...The concept of ‘internationalization’ is strongly related to a process of involvement and accurate decision making regarding the entry or expansion into new or existing markets taking into consideration dynamic factors and limitations that could influence the entrepreneur. As Buckley J. and Ghauri N. (1999:85, 86) state, the meaning is used to describe how growth of international businesses is mainly dependant on the ‘inward-outward interlink’, thus acquiring foreign commitment over time through a six dimension pattern. The framework suggests that the success of international companies is linked to foreign operation methods and the change tendency as well as sales objects and targeted markets, organizational structure and personnel together with finance and technology. Therefore, in terms of analysing the start-up for a new venture, entrepreneurs should focus on developing and integrating the abovementioned and as Oviatt and McDougall (2004:31) indicate, gain the competitive advantage through resource utilisation and output sale in multiple countries. In order to achieve that, proactive strategies such as alliances, manufacturing capacity or marketing expertise should be taken into consideration as suggested by Buckley and Casson (1976:4) and consistent with a value added approach rather than asset owned. Therefore, the strategy is more concerned with small and medium size firms which start up locally and then mature to become consistent with the MNE theory and foreign direct...
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...Modes of Entry into International Markets (Place) How does an organization enter an overseas market? Background A mode of entry into an international market is the channel which your organization employs to gain entry to a new international market. This lesson considers a number of key alternatives, but recognizes that alteratives are many and diverse. Here you will be consider modes of entry into international markets such as the Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we consider the Stages of Internationalization. It is worth noting that not all authorities on international marketing agree as to which mode of entry sits where. For example, some see franchising as a stand alone mode, whilst others see franchising as part of licensing. In reality, the most important point is that you consider all useful modes of entry into international markets - over and above which pigeon-hole it fits into. If in doubt, always clarify your tutor's preferred view. The Internet The Internet is a new channel for some organizations and the sole channel for a large number of innovative new organizations. The eMarketing space consists of new Internet companies that have emerged as the Internet has developed, as well as those pre-existing companies that now employ eMarketing approaches as part of their overall marketing plan. For some companies the...
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...Companies globalize in order to target a larger market. With a larger market, companies can increase their profit from the services and products that that would be accessible to a higher number of consumers. To go global, companies must begin with a strategic plan and then move on to full implementation. They must also develop a knowledge base through marketing research to ensure that that the right choices are being made. Companies must also concentrate on market entry through exporting and other low-cost, low-risk international expansions alternatives. With globalization comes great opportunity for growth but also the many challenges of entering brand new markets. CEO’s and marketing executives face marketing decisions that can affect the future of the company for many years to come. They must employ strategic planning to match new markets with products and corporate resources more effectively and efficiently to strengthen the company’s long term competitive advantage (Czinkota & Ronkainen, 2010). Daily decisions then fit into the company’s overall strategic marketing goals. Companies that implement a formal strategic planning process will increase profitability as well as improve various nonfinancial objectives. The first step of the strategic planning process is assessment and adjustment of core strategy. This begins by defining the business that the strategy is being developed for. Companies must understand exactly the business that is being conducted before...
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...Entry Plan into International Market Revlon’s Entry into Sweden Chari M. Calhoun Dr. James J. Ruether International Marketing June 13, 2015 Introduction: Company history In 1932, Charles and Joseph Reveson along with a chemist named Charles Lachman, founded Revlon (Revlon 2014). The company began by making a single product which was a unique type of nail enamel. Revlon is now an international corporation with a multi-million dollar net income. Cosmetics, hair care, skin care fragrances, deodorant/anti-perspirant, and other beauty care products are Revlon’s key products. Its products are sold in approximately 150 countries and six continents (Revlon 2014). The company operates in North America, Asia Pacific, Europe, Middle East and Africa (AMEA), and Latin America. It is headquarted in New York City, New York and employed approximately 6,900 people as of December 31, 2013 (Revlon,Inc. 2014). Market penetration strategies, developing new products, utilizing market development strategies, building its strong brands, expansion by introducing new consumer preferred products, and existing franchise extensions, are all part of the alternative corporate growth strategies used by Revlon. These strategies are the key element of the organization’s success. Sweden is a country in which Revlon could capitalize from strategically entering into the market and continuing its present consistent growth. Company profile and analysis The current president and chief executive officer...
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...STRATEGIES IMBA 2014/15 International Graduate Center (IGC) Hochschule Bremen University of Applied Sciences Prepared By: Bakaa Chkeir Sahil Sabharwal Eric Branson Smith Khandaker Nazmul Alam Table of Content Part – 1: Introduction Part – 2: Red Bull’s General and International Strategic Approach By Sahil 1-2 3-6 Sabharwal 7-10 Part – 3: Red Bull’s Branding & Segmentation Strategy By Eric Branson Smith 11-15 Part – 4: Red Bull’s BCG & ANSOFF MODEL By Bakaa Chkeir By Bakaa Chkeir Part – 5: Market entry and distribution strategy By Khandaker 16-24 Nazmul Alam 25-26 Part – 6: Bibliography PART 1: INTRODUCTION A Brief History of Red Bull from Red Bull Inspired by functional drinks from the Far East, Dietrich Mateschitz founded Red Bull in the mid 1980's. He created the formula of Red Bull Energy Drink and developed the unique marketing concept of Red Bull. In 1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home market Austria. This was not only the launch of a completely new product, in fact it was the birth of a totally new product category. Today Red Bull is available in more than 166 countries and around 40 billion cans of Red Bull have been consumed so far. As of the end of 2013, Red Bull employed 9,694 people in 166 countries - compared to the end of 2012 when we had 8,966 employees in 165 countries. In terms of further expansion, Red Bull is targeting the core markets of Western Europe and the...
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...Professor Department of International Business University Of Dhaka. Subject: Submission of the report on Modes of Entry into Foreign Markets. Sir, It’s been pleasure for me to submit my report on “Modes of Entry into Foreign Market”. This report contains the structure and material as instructed by you. I have tried hard to do my best and fulfill your expectation. The assigned work and the information gathering process involved with it gave me access to the areas, which I didn’t know before. However it is needless to say that, there may be some mistake in my organization, presentation and style. In completing the report I have tried my best in imparting ever available details of the, “Modes of Entry into Foreign Market” avoiding unnecessary amplification of the report. Thanking you, Yours faithfully Md.RazibulMatin ID. No: 801414091 EMBA Program Department of International Business University Of Dhaka. Table of Content SL NO. | TOPIC NAME | PAGE NO | | Letter of Transmittal | 1 | | Executive summary | 3-4 | Chapter-1 | Introduction | | 1.1 | Problem of Modes of Foreign Markets Entry | 5-6 | 1.2 | Rationale for Modes of Foreign Markets Entry | 6 | 1.3 | Scope and Objectives of the study | 6-7 | 1.4 | Methodology of the Study | 7 | 1.5 | Limitation of The Study | 7 | Chapter-2 | Literature Review | 8 | Chapter-3 | Modes of Entry into Foreign Market | | 3.1 | Market entry strategy | 9 | ...
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...International business or Global marketing is growing at a fast rate and there are more than 180 nations-sates in the world with different market and profitable potential. However for an organization to earn sufficient income in the global market it needs to know the right time and form of market entry mode whilst entering International market (Hill, 2003). Therefore this essay will focus and assess the need for an organisation to use a range of modes of entry while entering the international market. In due course it will give an overview on International marketing literature review, views on variety of entry modes, entry selection criteria, examples based on cased studies and conclusion. General Understanding of International marketing refers to marketing of goods and services from one country to another. Producing and marketing of products in more than one country is also termed as international or multinational marketing. But according to Mc Auley (2001) International marketing can be defined quite simply as “the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit” much similar to domestic marketing. However Kahler (1983) argues and identifies that “International marketing differs from domestic marketing for one basic reason: it involves doing business with individuals, firms, organizations, and/or government entities in other countries”. The author further argues that the difference...
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...THE CHURCH OF PENTECOST TOTTENHAM DISTRICT 7 TO 9YRS 1. Where can the story of Enoch taken up to heaven are found in the Bible? ANS Genesis 5:18-24 2. Quote 1 Peter 2:11-12. ANS. Dear friends, I urge you, as aliens and strangers in the world, to abstain from sinful desires, which war against your soul. Live such good lives among the pagans that, though they accuse you of doing wrong, they may see your good deeds and glorify God on the day he visit us. 3. What is the name of Enoch`s father? ANS. Jared 4. How old was Enoch`s father when he gave birth to him? ANS. 162 years. 5. After Enoch`s father gave birth to him, he lived for how many years before he died? ANS. 800 years 6. Jared lived for how long before his death? ANS. 962 7. Enoch gave birth to a son when he was 65years. What is his name? ANS. Methuselah 8. Enoch walked with God for how long after giving birth to his son? ANS. 300 years 9. Enoch had only a son. True / False. ANS. False. 10. Enoch walk with God, he later died and was buried. True / False. ANS. False 11. According to 1 Peter 2:11, the Bible says we should abstain from sinful desire because it fights against our mind. True/False. ANS. False ( against our soul) 12. We should only live good lives when we are in church and at home. True / False. ANS False 13. When people in the world see your good work, who do they give glory to? ANS. God 14. The widow of Zarephath `s story can be found where in the Bible...
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... Selection of Market Entry Mode Naveed Hussain Malik (naveed.hm@gmail.com) 770325-3059 Masood Hussain Chudary(zindagi03@hotmail.com) 801014-5855 Supervisor: Eva Wittbom Masters Degree Thesis in Business Administration School of Management Sciences Date of submission Abstract Development in infrastructure limits the communication gap, speedy travel and low cost tariff barriers as well other drivers of globalization have made overseas markets easier to get small firms and gave more opportunities to SME´s internationalize. The market entry mode choice or selections have strong effect the success or failure of the company. For instance an insufficient or wrong entry mode selection can decrease opportunities and limit important choice for the firm and could lead to high financial loss as well as lose control on overseas market. The purpose of research study is to provide a deep and better understanding of the factors those effecting SME´s selection of market entry mode. Research question how can the influence of internal and external factors on the selection of market entry mode. A frame of reference led to the building of summary which in turn became the basis for data collection. Two qualitative case studies for Pakistani SME´s namely socks knitter Pakistan and RK International were undertaken. The main findings shows the clear link between the theories claim to be internal and external factors influencing market entry mode choice between...
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...International Review of Business Research Papers Vol.3 No.1. March 2007, Pp.183 - 196 Entry Modes For International Markets: Case Study Of Huawei, A Chinese Technology Enterprise Donglin Wu* and Fang Zhao** This case study analyses and discusses the internationalization process of Huawei, a leading telecommunication equipment manufacturer in China. Our research aims to explore the special features of the internationalization of Chinese hi-tech firms through a case study and to identify the factors that affect Chinese hi-tech firms’ international entry mode decision. In this paper, several foreign market entry modes were discussed. Issues of why and how to take into account the factors of industrial characteristics, environmental factors, firm factors, and moderators for internationalization and how to employ different entry modes in different host markets are discussed and illustrated based on this case study. It is found that industrial characteristics and home country’s technological reputation affect to a great extent the internationalization path of the hi-tech firm studied. The research also shows that in terms of hi-tech enterprises’ internationalization, the factors such as international experience and firm size are not as important to traditional manufacturers as to hi-tech enterprises. Field of Research: Management 1. Introduction After two decades’ development, many Chinese technology enterprises stride their first step in internationalization. Among them...
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...Technology Mara Malaysia, Shah Alam, 15-17 June 2009, Volume 2, pp. 128-137 Entry Mode Strategies of Malaysian Service Firms: A Resource-Based Approach Mohammadreza Asgari*, Mohd Nazari Ismail**, Syed Zamberi Ahmad*** Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur ABSTRACT The rapid progress in services has attracted scholars to study the behaviour and decisions of service firms. Firms from Malaysia, as a developing country, with a fast growing economy that increasingly relies on services have shown a remarkable expansion into foreign markets, which has resulted in high foreign direct investment (FDI) outward inflows and increasing exports of services. This paper utilizes the resource-based theory, in which the main determinants of the choice of entry mode are organizational variables compared to environmental factors, to explain the choice of entry strategies made by Malaysian service firms and the motives for it. This study aims to develop a framework for the choice of entry mode strategies that has fewer shortages than others, analyze the determinants of entry mode strategy in order to find the similarities and differences existing between firms in the decision-making process for the choice of entry mode, and consider the role of psychic distance in adopting an appropriate strategy in different markets. Suggestions for future research are also presented. Keywords: Entry mode strategy, developing country, Malaysia, service industries, multinational...
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...A MODEL OF OPTIMAL INTERNATIONAL MARKET EXPANSION THE CASE OF US HOTEL CHAINS EXPANSION INTO CHINA E. Hachemi Aliouche, Ph.D. Associate Professor, Hospitality Management Whittemore School of Business and Economics UNIVERSITY OF NEW HAMPSHIRE, USA and Udo Schlentrich, Ph.D. Associate Professor, Hospitality Management Whittemore School of Business and Economics UNIVERSITY OF NEW HAMPSHIRE, USA ABSTRACT: Departing from the explanatory and descriptive approaches common in many of the academic studies of international expansion, this paper uses a managerial approach to develop and illustrate a process that can assist managers in the formulation of their international expansion strategies and plans. A comprehensive model of international expansion is outlined and applied to determine the optimal country to be targeted for entry by a US hotel firm and the optimal entry mode to be used. The model consists of three sections. Section One (macro assessment) identifies the major external macroenvironmental variables that determine the risks and opportunities of international expansion: market size, market growth and purchasing power; political, economic, legal and regulatory risks; and cultural and geographic distances. Through macro assessment, countries with the optimal risk/opportunity profiles are identified and ranked. Section Two (micro assessment) is applied to the optimal countries identified in Section One to estimate the potential profitability and financial value created (as...
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...article is to discuss on the effective modes of entry for businesses that is planning to venture into international market. The entry modes methods discussed are aimed to help businesses to formulate an effective international business strategy and to position themselves to be successfully established in the global market. The central theory introduced in this article is developed based on a comprehensive framework of the entry modes choices. These modes of choices would determine the success factor of the international business strategy, and to choose these choices there are several important factors to be considered. These factors include situational firm factors, foreign environment review, and moderating factors that would directly influence the firm’s desired mode of choice. Referring to Appendix A is the mode choice of framework by Driscoll that depicts the whole concept discussed. To briefly illustrate, the firm would need to evaluate the two situational factors that would directly affect its desired level of different modes of characteristics. Subsequent from the selected desired modes, the firm would also need to determine the potential moderating influences, which would affect the desired mode. Thus, reassessment based on the moderators would take place to determine the most effective modes of entry. By selecting the right mode of entry, the firm would incorporate an effective business strategy for its international business plans. The article written by Driscoll...
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...Market Entry Mode Strategies – A study of Bangladesh Mobile Telecommunication Market for Foreign Companies Authors: Debashish Barua Examiner: Prof. Anders Pehrsson Marketing, Master Programme Tutor: Prof. Mosad Zineldin Mahmudur Rahman Chowdhury Subject: Master Thesis, 4FE02E Marketing, Master Programme Level and Semester: Master, Spring, 2014 i Acknowledgement We express our gratitude to those people who helped us a lot in conducting the research work successfully. Their cooperation helped us to write a good thesis paper. We are grateful to our tutor Prof. Mosad Zineldin and examiner Prof. Anders Pehrsson who have provided valuable critiques, encouraged and guided us to write the thesis paper in right direction. Moreover, we would like to thank the three mobile telecom companies which have provided valuable information in conducting the research work. Finally, we would like to thank to our family members and friends for their motivational support throughout the study. Linnaeus University, Växjö School of Business and Economics June 2014 Debashish Barua Mahmudur Rahman Chowdhury ii Abstract Title: Market Entry Mode Strategies – A study of Bangladesh Mobile Telecommunication Market for Foreign Companies. Background: Now-a-days, the forces of globalization derive firms to go to international market. When a firm thinks to expand its business outside of the home market, it needs to explore the form of operation through which it will enter into the foreign market. International...
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...profile of International Business Thesis Advisor: Professor Svein Ulset Title: International Modes of Entry Subtitle: The Case of Disney By, Carlos Gonzalez Hernandez This thesis was written as a part of the master program at NHH. Neither the institution, the supervisor, nor the censors are -through the approval of this thesis- responsible for neither the theories and methods used, nor results and conclusions drawn in this work. International Modes of Entry: The Case of Disney 1 Abstract The case of Disney’s theme parks represents an opportunity to test major internationalisation theories in a setting of large investments with little chance for reversal of commitments. The purpose of the research is to study the benefit of different entry modes dependent on Disney’s Theme Parks value-generating resources and capabilities while conditioned to certain local industrial and institutional conditions in foreign markets. Five major theories and frameworks were used to analyze all four Disney’s ventures abroad. This resulted in 20 individual hypotheses analyzed. Results indicate that Disney followed a predictable internationalisation process in the cases of Tokyo, Hong Kong and Shanghai, but that it went off-path in the Paris one. In successful cases Disney followed a cautious approach, involving local partners to transfer and adapt the “Disney Experience”. In the case of Paris the company decided to enter the market alone, which neglected the unique needs of the local market. Page...
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