Global Market Entry revised

Global Market Entry revised - MOR 492: Global Strategy MOR...

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Unformatted text preview: MOR 492: Global Strategy MOR 492: Global Strategy Modes of Modes of Global Market Global Market Entry Entry Global Entry Mode Global Entry Mode 2 MOR 492: Global Strategy MOR 492: Global Strategy OVERVIEW: ENTRY STRATEGIES OVERVIEW: ENTRY STRATEGIES ogic of Global Market Entry ros and Cons of Different Market Entry Approaches ◆ Export Entry Direct and indirect exporting ◆ Contractual Entry Licensing/franchising, technical agreements Contract manufacturing, turnkey projects ◆ Strategic Alliances & Joint Ventures ◆ Investment Entry Wholly owned subsidiaries Acquisitions MOR 492: Global Strategy MOR 492: Global Strategy LOGIC OF LOGIC OF GLOBAL MARKET GLOBAL MARKET ENTRY CHOICES ENTRY CHOICES (Assumes economic risk and return) (Assumes economic risk and return) Global Entry Mode Global Entry Mode 4 MOR 492: Global Strategy MOR 492: Global Strategy CHOICE OF CHOICE OF ENTRY STRATEGY ENTRY STRATEGY ● Firm Capability ◆ Firm Size; Multinational Experience ● Industry Factors ● Industry growth; Global industry concentration; Technical intensity; Advertising intensity ● Location-specific Factors ● Country risk; Cultural distance; Market potential; Market Knowledge ● Transaction-specific Factors ● Contractual risk; Venture size; Tacit nature of know-how ● Strategic Factors ● Global strategic motivation; Global synergy ENTRY MODES AND DEGREE OF CONTROL Global Entry Mode Global Entry Mode 5 MOR 492: Global Strategy MOR 492: Global Strategy ENTRY STRATEGY: CHOICE ENTRY STRATEGY: CHOICE EXTERNAL FACTORS Target country environment ◆ Government policies/regulations ◆ Economy ◆ Socio-cultural factors ◆ Institutional voids ◆ Political risk Market factors ◆ Size/growth/attractiveness of markets ◆ Competitive structure ◆ Marketing infrastructure Global Entry Mode Global Entry Mode 6 MOR 492: Global Strategy MOR 492: Global Strategy ENTRY STRATEGY: CHOICE ENTRY STRATEGY: CHOICE INTERNAL FACTORS Technology and product characteristics ◆ Product factors ◆ Pre and post purchase services ◆ Technological intensity ◆ Minimum efficient scale Resource and commitment factors ◆ Resource availability ◆ Willingness to take risks ◆ Corporate goals Global Entry Mode Global Entry Mode 7 Core Core Decision Dimensions Decision Dimensions Assumes Economic Risk is worth taking Transaction-specific issues Firm-specific issues Institutional differences, gaps & voids Political Risk MOR 492: Global Strategy MOR 492: Global Strategy Global Entry Mode Global Entry Mode 8 MOR 492: Global Strategy MOR 492: Global Strategy Political Risk Institutional Voids Firm Transaction Costs Over-Lapping/Nested Decisions Over-Lapping/Nested Decisions Global Entry Mode Global Entry Mode 9 TRANSACTION/VENTURE-TRANSACTION/VENTURE-SPECIFIC FACTORS SPECIFIC FACTORS MOR 492: Global Strategy MOR 492: Global Strategy Global Entry Mode Global Entry Mode 10 Circumstances in which Market Transactions are Costly...
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This note was uploaded on 02/11/2012 for the course MOR 492 at USC.

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Global Market Entry revised - MOR 492: Global Strategy MOR...

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