| Summary: | 碩士 === 國立臺灣科技大學 === 管理學院MBA === 104 === The cosmetics market is one of the more promising industries in Indonesia, with an estimated market value of US$ 1.42 Billion in 2012. It currently has a strong growth of around 15% in the last 3 years and is expected to continue to have strong growth of 10-15% in the future. The growth is supported by increasing middle class segment and purchasing power of the population. Thus, it has attracted so many companies to enter cosmetics market in Indonesia, one of them is TCY Cosmetics Co. Ltd., a Taiwan-based small-medium cosmetics company.
This study aims to find the market entry strategies that would be used by this Taiwan company to enter an emerging market (Indonesia). The study examines both internal and external factors that influence the company to venture into the new market. Furthermore, the base for the start of internationalisation process is company’s inner motives and resources. Motives and resources combined with the cultural distance, competition and general external environment of host country form potential company-specific risks for the entry to foreign market. Potential customers in combination with company resources shows how big is the match between market demand and what company can offer and therefore determines the potential reward. Risks and reward are both input to the decision making process where the potential benefits and drawbacks are analysed against each other. The output of this decision making is the entry strategy.
In conclusion, the most effective entry strategy for the entry to emerging markets is indirect exporting through an agent in case there is high location risk, moderately high competition risk, medium country risk and moderately low demand risk, the company has no surplus finances for big investments and no prior experience in doing business in an emerging market.
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