These factors are shown in figure 21 on page 10

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Unformatted text preview: , based on theory is displayed. 2.1 INTERNAL FACTORS 2.1.1 Theory by Koch (2001) Koch (2001) introduced a holistic model of the market and Market Entry Mode Selection process (MEMS). All factors proposed to influence the market/ market entry mode selection process fall into three broad categories: external, internal, and the mixed, internal/external category. Some of the proposed categories of factors may influence some others, adding to the complexity of the decision process. These factors are shown in figure 2.1 on page 10. Company size/ resources According to Koch (2001) smaller companies usually have fewer market servicing options, as their very limited own resources may simply not allow, or discourage from, some market entry modes. For example, establishing a fully owned subsidiary often involves very substantial investment and correspondingly high risk levels. Similarly, small companies may not have sufficient management potential and special skills to enter foreign market through establishing fully owned foreign-based subsidiaries or inte...
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This document was uploaded on 03/22/2014.

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