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International Strategic Operation

In: Business and Management

Submitted By 321654987
Words 2585
Pages 11
Introduction
Marketing entry strategies can be divided into three part: Entry objective, Timing of Entry and Mode of Entry (Lasserre 2008, p. 210). Entry objective always address question about “WHY”. Timing Entry asks about “WHEN” and lastly my main topic of the assignment is Entry Mode- “HOW”.
Major Decision Criteria
There some external and internal factor that will affect the choice of market entry strategies by Company. Koch (2001) contends that External factor comprises of Market Size/Growth/Barrier, Risk (Political, Operational, Economic and Competitive), Local Government Regulation/Requirement, Competitive Environment and Local Infrastructure.
Internal factor include Entry Objective (Market Development, Resources Access, Learning, Co-ordination), Need for control, Internal Resource and Capabilities, and Cost-Benefit analysis (Lasserre 2008).These both factors can be identifying through some framework like Porter Country Diamond (Porter, 1990), Country Risk, Market & Industry Attractiveness and PEST.
Timing of entry comprises four phase: Premature phase, Window phase, Competitive growth phase and Mature phase. The wrong choice of timing can have a great impact of a company on Sales, Performance, Brand Awareness and etc.
According to Frynas& Mellahi (2011, p. 164), the Entry Mode can be use by MNE(Multinational Enterprise) grouped into five main categories, that are Export, Licensing, Franchising, Joint Venture and Wholly Owned Subsidiaries- Greenfield Investment and Acquisition.

Comparing Entry Mode (Refer to Appendix 1)
There are two major types of entry mode using by MNE (Multinational Enterprise), Equity and Non-Equity modes (Refer to Appendix 2). Equity modes consist of Wholly Owned Subsidiaries – (Greenfield Investment & Acquisition) and Joint Venture that direct owner involvement. Also, Non-Equity modes such as Contractual…...

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