What is the best way to enter a new market? Should a company first establish an export base or license its products to gain experience in a newly targeted country or region? Or does the potential associated with first-mover status justify a bolder move such as entering an alliance, making an acquisition, or even starting a new subsidiary? Many companies move from exporting to licensing to a higher investment strategy, in effect treating these choices as a learning curve. Each has distinct advantages and disadvantages.
In order to complete this DISCUSSION BOARD assignment, you will need to complete the following:
Using the Internet, find ONE example of ONE of the following strategies for entering foreign markets that you believe is an excellent example of the SUCCESSFUL implementation of the strategy and ONE example of ONE of the following strategies for entering foreign markets that you believe is an excellent example of the UNSUCCESSFUL implementation of the strategy.
- Joint Venture
- Contract Manufacturing
- In your initial discussion post (150 – 175 words) share your SUCCESSFUL and UNSUCCESSFUL examples! In addition to listing your example of EACH, provide the following information
- Why do you believe that the company/organization chose the entry strategies they did?
- What went right with the SUCCESSFUL one and what went wrong with the UNSUCCESSFUL one?
- What can other companies looking to enter a global market learn from these two examples?
- Be sure to post responses to at least TWO of your classmates before the due date.
- Also, if you have links to articles or resources that you would like to share, please include them in your initial post.
Goal: Identify the various strategies of international business and the strategic ways to enter a foreign market.