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Unformatted text preview: xports with sales to
countries that could be considered as either psychologically or geographically proximate. The
in-depth interviews that Bell conducted revealed several important factors that strongly
influenced firms’ initial and subsequent market selection decisions, namely: client follower
ship and sector targeting (Bell, 1995). 2.2.4 Theory by Bruhno and Schilt (2001)
Bruhno and Schilt (2001) have developed a model where they present internal and external
factors that influence a company’s choice of marketing channel. The authors also state that
these factors should not be studied isolated but instead viewed as related to each other. See
figure 2.3 on page 14. These are the external factors:
Are there any trade barriers or laws and regulations that limit the company’s choices with
internationalization? How does this affect the choice of entry mode (Bruhno and Schilt,
How many competitors does the company compete with in the respective market? How large
market share does the company have? How does the competition influence the company’s
choice of marketing channel on the respective market (Bruhno and Schilt, 2001)? 18 LITERATURE REVIEW 2.2.5 Additional theory by Root (1994)
Root (1994) has summarized the influence of external factors on the choice of entry mode as
shown in Table 2.1.
TABLE 2.1 External factors Influencing the Entry Mode Decision External Factors (Foreign Country):
Low sales potential
High sales potenti...
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