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The companies in case one and case two selects an

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Unformatted text preview: importance when choosing a market entry mode, thus contradicting the theory argued by Bruhno and Schilt (2001). Furthermore, our findings in case two revealed that Purac, even though they consider themselves as market leaders, always assess the competition before entering a new international market, as a way to measure if a successful market entry is possible and through which way the entry should be performed. If the competition is regarded as high, the company does not use entry modes that demand heavy resource commitment, thus verifying the theory stated by Bruhno and Schilt (2001). 43 DATA ANALYSIS 5.3.4 Additional theory by Root (1994) Root (1994) has also summarized the influence of external factors on the choice of entry mode as shown in Table 2.1 in chapter 2. As stated in our conceptual framework we will use this theory to show the connection between the external factors and the actual choice of market entry mode. The companies in case one and case two, selects an international market through stating a set of terms that has to be fulfilled in order for them to take interest in that particular market. This has been taken under consideration when placing the companies in Root’s (1994) table to be able to perform a relevant analysis of the theory. TABLE 5.3 External factors influencing the Entry Mode Decision Case one Meva External Factors (Foreign Country): Low sales potential High sales potential Case two Purac Preferred entry mode X X Branch/ subsidiary exp...
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