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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.
- Summer '14
- The Land