1 table 21 internal factors influencing the entry

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Unformatted text preview: nt networks affect the choice of market (Bruhno and Schilt, 2001)? Motive Networks Goals Customer relationships Strategy Entry mode selection Competitors Market Resources Product Management Figure 2.3: Influencing factors in entry mode selection Source: Adapted from Bruhno & Marco Schilt (2001), p.44 14 LITERATURE REVIEW 2.1.6 Additional theory by Root (1994) Root (1994) has also summarized the influence of internal factors on the choice of entry mode as shown in Table 2.1. TABLE 2.1 Internal factors influencing the Entry Mode Decision Licensing Indirect and Agent/ distributor Exporting Internal Factors: Differentiated products X Standard products Service- intensive products Service products X Technology intensive products X Low product adaptation X High product adaptation X Limited resources X X Substantial resources Low commitment X X High commitment Branch/ Subsidiary Exporting Equity Investment/ Production Service Contracts X X X X X X X X X X X X X Source: Adapted from Root, (1994), p.16 2.2 EXTERNAL FACTORS 2.2.1 Theory by Koch (2001) Koch (2001) states that the following factors are the external, as also seen in Figure 2.1 (page 10). Indus...
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