This is an abstract from a dissertation by Hjalti Sölvason MBA student at the University of Edinburgh on developing market entry strategies as one of the main challanges facing companies wishing to expand into new market segments.

Managers are always under pressure to maximise shareholder value, and when they face a saturated market at home, they begin to search for new markets outside their home country. In other words they seek geographic diversification.

It makes a foreign market even more attractive if it is growing faster than the home market itself, and as improved communications might be considered a supportive reason for opening up new markets overseas.

Improving productivity is one reason for going abroad in order to obtain greater profits and revenue. Greater profits on overseas investments can be a strong motive for going abroad. Service companies frequently follow customers overseas to prevent competitors from gaining access to their clients.

By using foreign production to lower cost the company can move part or all of its production facilities to the country from which its competition is coming, and enjoy such advantages as less costly labour, raw materials, or energy. Protecting foreign markets is often necessary, which can lead to a change from exporting to overseas investment.

Another reason why a company should be interested in entering new markets is by following the competitor. Once a competitor has set up a production plant in a country, management must decide rapidly whether to follow suit or risk losing the market forever.

„In many cases it is a forced move by the company to enter into new markets because if not, the company would stagnate and be left behind by its competitors.“ – Hjalti Sölvason, August 1996.

Being able to claim that the firm is a “multinational” creates the impression of importance, which can influence its customers. Stockholders and financial analysts expect firms to continue to grow, and those companies operating only in the domestic market have found it increasingly difficult to sustain that expectation. The faster growth of a company, helps also satisfy the management’s desire for expansion.

A company should ask itself the reasons for entering the market and assess the internal forces and capabilities of the company itself. There are also various ways to enter new markets: Exporting, wholly owned subsidiary, joint venture, licensing agreement, franchising, contract manufacturing, management contract and strategic alliances.

The importance of screening markets, analysing market indicators and factors are also factors to address when entering new markets. What does market research say about trends in the industry and other factors like financial risk, have been discussed.

Identifying and analysing competitors in order to bring to the surface their strengths and weaknesses, and the field trip should be made in order to smell and taste the market, and collect primary data. Segment the market into those areas where the company can position its services or products by gathering information about the customers.

Entry strategies and entry modes do vary between competitors. Two companies may perceive different risk as they evaluate the same market and therefore choose different entry modes.

Hjalti Sölvason graduated as a Systems Analyst from the Copenhagen Business School in Copenhagen and is now studying for an MBA at the University of Edinburgh. Hjalti has experience in the IT industry and has worked as a software system designer and programmer.

There are many different types of fasteners that are available. So, what are the criteria that you should focus on when looking for the right fastener manufacturer for your specific product demands?

First of all, you need to know that there are a wide range of fastener varieties to choose from, which includes screws, bolts, rivets, double end studs, etc… to name a few.

Fasteners are made of various types of materials and this is due to the nature of how they are used. You need specific materials for every different fastener. Stainless steel has always been the first choice for the manufacturing of fasteners. Some say that it is due to its ability to stand against the cosmetic corrosion, and also due to its nature that is much less magnetic compared to regular steel fasteners.

For your fast reference, there are many types of materials that can be chosen. It could be platinum, common steel, plastic or any other materials for custom made fasteners depending on their purpose.

One important aspect that you need to put into consideration before ordering your fasteners is to find out what technology is in place to manufacture it.

Implementing cold form technology allows fastener manufacturers to produce higher quality fasteners while keeping the production cost low. This technology also enables fastener manufacturers to provide fasteners with greater strength, reliability, and durability. It could also help to reduce the waste of raw materials compared to screw machining.

Another advantage would be that cold form technology enables engineers to prepare complicated fastener design and shapes in a single operation thus saving time and production cost.

Specialty Screw Corporation would be happy to help you with any questions regarding you fastener concerns. Please feel free to visit our site at http://www.SpecialtyScrew.com

Specialty Screw Corporation located in Rockford Illinois is a manufacturer of Ball Studs, Cold Headed Fasteners, Cold Headed Products, Cold Headed Special Fasteners, Collar Studs, Collar Bolts, Automotive Screws, Automotive Fasteners, Metric Fasteners, Special Automotive Fasteners, Bolts, Special Bolts, Engineered Fasteners, Special Cold Forming, Special Cold Heading, Special Fasteners, Special Pins, Special Rivets, Tapped Valves, Double End Studs, and Synergistic Assemblies. Markets served include the Automotive, Electrical, Recreational, Hardware, Outdoor Power Equipment, Lawn & Garden, Distribution, Hand Tools and Molded rubber/plastic products industries. Specialty Screw Corporation is also licensed to manufacture MAThread® and MATpoint®.

MAThread® and MATpoint® are patented thread designs.
MAThread and MATpoint are registered trademarks of MAThread Inc.