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Chapter 5 Target Markets and Modes of Entry
Market participation decisions—selecting global target markets, entry modes, and how to communicate with customers all over the world—are intimately related to decisions about how much to adapt the company’s basic value proposition. The choice of customers to serve in a particular country or region and with a particular culture determines how and how much a company must adapt its basic value proposition. Conversely, the extent of a company’s capabilities to tailor its offerings around the globe limits or broadens its options to successfully enter new markets or cultures. In this chapter, we look at the first two of these decisions: selecting target markets around the world and deciding how best to enter them. In Chapter 6 "Globalizing the Value Proposition", we introduce a framework for analyzing choices about adapting a company’s basic value proposition. In Chapter 7 "Global Branding", we take up global branding, one of a company’s primary vehicles for communicating with customers all over the world (Figure 5.1 "Market Participation").