Strategies of entering into new industries

This undergraduate paper has sought out to develop a framework at better understanding the strategies adopted by firms to enter a new market. In doing so, I want to enrich the existing knowledge on entry market strategies by adopting the Tisak’s point of view. It is crucial in a company to have good sense of direction, to possess intellectual knowledge about the market and to guide the business toward new ventures when the company has a potential to grow and develop. A successful company should encourage innovation and strive towards excellence and market leadership, but it can do so only if it generates new and applies existing knowledge in its products and services. I drew upon several bodies of knowledge: 1. Strategic analysis of Tisak 2. Choosing a strategy of entry into new markets 3. Risks of entering into new market The strategic analysis of Tisak is the largest part of this undergraduate paper because I wanted to give a thorough analysis of the company, including 3 SWOT analysis; one for Tisak and two for its biggest competitors – iNovine and Konzum, a PEST analysis, Porter’s five forces model and Porter’s diamond. The analysis indicated that Tisak, has no fear in stepping into new industries and that the environmental uncertainty presents no obstacle in the expansion of business. The second major insight, the strategic choice, includes the choice of different approaches of entering a new market and there is a lot of to choose from. Tisak, with the help of its mother company Agrokor, succeeded to enter new markets independently, without alliances, partnerships or market transactions. In the Ansoff matrix, Tisak used the market penetration strategy, diversification strategy and product development strategy in the market. Just like every entrepreneurial venture, nor entering a new market and a industry it doesn’t come without certain risks. Here I categorized the risks into 2 categories: systematic and unsystematic risk. To sum up, Tisak is a company that notices market changes on time, meaning on the markets that we do business in and they adapted to the new trends. Aside with distribution and retail of press and other assortment which is the main part of their business, today, the key businesses for them are distribution services trough Tisak package, electronic merchandise and services, financial services, distribution of toys and licensed products and taking care of non-dangerous waste. The speed of their development and the innovativeness are unique in the world, practically nowhere in the world is there a more advanced retail chain of kiosks which offers its customers that large range of products and services in just one place. But on the other hand I do not believe that any other company which is not in the ownership of Agrokor would be remotely so successful as Tisak is even if it had all the identical features as Tisak