Market Entry in a Country With a Large Power Distance Index (PDI)

The Marketing Services
Student Name
Department, University
Course Code: Course Name
Professor’s Name
Due Date
The Marketing Services
The power distance index (PDI) reflects the degree to which the less empowered stakeholders of an organization or institution recognize that power is unequally distributed in the community. In market entry decisions, the power distance index informs managerial decisions based on how individuals with power differences should interact within a business organization. In this context, marketing managers should consider socio-cultural distance, political climate, market size, and growth rates when making marketing entry decisions into a society characterized by a high-power index.
Socio-cultural distance plays a central role when making market entry decisions into a high-power index country. The marketing manager should consider the target market’s dominant language, traditions, and values. Another crucial factor concerning socio-cultural distance includes consumer literacy levels. Countries with higher power distance indexes demonstrate strong bureaucracies, hierarchy, and community values (Qiu & Homer, 2018). Therefore, considering these factors ensures that the firm would provide service congruent to the target market expectations and values.
The target country’s political climate is critical in market entry decisions. Politica...