INTERNATIONAL

Apuntes

INTERNATIONAL MARKET INTELLIGENCE FJ25 ENTRY MODE SELECTION IN INTERNATIONAL MARKETS 1 International market success or failure is in a great extent determined by the entry mode that is chosen Entry Mode • Structural agreemen t that allows a firm to implement its product market strategy in a host country by carrying out only marketing operations (exports) or both production and marketing operations by itself (foreign investment) or in partnership with others (joint ventures, franchising, etc.) DECISION MAKING PROCESS OF ENTRY MODE 1. Motives (why to enter) 2. Timing (when to enter) 3. Mode of operation (how to enter) Motives for Entry RESOURCE SEEKING MOTIVES • Involves access to specific resources (raw materials, components, local infrastructure, skilled human resources, technologica l capabilities, etc.) • Question: Where to find this specific resource? How to best secure access to them? MARKET SEEKING MOTIVES • Relate to seeking, sustaining and exploiting overseas markets • Question: Where do we find potential future customers? EFFICIENCY SEEKING MOTIVES • Aim to benefit from a rationalization of their geographically disperse value chains • Key objective: reduc...