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Unformatted text preview: les or market share
maximization. Our findings in case one show that the company does not have any specific
market share targets although their strategy to increase sales in international markets, which
contradicts the theory since the company do not alter their market entry mode due to their
market share targets. On the other hand our findings in case two revealed that Purac does not
have any specific way of entering a new international market for maximization of growth
reasons even though their goal is to grow internationally thus they choose an entry mode due
to suitability for each project, which in turn verifies the theory stated by Koch (2001).
Koch (2001) states that the profit targets of the company affect the choice of market entry
mode. Depending on which way a company chooses to enter a new international market, the
profits will vary. The author argues that an entry mode that reaches profit quickly often shows
difficulties to bring long-term profits, while entry modes with a long-term profit as a goal
does not bring profits as quickly but is able to sustain a long-term profitability. Our findin...
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land