The Study On International Market Entry Mode Optimization Of LP Company

With the worsening of the worldwide energy shortage, countries around the world are adjusting the pace to develop solar energy and other new energy sources as never before, issuing various policies to encourage and promote the development of renewable energy sources. According to the prediction of SUN & WIND ENERGY, in the next 10 to 15 years, the consumption ratio of solar energy will achieve about 20%. At that time, the sales area of global solar water heater market will be more than 100 times of today’s. Solar energy enterprises will usher in a greater market space.Currently, China has the largest solar water heater ownership in the world, accounting for more than 70% of the production and installation of the world market. However, the export proportion is relatively small, which only accounts for about 1% of the overall sale. As result, the development of the international market is becoming the development direction of more and more solar energy enterprises.LP Company started its exports since 2004, and now has an annual export of about 8 million dollars, with its products exported to more than 40 countries and regions of the world. Although the company has made some efforts and achievements in terms of internationalization, the annual export still remains at about 8 million dollars in recent years with no big breakthrough. On one hand, it is because the global economic weakness brought by the US subprime mortgage crisis and the financial crisis. What’s more important, it is because that the company is lack of a set of international market entry strategies. The international market entry still focuses on export, blindly like going fishing as long as there are fish to catch with no target market analysis and positioning or instructional strategies of market entry. Based on this, this paper analyses the existing international market entry mode of LP Company, and optimizes the entry mode of LP Company combined with the industry development trend and the actual situation of international target market.Through the investigation and case study methods, this paper analyses the problems of existing mode, optimizes the design of entry mode according to the various internal and external environmental factors of the target market and combined with the advantages and disadvantages of LP Company, and elaborates the implementation guarantee of the entry mode in order to ensure the smooth implementation of the entry mode. This has a strong practical significance for LP Company to further explore overseas markets, improve market share and achieve the international market strategy developed by the company. At the same time, it also has some reference significance to other companies within the industry in developing international market.