Challenges Faced by Companies Entering Foriegn Markets

Challenges Faced By Companies Entering Foreign Markets Case of Rocket Internet’s Sabunta August 2012 1. INTRODUCTION Companies move into foreign markets for various reasons. In certain cases, it is towards achieving a required sales volume. In other instances, it might be a bid to increase brand awareness. Other companies go into foreign markets to re-invigorate sales after their products have gone through their life cycle - from inception to decline - in home markets. Regardless of reason, moving into a foreign market tends to portend great opportunities for companies, particularly if it entails serving products in an emerging economy that has recently become wealthy enough to afford such products; or selling a new but†¦show more content†¦Countries tend to enact laws intended to protect or enable local industries. These legislations take many forms. They could be outright levies on foreign businesses; or banning of the activities or management structure of foreign companies; or may be through more indirect means such as required licenses or permits to operate; cumbersome registration processes or permit procedures. 4 David Ogah, â€Å"Expatriates, some semi-skilled, take over even menial jobs from Nigerians†, The Guardian Newspaper Nigeria, December 21 2011, http://www.ngrguardiannews.com/index.php?option=com_contentamp;view=articleamp;id=71436:expatriates-some-semi-skilled-take-over-even-menial-jobs-from-nigerians-amp;catid=72:focusamp;Itemid=598, accessed August 2012. 3. NIGERIAN E-COMMERCE E-commerce is the buying and selling of products or services over electronic systems such as the Internet and other computer networks. E-commerce uses the World Wide Web at one point in the transactions life-cycle, although it may include a wider range of technologies such as e-mail, mobile devices and telephones. ------------------------------------------------- The major customers of e-commerce businesses are individuals living in major urban centres in Nigeria, notably Lagos, the commercial capital; Abuja, the political capital; and Port Harcourt, an oil rich city in Southern Nigeria; as these cities tend to house the highest number of internet users in Nigeria. 5NigeriaShow MoreRelatedChallenges Faced by Companies Entering Foriegn Markets5883 Words   |  24 PagesChallenges Faced By Companies Entering Foreign Markets Case of Rocket Internet’s Sabunta August 2012 1. INTRODUCTION Companies move into foreign markets for various reasons. In certain cases, it is towards achieving a required sales volume. In other instances, it might be a bid to increase brand awareness. Other companies go into foreign markets to re-invigorate sales after their products have gone through their life cycle - from inception to decline - in home markets. Regardless of reasonRead MoreResearch on Foreign Exchange Risk Management13065 Words   |  53 Pages1 CHAPTER 1: PLAN OF THE RESEARCH 4 1.1. INTRODUCTION 5 1.1.1. Features of Forex Market 6 1.1.2. Functions of Forex Market 7 1.1.3. Structure of Forex Market 8 1.1.4. Needs for Foreign Exchange 9 1.1.5. What Does Forex Provide? 9 1.1.6. Methods of Quoting Exchange Rates 9 1.1.7. Types of Transactions 11 1.1.8. Factors Affecting Exchange Rates 12 1.1.9. Factors Affecting Indian Rupee 13 1.1.10. FORIEGN EXCHANGE RISK 17 Classification of Foreign Exchange Risk 17 1.1.11. Trends in currencies