The ways of entering a new market There are several ways of entering a new market. The success of each of these methods of entering the market vary from one business and market to another. The common methods available in the market are: exporting, licensing, joint venture and direct investment (Lymbersky, 2008). Exporting This method of entering a new market entails marketing and sale of domestically produced goods to a foreign market. It is a conventional way of entering new markets. In this case, big and small business can send goods into a foreign or new market for distribution (Lymbersky, 2008). Some of the limitating factors to exporting as a way of entering a new market include the high cost of transporting goods, having to deal with local customs, and infrastructure development. An example of exporting would be that of a UK based manufacturer or supply who sells home-manufactured goods to a foreign country like the United States. Foreign Direct Investment In Foreign Direct Investment (FDI), a business transfers its capital and technological knowhow to a different country. FDI may also involve the acquisition of a running business (Lymbersky, 2008). Disney is a good example of a business that entered the European market where it established the European theme park. Licensing Also known as franchising, this method of entering a new market is popular with multinationals that wish to break even in foreign markets. Licensing entails having a presence in a new market. Licensing encompasses granting permission to a different business entity to produce and sell products of say, a multinational, based on the good brand name of the licensor (Lymbersky, 2008). McDonalds is an example of a company that has entered into different markets through licensing or franchising. Joint Ventures This is another common method that businesses use to enter a new market. Under this method, parties to an international joint venture share the costs and financial burden of operations. The parties involved in a joint venture also share profits equally (Lymbersky, 2008). The common objectives of a joint venture include: ensuring market entry, enabling sharing of technology, sharing of risks and rewards, facilitating conformance with government regulations and laws, and enabling joint product development (Lymbersky, 2008). Other business benefits associated with business ventures are political connections, and access to effective and established distribution channels. A good example of a joint venture is when Sainsbury, a UK-based company, wants to expand its operations into China. In this case, Sainsbury would have to enter into a strategic alliance with a Chinese based business and a new business venture is established. Joint ventures more desirable when the size, market power and resources of the individual companies are not sufficient relative to those of the competitors. Importance of making adjustments in market potential and market share figures Market share and market potential are both important factors that have to be determined in a business. Calculating the market share of a business entity is important as it gives an estimate of the total market potential for such a business. In regards to adjustment