A clothing company wants to explore new markets to increase sales of its clothing line.It has identified Kenya as a potential new market but wants to initially look at a low-risk, low-return option to assess the market.Which of the following entry strategies is the most suitable for the firm?

Question

Quizplus · Accepted Answer

Exporting would be the most suitable option for the firm as it is a low-risk, low-return option which would allow the company to test the Kenyan market without making a significant investment. The company can use intermediary agents or distributors to sell their clothing line in Kenya. This option would allow the company to gather valuable market information that can help in making further market entry decisions.

A Clothing Company Wants to Explore New Markets to Increase