Different market entry strategies can be used to enter a new market, these strategies include mergers, acquisitions, joint ventures, exporting, Greenfield project, strategic alliances, franchising/licensing and whole subsidiary ownership (Janssen 2004, p. 556). Some of the factors that influence the choice of a market entry strategy include price localization, trade barriers, competition, export subsidies and localized knowledge (Grunig & Morschett 2012, p. 151). Globalization and foreign direct investments have been vital in global expansion of companies (Hill 2005, p. 67). This study suggests licensing as a market entry strategy that could be adopted by Rodl & Partner in its entry to South Africa (Rodl & Partner, 2012). South Africa is one of the well known markets that have well developed accounting, auditing and consulting industry and this makes the selection a suitable one for Rodl & Partner. South Africa enjoys a stable and developing economy and this has been a key attraction for foreign investors.
Rodl & Partner Ltd
Background of the company
Rodl & Partner is an international consulting and accounting firm with German origin. The company has established and built unique capabilities in the global consulting industry particularly in accounting, tax planning and attestation services for companies across various continents. The company has about 3200 partners located in about 130 countries across globe. The company provides customers with distinctive and high quality service in the various categories of accounting services (Rodl & Partner, 2012). Rodl & Partner has its strengths in tax, assurance and specialist advice. Rodl & Partner will be entering South African accounting and consulting industry in July 2012 and this will require the company to be well prepared in expanding its business in this new market so as to be able to promote its brand awareness in the global market.
Economic environment: South Africa has risen from international isolation and economic stagnation caused by apartheid era. The new phase of economic reconstruction has received encouragement and acclaim internationally (Thompson 2001, p. 23). The country was rated 25th in terms of advanced industrial sectors in the world in 1990s and has since then marked increasing growth.
- Quote paper
- Amos Kamau (Author), 2011, Market entry strategy, Munich, GRIN Verlag, https://www.grin.com/document/265519