Li Xin
CROSS-BORDER E-COMMERCE AS AN INTERNATIONAL MARKET ENTRY STRATEGY *
Аннотация:
from a global perspective, internationalization as a trend has already begun at early stage. Multinational companies that currently dominate the economy and society can be regarded as concentrated representatives of the highly internationalized development of enterprises and industries. This paper suggested company should use global sight to choose e-commerce as a hybridize entry strategies
Ключевые слова:
globalization, cross-border e-commerce, international market entry
УДК 658.6
Li Xin
master student of Saint-Petersburg
Peter the Greatest Polytechnic University
Department of Economic and Management
(Russia, Saint-Petersburg)
CROSS-BORDER E-COMMERCE
AS AN INTERNATIONAL
MARKET ENTRY STRATEGY
Abstract: from a global perspective, internationalization as a trend has already begun at early stage. Multinational companies that currently dominate the economy and society can be regarded as concentrated representatives of the highly internationalized development of enterprises and industries. This paper suggested company should use global sight to choose e-commerce as a hybridize entry strategies.
Keywords: globalization, cross-border e-commerce, international market entry.
Globalization is a process that deepens and broadens interdependence among countries which is also inevitable. Watson GF, Weaven S, Perkins H, Sardana D, Palmatier RW [1] points out globalization at the enterprise level is usually called international operations which is also a mechanism bring about globalization. Based on Hymer’s theory [2], representative of early international operation theory, typical international operations usually include the following aspects: Direct export activities; Establish and develop overseas marketing agencies or other representative organizations; License transfer of technology, franchise arrangements for business operations, etc.; Overseas production subsidiaries (or joint ventures) through creation or mergers and acquisitions. Hymer (1976) regarded foreign direct investment (FDI) as an important means of international operations and points out that other international operations include partial equity, licensing, and other channels. Johanson J [3] think internationalization is an important aspect in the continuous strategic decision-making process of a company which will determine the development and changes of international operations from different aspects such as business scope, business philosophy, strategic goals, organizational principles and values. The characteristics of the internationalization process itself will also have an impact on the mode and rhythm of the internationalization of enterprises. In the research of the progress of international operation, product life cycle model, internationalization process model, structure follows strategy model are most representative. From the perspective of market entry mode and the analysis of influencing factors, which shows characteristics of market entry. Indirect and direct exports, franchising and licensing have the ability to enter the market quickly and shows the lower investment risk, but their market control is weakened; Overseas branches and wholly owned subsidiaries have a slow entry speed with high risk investment, but the control ability and proximity to the market are high; Strategic alliances, turnkey contracts, management contracts and international joint ventures are at a relatively medium level in all four dimensions.
Historical views of international market entry strategies entail three major approaches, according to their level of relevance: Transitional, relational, or hybridized. Transitional approaches focus primarily on a set of profit-maximizing, risk-minimizing channel structure decisions (physical and/or digital) to deliver goods and services to an international market. Anderson and Narus [4] analyzed the relationship of manufacturing–distributor exchanges, product life cycles, and managerial perceptions of international market entry to maximize profit. Relational approaches focus primarily on a set of strategies that seek to establish, maintain, and develop effective and mutually beneficial relationships between exchange partners (Leonidou et al. 2014). Hybrid approaches focus on determining the appropriate mix of relational strategies employed within a channel structure that makes use of digital communication technologies to deliver the firm’s product or service in a foreign market. With the emergence of e-commerce, Internet communication technologies have a significant and growing influence on business transactions in many markets. Digital approach enables businesses to identify and exploit market opportunities faster and across wider geographic areas than was previously possible.
Cross-border e-commerce is a hybrid approaches of entry. From the perspective of marketing, it is also composed of four basic strategies: product, price, channel (Place) and promotion combination of 4Ps marketing theory (The Marketing Theory of 4Ps). Among them, the channel refers to the way that an enterprise reasonably chooses distribution channels and organizes the physical circulation of products to achieve its marketing goals. Cross-border e-commerce refers to the conduct of online ordering, payment and settlement between transaction entities in different borders and regions through e-commerce, and merchants deliver goods through cross-border logistics, clear customs, and finally deliver the goods to the sellers. Therefore, cross-border e-commerce is a new way of foreign trade development, and it is also an effective way for enterprises to expand overseas marketing channels, enhance brand competitiveness, and realize the transformation and upgrading of foreign trade.
More and more brands are establishing their own e-commerce businesses on e-commerce platforms such as Amazon and eBay. It can be seen that cross-border e-commerce has gradually become the first choice of enterprises and small business enter the foreign market. However, how to continue to discover the potential of E-commerce in foreign market as possible are important issues worthy of consideration by many e-commerce companies.
The target country’s market factors, environmental factors, production factors, and domestic factors are external to the enterprise and can be regarded as entry mode selection or decision-making parameters. Generally speaking, there is no single external factor that can have a decisive influence on a company's market entry mode. Therefore, when it’s applied to Cross-border e-commerce, it’s important to the select the products whose quality, price and appearance most meet the needs of the target market from many supply markets. Product selection is the key to the success of cross-border e-commerce. As demand and supply are constantly changing, selection is also a daily job for companies engaged in cross-border e-commerce.
In the process of developing cross-border e-commerce as an entry strategy, Enterprises must not only realize that driving force and positive effect brought by high-level cross-border e-commerce when entering international market, It is also necessary to analysis that cross-border e-commerce affected by political, legal, cultural, historical traditions, geography Customs and human relations and many other issues of involving domestic and foreign economic.
REFERENCES:
Watson GF. Weaven S, Perkins H, Sardana D, Palmatier RW. International Market Entry Strategies: Relational, Digital, and Hybrid Approaches // Journal of International Marketing. 2018. 26(1):30-60.
Hymer S H. The International Operations of National Firms: A Study of Direct Foreign Investment // Journal of International Management, 1976. 8.
Johanson J. The Mechanism of Internationalization // International Marketing Review, 1990, 7
Anderson, James C., and James A. Narus. A Model of Distributor Firm and Manufacturer Firm Working Partnerships // Journal of Marketing, 1990. 54 (1), 42–58.
Leonidou, Leonidas C., Saeed Samiee, Bilge Aykol, and Michael A. Talias. Antecedents and Outcomes of Exporter– Importer Relationship Quality: Synthesis, Meta-Analysis, and Directions for Further Research. // Journal of International Marketing. 2014. 22 (2), 21–46.
Номер журнала Вестник науки №4 (49) том 1
Ссылка для цитирования:
Li Xin CROSS-BORDER E-COMMERCE AS AN INTERNATIONAL MARKET ENTRY STRATEGY // Вестник науки №4 (49) том 1. С. 114 - 117. 2022 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/5451 (дата обращения: 08.05.2024 г.)
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