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commitment are they willing to make? And second, what level of control over the
operation do they desire? The factor influencing these two questions is the perceived risk
of entering a new country and a new market, thus it has to be taken into consideration and
the alternatives have to be well evaluated because this will eventually lead to the entry
mode choice (ibid).
Bradley (2002) further states that once a strategy is selected companies have to select the
right type of market entry mode. The foreign market entry modes can be divided into
1. Export entry modes
2. Contractual entry modes
3. Investment entry modes
Export entry modes include direct and indirect exporting i.e. selling to foreign visitors on
the domestic market or to foreign agents, distributors or a subsidiary. The difference
between export entry modes and the other entry modes, contractual and investment entry
modes, is that within export entry modes the final product is produced outside the target
market. Contractual entry modes include licensing, franchising, contract manufacturin...
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land