Entry Strategies

Topics: Firm, Management, Control system Pages: 4 (967 words) Published: March 25, 2013
1. Why would managers favor using wholly owned subsidiaries over other methods, such as JVs, franchising, licensing, or exports? 2. If a firm is expanding internationally, should it adopt a global or multidomestic strategy? (Each may be appropriate, depending on economic, political, social, and competitive conditions).The choice between entering a marker on a small scale versus a large scale is a decision associated with levels of risk and reward.

3. Why might a firm prefer to export than to license, franchise, or to operate foreign subsidiaries? 4. Discuss the role of strategy, structure and rivalry within the domestic industry, and of demand conditions in contributing to national success in an international industry, according to Porter’s ‘diamond” model.

5. Discuss the role of related and supporting industries, and of factor endowments in contributing to national success in an international industry, according to Porter’s ‘diamond” model.

6. Franchising is a frequently used method to expand capacity and to enter new markets, especially for services, hotels, and restaurants. Under what conditions is use of this method warranted? What risks exist? 7. How might a firm use its foreign subsidiaries or operations to increase innovation in its home market?

8. Why is the assessment of political and economic risk so important to multinational firms? Is this skill likely to become less or more important in the future?

9. Given that entry into equity joint ventures and other strategic alliances opens the firm to the risks of cheating by its partner(s), it follows that partner selection is important. How would you approach the process of partner selection and what criteria would you use?

10. Why do many firms enter strategic alliances in foreign markets, even when the firm has the skills to compete effectively, as demonstrated by the firm's competitiveness in its home market?

11. Why is it that only first movers...
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