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Market Entry Strategies to Operate in Global Markets

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Market Entry Strategies to Operate in Global Markets
“The various market entry strategies to operate in global markets” By: Ahmed Moguib

Table of Contents: 1- Research Objectives 2- General Introduction 3- Global Market Entry Strategies: Advantages and Disadvantages a. Exporting b. Franchising c. Acquisition d. Merger e. Joint Venture 4- Conclusion 5- Bibliography

Research Objectives:

This research is undertaken to identify, analyze and evaluate the various market entry strategies in global markets. Specifically, the research will examine exporting, franchising, acquisition, merger, wholly owned subsidiaries and joint ventures. Furthermore, the research will also analyze entry strategies implemented by a number of multinational corporations operating in different industries. Finally, the research will conclude with the factors that need to be examined and investigated before entering a global market.

General Introduction:

Multinational firms deciding how to enter or operate in a global market must carefully and precisely take into consideration many critical factors including the local business environment in addition to the firm’s own core competencies. An entry mode is defined by Wild & Wild (2012) as “the institutional arrangement by which a firm gets its products, technologies, human skills, or other resources into a market.” (Wild & Wild, 2012, p.358)

Wheleen & Hunger (2010) stated that research had indicated that growing globally is linked with the organization’s profitability. This means that firm’s who are looking for ways to increase their long-term profitability, are now looking for profitable and appropriate markets to offer their products and or services. A firm can select from a number of strategic options the most appropriate method for entering a global market or establishing production plans in another nation.
Zekiri & Angelova (2011) argued that Firms that want to internationalize must decide on



Bibliography: 1- Wild, J & Wild, K. (2012). “International business: the challenges of globalization.” (6th ed.). London: Pearson Education 2- Wheleen, T 3- Kotler, P. & Armstrong, G. (2008). “Principles of marketing.” (12th ed.). New Jersey: Peasron Education 4- Shaver, J 5- Zekiri, J. & Angelova, B. (2011). Factors that influence entry mode choice in foreign markets. European Journal of Social Science, 4(22), 572-584. Retrieved from Ebscohost research database. 10- Riley, J. (2012). Growth strategy: are acquisitions worthwhile?. Retrieved from http://www.tutor2u.net/business/strategy/growth_acquisitions_worthwhile.html 11- Investopedia 12- Chung, H. & Enderwick, P. (2001). An investigation of market entry strategy selection: exporting vs foreign direct investment modes. Asia Pacific Journal of Management, 18, 443-460. Retrieved from Ebscohost research database.

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