Table of Contents
Different Entry modes:
Entry mode for the Indian market:
Selected mode for entry: Export
The company Mex Pharmaceuticals has recently come up with a groundbreaking medicine “Coden” that will effectively treat the respiratory issues faced by COVID-19 patients, thus saving millions of lives. The medicines will first be launched in India, and subsequently made available in other countries. This report states the entry mode that will be adopted by Mex Pharmaceuticals to enter the Indian market and their reason for doing so.
There exists a variety of ways by which a company can enter a market like direct exporting, franchising, partnering etc (BIDC, 2020). Selecting an apt mode depends on various factors like the age and maturity of the market, export rates in the country and other such factors. In this case, an existing company, Mex Pharmaceuticals, is about to enter an existing market, Indian market.
After careful analysis, the company has decided to export/import the medicines into the Indian market. Exporting essentially implies that the product will be produced and manufactured in the home country and then exported to the market for sale (Morschett et. al., 2010). From research, it has been pointed out that exporting is the fastest way to make a product available in the market (Morschett et. al., 2010). This model implies that the company will be exporting the already existing product into the Indian market. This will require the company to get the medicine approved by the government of the country along with passing the safety tests that are required by all medicines. As soon as the medication is approved, it will be made available on prescription in all major hospitals of the country. Since it is a prescription medicine, no major advertising campaigns will be planned and executed by the company.
The method of exporting is not only faster but also has a lower financial risk as compared to the other modes of entry (Bai et. al., 2017). The company is not indulging in the methods of partnership/subsidiaries as these modes consume a lot of time and expenditure and the company looks forward to launching the medicine “Coden” as soon as possible. This method will also save the expenses that accompany the process of establishing operations in a country. The company will acquire a transport partner and subsequently establish a safe travel route that will be taken by the company. This method will also require the company to establish formal relations with the government of the country.
The medicine “Coden” has been formulated after extensive efforts and resources to help the people of the world prevent deaths from COVID-19, and hence speed is of essence to the company. The company wants to make the medicine available in the market as soon as possible and help as many people as possible. Hence, the company will avoid taking longer routes to make itself available in the market and go for the fastest way possible, to start saving lives immediately.
Bai, X., Krishna, K., & Ma, H. (2017). How you export matters: Export mode, learning and productivity in China. Journal of International Economics, 104, 122–137.
BIDC. (2020). Market Entry Modes | BIDC. Retrieved from http://www.bidc.org/exporters/growing-your-exports/market-entry-modes
Javalgi, R. G., & Wright, R. F. (2003). An international market entry model for pharmaceutical companies: A conceptual framework for strategic decisions. Journal of Medical Marketing, 3(4), 274–286. DOI:10.1057/palgrave.jmm.5040131
Morschett, D., Schramm-Klein, H., & Swoboda, B. (2010). Decades of research on market entry modes: What do we know about external antecedents of entry mode choice? Journal of International Management, 16(1), 60–77.
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