BDC separately lists distributors or agents, acquiring a local business, local partnerships, a physical presence, online marketplaces, direct e-commerce, and indirect sales through another exporter as options that a business can choose or combine. BDC · 2026-10-18. Choose an option after stating the target market, offer, goals, expected sales, and market evidence.
Our market penetration vs market development guide covers the earlier choice between deepening an existing market and taking the same offer to a new market.
What is a market entry strategy?
A market entry strategy records the business goals, target-market overview, offer, expected sales, and how the company plans to achieve them. BDC · 2026-10-18. The entry mode is one decision inside that broader strategy, not a substitute for the full document.
What are the steps in a market entry strategy?
BDC organizes a market entry strategy into five practical steps, with the mode decision following goals and market research. BDC · 2026-10-18.
- Set clear goals. BDC says to state the expansion goals, targeted sales, offer, target market, action items, timeline, budget, and available resources. BDC · 2026-10-18.
- Research the market. BDC names market size, customer trends and needs, competition, the value proposition, and regulatory, certification, trade, and other barriers and opportunities among the information to collect. BDC · 2026-10-18.
- Choose the mode of entry. BDC lists distributors or agents, acquiring a local business, local partnerships, a physical presence, online marketplaces, direct e-commerce sales, and indirect sales through another exporter among the options that may be chosen or combined. BDC · 2026-10-18.
- Consider financing and insurance needs. BDC says to calculate how initial production, shipping, hiring, and other costs affect working capital, and it presents insurance as a separate consideration. BDC · 2026-10-18.
- Develop the strategy document. BDC says to write down the details and describes the document as a framework for the export marketing plan and as useful when arranging needed financing. BDC · 2026-10-18.
What evidence belongs in the target-market file?
The market file should cover the target market, customers, competitors, value proposition, and barriers or opportunities named by BDC. BDC · 2026-10-18.
- Market: record the size of the named target market. BDC · 2026-10-18.
- Buyer: record customer trends, needs, and perceptions of offers like yours. BDC · 2026-10-18.
- Competition: record domestic and international competitors. BDC · 2026-10-18.
- Offer: state the value proposition for that market. BDC · 2026-10-18.
- Conditions: record regulatory, certification, trade, and other barriers and opportunities using the wording returned by the relevant source. BDC · 2026-10-18.
What are the four market entry strategies?
FAO describes exporting, licensing, joint ventures, and ownership as its four-part continuum. FAO · 2026-10-18. BDC separately lists distributors or agents, acquiring a local business, local partnerships, a physical presence, online marketplaces, direct e-commerce, and indirect sales through another exporter as options that can be chosen or combined. BDC · 2026-10-18.
This table is a planning comparison created for this guide. It is not a taxonomy or ranking defined by FAO or BDC. FAO · 2026-10-18. BDC · 2026-10-18.
| Strategy type | What the source says | What to document before selection | Commitment note |
|---|---|---|---|
| Direct or indirect exporting | FAO says exporting can involve an agent or distributor and identifies lack of control as a problem when decisions are in others' hands. FAO. | Use BDC's target-market, competition, value-proposition, and barriers research for the named country and segment. BDC. | FAO says exporting gives an opportunity to learn overseas markets before investing in bricks and mortar. FAO. |
| Licensing or franchising | FAO defines licensing as permitting a company in another country to use manufacturing, processing, a trademark, know-how, or another skill supplied by the licensor, and says it is similar to franchising. FAO. | Use BDC's research fields, then identify the specific product, process, or trademark in the proposed arrangement. BDC. FAO. | FAO describes licensing participation as limited to the length of the agreement and the specific product, process, or trademark, and says options can be kept open for extending participation. FAO. |
| Joint venture | FAO defines a joint venture as an enterprise in which two or more investors share ownership and control over property rights and operation. FAO. | Use BDC's market research fields and state what each proposed partner contributes to the named market decision. BDC lists partnering with a local business as an entry option. BDC. | FAO says joint-venture partners do not have full control of management and that it may be impossible to recover capital if needed. FAO. |
| Acquisition of a local business | BDC lists acquiring an existing local business as an entry option. BDC. | Use BDC's target-market research and calculate how the initial investment and other costs affect working capital for the named decision. BDC. | Record the financing needs for the named acquisition as part of the written strategy. BDC. |
| Wholly owned operation or physical presence | FAO calls 100% ownership the most extensive form of participation and says the ability to communicate and control 100% may outweigh disadvantages of joint ventures and licensing. FAO. | Use BDC's research fields and calculate the effect of initial production, shipping, hiring, and other costs on working capital for the named market. BDC. | FAO says 100% ownership involves the greatest commitment in capital and managerial effort. FAO. |
FAO says the options on its continuum vary by cost, risk, and control. FAO · 2026-10-18. BDC places target-market research before its option-selection step. BDC · 2026-10-18.
What is an example of a market entry strategy?
Exporting is one market entry strategy example. FAO defines exporting as marketing goods produced in one country into another. It says home-based manufacturing gives the firm an opportunity to learn overseas markets before investing in bricks and mortar. FAO · 2026-10-18.
BDC says a written strategy should also state the goals, target-market overview, offer, expected sales, and how the business will achieve them. BDC · 2026-10-18. An exporting strategy can therefore pair the export route with those named fields.
How do you choose a market entry strategy?
Use BDC's five-step sequence above. BDC · 2026-10-18. Compare only the entry options supported by the target-market research, because BDC places research before the choice of entry option. The market-entry strategy selection guide compares those credible options through uncertainty, control, evidence, reversibility and a stop condition.
Which market entry strategy has the highest degree of risk?
FAO does not provide a universal highest-risk ranking. It says the options on its continuum vary by cost, risk, and control, and calls 100% ownership the greatest commitment in capital and managerial effort. FAO · 2026-10-18. “Greatest commitment” should not be converted into “highest risk” for every market. FAO · 2026-10-18. The evidence for the named market and the structure selected determine the actual risk. FAO · 2026-10-18. BDC · 2026-10-18.
FAQ: market entry strategy
These short answers keep the definition, example, and source-specific option lists separate. BDC defines the strategy document. BDC · 2026-10-18. FAO describes its continuum of entry modes. FAO · 2026-10-18.
What are the four market entry strategies?
FAO presents a four-part continuum: exporting, licensing, joint ventures, and ownership. FAO · 2026-10-18. BDC separately lists its entry options. BDC · 2026-10-18.
What is a market entry strategy?
BDC describes it as the place to state the business goals, target-market overview, offer, expected sales, and how the business will achieve them. BDC · 2026-10-18.
What is an example of a market entry strategy?
Exporting is an example. FAO defines exporting as marketing goods produced in one country into another and says it offers an opportunity to learn an overseas market before investing in bricks and mortar. FAO · 2026-10-18.
How do you choose a market entry strategy?
Use BDC's five-step sequence described above. BDC · 2026-10-18.
