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Unformatted text preview: us on the Complexity and
differentiation of the product.
Complexity and differentiation of the product
With complexity and differentiation of the product, Hollensen (2001) mean that the product
influences the cost of shipping, economies of scale, technology transfer, and already existing
know-how and thereby may influence of market entry mode. In contradiction to theory, the
differentiation and complexity of the product is not singled out as a factor that affects the
choice of market entry mode, due to the high transportation cost the company has as they
deliver their product directly to the end user. Furthermore our findings in case two reveled
that the complexity and differentiation of the product does not affect the company’s choice of
market entry mode, especially since the product differentiation is negligible, and thereby
contradicts the theory stated by Hollensen (2001). 37 DATA ANALYSIS 5.1.4 Theory by Bruhno and Schilt (2001)
Bruhno and Schilt (2001) have also developed a model in which th...
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