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Market Entry Strategies (Which entry mode to use (Franchising (Franchisor…

- - - - Pre-empt rivals by establishing strong brand name
      - Build up sales volume and gain more experience, gain a cost advantage over later entrants
      - create switching cost that tie customers into products/services, making it difficult for later entrants to win business
  - - - Cost of business failure due to ignorance of foreign environment, making major mistakes
      - Cost of promoting and establishing product, cost of education customers
  - - - Major strategic commitment that changes competitive scale
      - Decision has long term impact and is difficult to reverse
    - - Allow firm to learn about foreign business market while limiting firm's exposure to market