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Unformatted text preview: stablished planning periods, will be preferred (Koch, 2001).
Calculation methods applied
The broad alternatives of risk or benefit based calculation method and cost or control based
calculation method are available also with regard to the market entry selection (Koch, 2001).
According to Koch (2001) various market entry modes are likely to produce different levels
of profit; equally importantly, the dynamics of profit generation of various modes will be very
dissimilar. The former will show some profits almost immediately and then may soon level
off, the latter may mean no profits for three or four years (construction cycle, time needed to
establish all necessary market contacts, acquire/ build all necessary assets, train the sales force
as required, develop customer base, etc.). A long decision horizon may prefer the latter; a
short one will prefer the former.
Experience in using individual MEMs
The market entry mode decision is affected by how many times, how recently and in what
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land