Benefits of Market Entry Strategies
More revenue generation: In this process, the companies get the opportunities to get new sources of earning revenue from. The companies which have saturated in their efforts in the domestic market have growth opportunities for expanding in the global market. This occurs because there is a larger customer base which aids in gaining more profits for the business (Hill, 2008).
Resources and supplies: The companies operating in the global marketplace have the adequate amount of capital to be invested and for further expansion opportunities. The business with the help of global marketing gets the opportunities to be exposed to new materials and resources.
Market development: The diversified customer base aids in spreading the risks of the business to a larger customer base. This means that if the business is unable to make profits in one country, then it has still an option to expand in new country. This occurs despite of the government regulations levied in that particular country.
Larger talent pool: In the global market, the businesses are assisted with a huge pool of talent. The employment of the diversified employees in the company enhances the services provided by the company and also diverse populations are an advantage to the business. The global work teams collaborate with other employees for the realization of the objectives of the business, in an efficient manner (Cavusgil et al., 2014).
Benefits of Technology
The benefits in technology are listed as below, which help in minimizing the disadvantages of doing business in the foreign market:
Increased speed of international communication and travel
Smaller world due to increased communication
People are more aware of the events happening in outside countries and their home country
Increased awareness of foreign opportunities
Better understanding of foreign opportunities leads to better international trade and investment
Increased number of businesses operating in the foreign market
Economies around the world are more closely integrated
Therefore, when the above points are incorporated in the small to medium enterprises, then they are enabling to minimize the disadvantages of excelling in the global marketplace (Laufs and Schwens, 2014).