Entry Mode Theory
The Entry Mode Theory
-Different Approaches-
Topic Paper for International Strategic Management
Outline
Abstract 3
Introduction 3
Overview of Entry Mode Theories 4 The Uppsala Model 4 The Uppsala Model - Example 4 The Uppsala Model – Limitations 5 Porter’s Diamond Model 6 Porter’s Diamond Model - Example 6 Porter’s Diamond Model - Limitations 8 The Born Global Concept 8 The Born Global Concept – Example 9 The Born Global Concept – Limitations 10
Conclusion - the comparison and relation of Entry Mode Theories 11 Chronological development 11 Level of risk 12 Time consumption 13 Investment cost 14 Typical type of corporation 14
References 16
Abstract
The literature focuses on three entry mode theories, being: The Uppsala Model, Porter’s Diamond and the Born Global Theory. In the following, the three theories will be briefly explained and with the help of a real-life example illustrated. After that, the theories are looked at from different dimensions. For a quick overview, a table considering the dimensions of year of publication, risk, time consumption, investment cost and the typical type of corporation was developed. This will enable the comparison process and the following conclusion.
Introduction
Entering a new market can be both profitable and challenging. Despite the risks involved, companies increasingly opt for establishing a branch in foreign markets. The reasons for this vary from location economies and economies of scale through to economies of scope, but are all built on the common goal of gaining access to a new market. All this was enabled by the ongoing increase of globalization, with lower transportation and communication costs. This paper tries to illustrate the various approaches on how to become an international operating company; and, in the following, will discuss, exemplify and evaluate the different approaches.
The essay will focus on the development and possible
-Different Approaches-
Topic Paper for International Strategic Management
Outline
Abstract 3
Introduction 3
Overview of Entry Mode Theories 4 The Uppsala Model 4 The Uppsala Model - Example 4 The Uppsala Model – Limitations 5 Porter’s Diamond Model 6 Porter’s Diamond Model - Example 6 Porter’s Diamond Model - Limitations 8 The Born Global Concept 8 The Born Global Concept – Example 9 The Born Global Concept – Limitations 10
Conclusion - the comparison and relation of Entry Mode Theories 11 Chronological development 11 Level of risk 12 Time consumption 13 Investment cost 14 Typical type of corporation 14
References 16
Abstract
The literature focuses on three entry mode theories, being: The Uppsala Model, Porter’s Diamond and the Born Global Theory. In the following, the three theories will be briefly explained and with the help of a real-life example illustrated. After that, the theories are looked at from different dimensions. For a quick overview, a table considering the dimensions of year of publication, risk, time consumption, investment cost and the typical type of corporation was developed. This will enable the comparison process and the following conclusion.
Introduction
Entering a new market can be both profitable and challenging. Despite the risks involved, companies increasingly opt for establishing a branch in foreign markets. The reasons for this vary from location economies and economies of scale through to economies of scope, but are all built on the common goal of gaining access to a new market. All this was enabled by the ongoing increase of globalization, with lower transportation and communication costs. This paper tries to illustrate the various approaches on how to become an international operating company; and, in the following, will discuss, exemplify and evaluate the different approaches.
The essay will focus on the development and possible
References: Michael Porter, 1990, The Competitive Advantage of Nations. Official Homepage, new Carolina Cluster, http://www.newcarolina.org/about.aspx [accessed 15.09.2012] Scott Carlberg, 2011, The Carolinas Nuclear Cluster; how it all began, North Carolina.