Market Selection & Entry Mode Flashcards
Steps in Foreign Market Enrty
Identify Internationalization Objective
Identify required resources/capabilities to internationalize
Compare & rank targeted countires, in terms of fit to internal/external conditions
Country Comparisan Tools/Framework
Cage/Pestle
Risk Framework
>Integration/differentation Framework
FDI Motives
Market Seeking
Efficiency Seeking
Natural resource Seeking
Strategic Asset Seeking
Other Dimensions companies consider
number of foreign countrries active
Difference of foreign countries active
Modes of operation
Internal vs. external handling of operations
Entry Mode Choices:
Timing in market Entry
Speed of expansion
Scale of entry
Level of commitment
Establishment mode
Type of entry mode
Export
Countertrade
Licensing (products/trademarks)
Franchising (business’s entire brand & operations)
Management Contract
Turnkey Projects (siemens Egypt)
Joint Venture
Wholly owned subsidiary