which global entry strategy has the highest degree of risk

A global entry strategy is an agreement between two companies to sell their products and services to a global market. This agreement often involves sharing ownership, control, and profits. In this scenario, marketing operations are standardised. The parties to the agreement are bound by a binding contract and share risks.


One of the best ways to enter a foreign market is to partner with a local company. This will help you navigate the market, get employees and customers, and increase sales. Additionally, many countries require companies to have local representation to operate legally. In addition, partnering with a local company will allow you to maintain a presence in the local market.

Another advantage of partnering with a large, established brand is that they will be able to promote your product in their own way. In some cases, you may have to compromise on brand image. A small, new company may not have the name recognition to compete with an established brand, which could affect your reputation.

Another effective global entry strategy is piggybacking, a strategy in which two companies collaborate to promote complementary products. This strategy is incredibly efficient and has become increasingly popular in recent years. Because it involves minimal investment, piggybacking can be a cost-effective solution for entry into foreign markets. However, it requires a high level of trust between the partners.

Another option is joint venture. While these partnerships can have significant risks, joint ventures can significantly reduce the risk associated with international expansion. A joint venture will function much like a large independent company, with the potential to earn higher revenue than a single company. One drawback of this strategy is that the joint venture may create an imbalance of power between the companies. However, you and your joint venture partner can establish fair processes to minimize risk.


In order to minimize the risk of entering a new market, companies should consider joint ventures. This strategy involves setting up a joint venture with another firm to sell and market products in another country. The partners in the joint venture share the profits from the sale. However, this strategy can lead to an imbalance of control between the companies involved.

Another strategy involves entering a new region as a small business. This strategy allows companies to minimize risks and gain knowledge of the market. However, this strategy is likely to generate less attention. Sometimes, the best strategy is to enter an export market in a quiet manner. However, when a large company enters a market, it must be aware of its risks.

Choosing a strategy will depend on your business needs. There are many options for international entry. Some are cheaper and easier to implement than others. For instance, licensing a product to a major company in a developing country is a relatively easy way to get a foothold in that market.

On the other hand, exporting involves sending goods to a foreign country. This strategy is less risky because it doesn’t require investment in production facilities in the foreign country. Moreover, a firm that is accustomed to selling its products domestically might also consider exporting.

Another strategy is to establish a wholly owned subsidiary in a foreign country and start selling there. The advantage of this strategy is that it establishes credibility as a local business. Although company ownership costs a lot more than other market entry strategies, a wholly owned subsidiary can provide a high return on investment.


There are several different ways to enter a global market. Some of them require less initial investment and are less risky than others. Exporting is one of the least risky methods of global entry. Another way to enter a new market is to form a joint venture. This method involves sharing the risk with another firm and gaining knowledge of the host country’s market.

In addition to exporting, companies can enter international markets through joint ventures, licensing, or piggybacking. In a joint venture, a company will ask another business to sell its product in a foreign market. In return, the company will share in the profit from each sale. While this strategy can increase costs, it is often offset by higher sales.

Licensing involves joint ventures, licensing, or contract manufacturing. These are similar to franchise operations. Coca-Cola is a prime example. These joint ventures are often low-cost and involve little investment and policing implementation. Licensing deals can also include options to buy into the partnership or provisions to receive royalties in stock.

Large-scale market entry involves significant resources. Although this method may provide the greatest potential for making a big impact in the new market, it can be risky if the company fails. For this reason, some clients avoid entering large markets such as Turkey or Germany. The decision on where to enter is ultimately dependent on your risk appetite and the stage of your company.

Licensing agreements are another option for companies looking to enter the global market. This method allows a foreign company to make use of the licensor’s brand, products, manufacturing process, and patents. This strategy allows companies to enter markets quickly and efficiently while reducing the legal and financial risks of going it alone.

Chelsea Glover