Tải bản đầy đủ - 0 (trang)
International Entry Strategies: Advantages and Critical Success Factors (contd.)

International Entry Strategies: Advantages and Critical Success Factors (contd.)

Tải bản đầy đủ - 0trang

International Entry Strategies: Advantages

and Critical Success Factors

(contd.)

Strategy



Advantages



Critical Success Factors



Joint ventures



Insider access to markets

Share costs and risk

Leverage partner’s skill base,

technology, local contacts



Strategic fit and complementarity

of partner, markets, products

Ability to protect technology

Competitive advantage

Ability to share control

Cultural adaptability of partners



Wholly owned

subsidiaries



Realize all revenues and

control

Global economies of scale

Strategic coordination

Protect technology and

skill base

Acquisition provides rapid

entry into established

market



Ability to access and control

economic, political and currency

risk

Ability to get local acceptance

Repatriability of profits



Prentice



Chapter 6



23



Factors Affecting Choice of International

Entry Mode

(Exhibit 6-8)



Factor Category

Firm Factors



Prentice



Chapter 6



Examples











International experience

Core competencies

Core capabilities

National culture of home

country

 Corporate culture

 Firm strategy, goals, and

motivation



24



Factors Affecting Choice of International

Entry Mode

(contd.)



 Industry Factors



 Location Factors



Prentice



Chapter 6



 Industry globalization

 Industry growth rate

 Technical intensity of industry

 Extent of scale and location

economies

 Country risk

 Cultural distance

 Knowledge of local market

 Potential of local market

 Competition in local market



25



Factors Affecting Choice of International

Entry Mode

(contd.)



 Venture-specific Factors



Prentice



Chapter 6



 Value of firm – assets risked in

foreign location

 Extent to which know-how

involved in venture is informal

(tacit)

 Costs of making or enforcing

contracts with local partners

 Size of planned foreign

venture

 Intent to conduct research and

development with local

partners



26



Strategic Choice

The strategic choice of one or more of the entry

strategies will depend on

1)



2)

3)



a critical evaluation of the advantages (and

disadvantages of each in relation to the firm’s

capabilities,

the critical environmental factors, and

the contribution that each choice would make to the

overall mission and objectives of the company.



Prentice



Chapter 6



27



Alliance-based Entry Modes

Alliance-based entry modes are more suitable

under the following conditions:

• Physical, linguistic, and cultural distance between the

home and host countries is high

• The subsidiary would have low operational integration

with the rest of the multinational operations

• The risk of asymmetric learning by the partner is low

• The company is short of capital

• Government regulations require local equity participation

Prentice



Chapter 6



28



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

International Entry Strategies: Advantages and Critical Success Factors (contd.)

Tải bản đầy đủ ngay(0 tr)

×