can be used by the organization to have an additional knowledge regarding the market, adapt the other technological advancement, and provide well-functioned strategies. Sometimes, the new market entry gives opportunity for the business to accommodate the idea of expansion to other market domains. But the business should acquire their expansion with the applicable skills and appropriate use of knowledge. The organizations that can manage the routine of the activities and enhance their existing strategies have the more capabilities and competencies over the long period of time (Burpitt, 2004).

Conclusion

The market entry is the crucial start of every business but this is also the best start if the organization as well as the suppliers will try to learn the appropriate strategies. A successful market is possible through the differentiation or substituting the existing market offer.

References:

Burpitt, W., 2004. Knowledge Based Resources and Organizational Capabilities: a Study of New Entry. Journal of Applied Management and Entrepreneurship, Vol. 9, No. 2

Lim, G., Lee, K., & Tan, S., 2004. SME’s Market Entry Strategy: Substitution Instead of Niching. [Online] Available at: http://www.sbaer.uca.edu/research/icsb/1999/07.pdf. [Accessed 12 Feb 2010]

Teo, E., 2002. Market Entry Strategies of Wireless Startups. [Online] Available at: http://groups.haas.berkeley.edu/fcsuit/Pdf-papers/Teo.pdf. [Accessed 12 Feb 2010]