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Unformatted text preview: three different ways of managing their international activities. Generally, companies start
with organizing an export department, then an international division is created and finally
they become a global organization (Kotler and Armstrong, 2001).
Eriksson, Johanson, Majkgård and Sharma (1997) emphasize the difficulties with the
process of internationalization. They also consider international entry as an incremental
process that begins relatively late in a firm’s life cycle which might warn of potentially
negative consequences of early internationalization on firm survival, this is further
supported in findings made by Johanson and Vahlne (1977, 1990).
According to Osland, Taylor and Zou (2001) globalization of business has grown rapidly
in recent decades, which has in turn forced companies to develop strategies for entering
and expand their businesses into new markets. One of the most crucial strategic decisions
an international company has to make is selecting a mode for entering a new foreign
market. Entry strategies for in...
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This document was uploaded on 03/22/2014.
- Summer '14
- The Land