France owns Clipperton, a hexagonal island that entirely includes a freshwater lagoon with no movement. It has tropical oceanic weather with 20–32 °C on average. From May to October, during the monsoon season, tropical thunderstorms and cyclones are possible. Warmer water waves from the equatorial and anti-equatorial axes push the encircling waters. There are no recognized natural resources there. The only business output in the region is tuna fishing, even though 115 varieties of fish have been discovered in the neighboring waters.
Although the island’s economy is regarded as strong, there aren’t many commercial opportunities because of its small population. Only businesses involving tourism or the trade of tuna fish are permissible. One can launch a successful travel agency in the region as well. The nation does not allow a simple entry into its market. It might be a smart move for expats to buy an existing company or hire a local broker for market access.
The effective market entry techniques for Clipperton Island are listed below.
Greenfield investment
Investing in greenfield projects is a sophisticated market entry strategy that some businesses select to employ. These expenditures include purchasing the land and materials necessary to construct a facility abroad and hiring personnel to run it. You may buy a small piece of land to start a fishing business and then export your products. You can hire local staff to do the job for you.
Greenfield investments can expose a business to high threats and high expenditures, but they can also assist businesses in adhering to legal requirements in a new market. Large, well-known corporations often profit from these investments, as opposed to start-up businesses.
Franchising
if you run a travel-related or fish export industry. On the island, you can open your franchise. A chain retail business is considered to be a franchise when a single person or group of people pays for the license to oversee corporate outlets on the firm’s behalf. Franchises are most prevalent in North America, but they are available elsewhere and give companies the chance to grow internationally. Strong brand awareness is often necessary for franchising since customers in your market segment need to be aware of what you have to offer and want to buy it. For businesses with well-known trademarks, franchises provide a means of making money while adopting an indirect supervision style.
Buying a company
If your business wants to sell a product without undergoing the filing and promotional phase, think about purchasing an established firm in the area. Owning a business with a strong local presence gives your business the status of a local business, which can help boost sales. Despite being costlier than other market entry strategies, owning a business can yield a sizable return on investment.
Partnership
Partnering is practically necessary when accessing global markets. There are numerous methods to collaborate, from a simple co-marketing agreement to a complex strategic collaboration for output. The partnership strategy is especially useful in situations where the corporate and social cultures are significantly dissimilar from your own. Make sure to pick a local ally if you are unfamiliar with the island’s culture and trends. Local partners provide clients, connections, and market knowledge.
Challenges in Clipperton Island
To access the 12-nautical-mile territorial waters surrounding the island or to reside on the island, a special license granted by the French administration is necessary. Provided the peculiarity of the atoll, such approvals are rarely issued and nearly always given to research missions. In the harsh environment of Clipperton, where there is no drinkable water, animals struggle to survive. This makes it nearly impossible to launch a business on the island or participate in its market. Along the process, you could run into a lot of obstacles, and the gain might also be extremely small.
