The model selections are divided into three types

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market entry, where the research can measure the accuracy of obtaining information. The model selections are divided into three types, consisting of Hierarchical model, Intermediate model, and Export model. Each model has it characteristics, benefits and challenges depending on the point of view and company’s objectives (Hollensen, 2004). Making the wrong decision or miscalculating the model could lead to business suffering with high cost (Jeannet and Hennessey, 2004). Figure 8: Model selection Prem Narula ID:4572878Page 15
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Source: (Hollensen, 2004, p. 293) Intermediate model is the most appropriate entry mode for Chobani because the company doesn’t have to carry all the risk and in this model the company requires splitting the ownership and sharing control with other companies. This model can be divided into four entry modes such as licensing, franchising, contract manufacturing and joint venture. In addition, each entry mode shares risk and control in different parts as shown in appendix 2 (Hollensen, 2004). Degree of control, resources commitment, level of risk, speed, opportunity available and expect return are the six factors that Chobani should consider to analyze for choosing the best entry mode. CHINA Criteria Licensing Joint venture Franchising Weight (1-10) Value (1-5) Weighted Score Value (1-5) Weighted score Value (1-5) Weighted score Degree of control 10 3 30 4 40 2 20 Resources commitment 6 3 18 5 30 3 18 Level of Risk 9 4 36 2 18 4 36 Speed 10 3 30 2 20 4 40 Opportunity Available 7 3 21 3 21 4 28 Expect Return 8 3 24 3 24 3 24 Weighted total 159 153 166 Table 6: Entry mode grid Source: Adapted from (Ellis and Williams, 1995) Prem Narula ID:4572878Page 16
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As the entry mode grid, speed, risk, and degree of control will be focused as the first priority because the life cycle of yogurt is short and must be monitored closely to maintain the low temperature. Thus, Chobani’s best entry mode to China would be franchising, where franchising give the company full control, give an opportunity to build a global presence in low cost basis (Lee, Kiefer and Steven 2005). Chobani would require low capital investment, if chobani uses franchising, which also is better than other methods for distribution of products. Moreover, political risk, local legislation and cultural differences could be manage be franchisee and with the limited capital for a newly born company as Chobani, franchisee could get commitment from local market and being familiar by the market is a very short period to solve the problem of consumers acceptance of the product. Franchisee would have to buy yogurt from Chobani, and giving some amount to Chobani as the owner of the product but the franchisee would gain customer satisfaction from the product and would get compensation from Chobani. Five years plans for Chobani in China Five year plan for Chobani 2015-2019, Chobani is recommended to use franchising as their entry mode in to China. The top well-known provinces for business and fashion should be focused to invest in first as there is a highest possibility for surviving in the industry. The top five provinces are Beijing, Shenzhen, Shanghai, Tianjin, and Chongqing. The first year, the company should launch the
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