ort suggests the formation of a joint venture as the preferred mode of entry into the Indian market however; the ratio of failure of joint ventures is relatively high and the firms to fail very quickly. There is also an element of creating a cultural cohesion and managing the diversity which Indian market can offer.
In terms of sales activities, it is important that the firm must engage into B2B activity and manage its sales through creation of a dedicated sales force for personal selling mode of generating the sales.
Exporting involves directly exporting the product of the firm into the market where firms wants to get entry. Exporting is desirable by those firms which tend to keep operational control of their products into their own hands besides launching and maintaining its own brand name in the international market. Exporting can also be done through piggybacking wherein the firm can actually utilize the available logistic and distribution networks of existing businesses to distribute and sell its products.
It is important to note for successfully exporting a product, exporter requires the help and support of not only the importers but also that of the government as well as the transport. For successful completion of export targets, it is therefore critical that the exporter must strike a balance between the two. Further, the risk of high early failures is relatively high as business of this type often fail to materialize properly thus forcing exporters to look for some other alternative channels to continue to operate in the chosen market. Such high riskiness of the export will therefore may not be suitable for the firms engaged in B2B type of business.
Forming joint ventures is another important mode of entry wherein the firm can participate through equity to formulate a new company. Joint ventures are especially helpful in gaining access to the technology as well as the core competencies of other firms besides utilizing the local knowledge of the firms