Hippos is a manufacturer of consumer goods. It intends to sell its products in Taiwan as it is looking to enter into Asian markets. It does not want to make any equity investment and prefers to minimize any risk of loss in the foreign market. It is also willing to settle for a low rate of return and little control. Which of the foreign market-entry strategies is Hippos most likely to pursue?

Question

Business

Seamus

23 June, 16:53

Hippos is a manufacturer of consumer goods. It intends to sell its products in Taiwan as it is looking to enter into Asian markets. It does not want to make any equity investment and prefers to minimize any risk of loss in the foreign market. It is also willing to settle for a low rate of return and little control. Which of the foreign market-entry strategies is Hippos most likely to pursue?

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Answers (1)

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Gaige Mayer · Answer 1

indirect exporting

Explanation:

Based on the information provided within the question it can be said that Hippos is most likely to pursue an indirect exporting. This refers to selling your goods to an intermediary who then sells it directly the customers. This is a great market entry strategy when entering a foreign market since it allows an individual who is already accustomed to the market sell the products, thus minimizing the risk of loss in the foreign market.