25 Market Entry Strategy Terms

25 Market Entry Strategy Terms

Stepping into a new market is akin to exploring a deep jungle. You’re undoubtedly going to encounter unknown terrain, uncover unexpected risks, as well as rare and fruitful opportunities. But with the right tools at your disposal, those risks are manageable and the opportunities are near boundless! In the world of business, your machete is knowledge, and your map is market entry strategy.



For the uninitiated, the realm of market entry strategies can seem as dense and complex as the ecosystems of the Amazon selling strategy. But just as every good explorer learns their flora and fauna, every budding entrepreneur needs to master the lingua franca of market entry. It’s not just about moving into another country—market entry is an artform, a science, and the very pulse of international business.


In this expedition, you’ll be armed with a comprehensive guide: 25 essential terms that embody the very essence of market entry strategy. By the end of our journey, you’ll not only navigate with more confidence but will have gained the insight to redefine and enhance your business strategy.


So, strap on your boots and let’s march into the business world’s jungle with purpose.



Market Analysis

Understanding where you’re going is the first step. Market analysis involves looking at various factors such as economic, political, and consumer behavior in your target market.

Competitive Intelligence

This is the reconnaissance of your direct and indirect competition. Think of it as your business’s way of knowing the local predators and prey.

SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats. This technique helps you delve deeper into your company’s preparedness and position for a new market environment.

Market Segmentation

Markets are not homogeneous. Segmentation involves dividing your market into sections to enhance product differentiation and marketing strategies.

Local Sourcing

This term refers to the process of obtaining goods or services from local suppliers in the target market. It can reduce costs and also improve community relationships.


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Strategic Alliances

When you team up with local companies for mutual benefit. It could be to share costs, increase credibility, or gain market access.

Direct Exporting

The sale of goods or services from your home country to customers in another country without intermediaries.

Indirect Exporting

Product distribution strategy through intermediaries, such as export agents or trading companies.

Foreign Direct Investment (FDI)

This is when a company relocates its headquarters to another country due to its operations to take advantage of a host of benefits such as cheap labor, lower taxes, and less stringent regulations.

Market Adaptation

Tweaking your product or service to fit the needs, wants, and expectations of the local consumers.

Joint Venture

A partnership where two or more companies work together sharing risks and benefits in a new project or business by pooling resources.


A contract between the owner of a product or process and another party who wants to use that product or process in a specified territory.


This involves using another firm’s successful business model. It can provide quicker market entry, but comes with more stringent control and higher costs.


This is the process of acquiring controlling interest in another company. It can provide instant market access and established infrastructure.

Wholly Owned Subsidiary

A company whose common stock is 100% owned by the parent company.

Greenfield Investment

A form of FDI where a company builds its operations from the ground up in a foreign country.

Incubators and Accelerators

Entities bundling up support for new businesses by providing startup resources, services, guidance, and networking.

Market Penetration

Selling more of the same in the same market. Think about your strategies to increase market share.

Product Development

Creating a new product for the existing market. It includes research, product design, concept development, and more.

Market Development

Taking existing products into new markets. It can involve seeking new segments, new regions, or a different pricing strategy.




This is expanding your product line or entering a new industry which is different from your company’s core business.


This term refers to the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them.


Similar to outsourcing, offshoring involves getting work done in a different country, not necessarily for cost savings, but for other strategic reasons like Business Process Efficiency.

Culture Shock

Business expectations and procedures vary globally. Culture shock is the disorientation when entering a new business culture.

Entry Barrier

Entry barriers make it difficult for new firms to enter a market. They can be related to economy of scale, high initial investment, or brand loyalty.







That concludes our guided tour through the market entry strategy handbook. Every term you’ve learned is like using a new tool to carve your path through unknown business landscapes. The terms you’ve picked up are not just words but the very stones you’ll step on, the seeds you’ll plant, and the water sources that will nourish your strategies.

Conclusion: Pathway to Strategic Brilliance

Embracing unfamiliar markets shouldn’t be daunting. Instead, it should be a thrilling opportunity where you leverage not only your company’s strengths but also the wisdom accrued from understanding these market entry terms.

As you reflect on our cherished encounters with each of these terms, remember, their essence lies not in their definition, but in their potential for your business. Market entry strategy should not be a one-time expedition. Make it a continuous journey of discovery and strategic refinement.

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