IB Chapter #12 - Chapter 12 Entering Foreign Markets Basic...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 12: Entering Foreign Markets Basic Entry Decisions 1. Which markets to enter? 2. When to enter those markets? Timing of Entry 3. Size of scale of entry? Which Markets to Enter? Base your decision on an assessment of a nation’s long run profit potential.- Potential market depends on the nation’s benefits, costs, and risk. Nation’s function of factor is key to entering a market- Size of the market, present wealth (purchasing power), and future present wealth Risks associated with business in foreign nations are lower in economically advanced and politically stable democratic nations.- Although China and India are relatively poor, they are growing rapidly attracting investors. Value creating in a foreign market.- Introducing a non-widely available product that satisfies an unmet need. When to enter those markets? Timing of Entry – when a business enters a foreign market- Considered early when an IB enters before other foreign firms- Considered late when and IB enters after already established firms First-Mover Advantages – advantages associated with early entrance to market 1. Ability to preempt rivals and capture demand by est. a strong brand name 2. Ability to build sales volume and ride down the experience curve 3. Ability to create switching costs that tie customers down First-Mover Disadvantages – disadvantages affecting early entrants to foreign market...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

IB Chapter #12 - Chapter 12 Entering Foreign Markets Basic...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online