Question

What market entry strategy should The Very Big Corporation (VBC) consider while entering the Brazilian market for the first time with their line of small electric appliances, considering their high-quality products and successful track record?

A) Implement a skimming pricing strategy to target a niche market segment.

B) Begin with market penetration to gain a foothold and then expand gradually.

C) Start with an intensive distribution strategy and then shift to an exclusive approach.

D) Adopt a competitive pricing strategy to quickly capture a significant market share.

Answer 1

The Very Big Corporation (VBC) should consider using market penetration as their market entry strategy for entering the Brazilian market with their line of small electric appliances.

Step-by-step explanation:

The market entry strategy that The Very Big Corporation (VBC) should consider while entering the Brazilian market for the first time with their line of small electric appliances, considering their high-quality products and successful track record, is option B) Begin with market penetration to gain a foothold and then expand gradually.

Market penetration involves entering a new market with existing products to gain a significant market share. VBC can leverage its high-quality products and successful track record to attract customers and establish a strong foothold in the Brazilian market. This approach allows VBC to gradually expand its product line and reach a wider consumer base.

The use of market penetration as a strategy is especially effective when entering a market with significant barriers to entry, as it allows the company to overcome the obstacles and establish itself as a player in the market.