International Marketing and Sales

Nowadays, a progressively more dynamic and global economic environment causes a higher number of enterprises to pick an entry strategy to become international. The choice of a strategy of entry into foreign markets constitutes one of the most relevant decisions for a company, for it impacts on its performance and means it is being ready to cooperate, to a greater or lesser extent, with global supply chains. The present article identifies the determining factors of the strategies of entry into international markets as implemented by Peruvian businessmen, which impact on the integration level into an international market. The companies that participated in this exploratory study have growing exportation levels within the non-traditional sector. The results allow to appreciate exporters employing entry strategies with low levels of integration and predominantly prefer low-risk markets and high resemblance to the Peruvian market, with regard to cultural affinity and business behaviour. An important decision companies make at the moment of becoming international in order to reach greater growth and competitiveness is the choice of an entry strategy, for the choice they make and the way the strategy is implemented can determine the success or failure of their international enterprise. On one hand, a company might decide to become fully integrated and establish a subsidiary in a foreign market. On the other hand, a company might decide to hire independent distributors and be in charge of attracting new clients. In each level of integration, the degree of risk and control varies as well the degree of collaboration (Fig. 16.1).