Entry Mode
Selection rules
Naive
Pragmatic
Strategy
Factors
Internal
External
Firm size
International Experience
Product/ Service
Sociocultural distance
Country risk/ demand uncertainty
Market Size & growth
Direct/ Indirect trade barriers
Intensity of Competition
Small number of intermediaries
Desire mode characteristics
Risk adverse
Control
Flexibility
Transaction-specific
know-how
Export mode
Indirect
Direct
Cooperative Export
export buying agent
advantage
disadvantage
little credit risk
easiest
exporter little control
consumer behaviour
Broker
Export management company
disadvantage
commission
immediate sales potential
many product ranges
less attention
disadvantage of a particular firm
Trading company
Piggy back
complementary
non-competitive product
Advantage
Rider
low risk
Carrier
get the product quickly
low-cost (no need R&D)
Disadvantage
Carrier
quality control
warrenty
distribution systems
learn experience
Rider
control over the market
choice
size
facilities
inventories
knowledge of promo
reputation with suppliers
customer & bank
Evaluating
performance
market attractiveness
resource control
highly fragmented
traditional, mature
clothing
furniture
recently established high-tech
Intermediate Entry Mode
Contract manufacturing
Licensing
overlicensing
dilute value
Pierre Cardin
advantage
licensee's tech & product
Reason
core competencies
lack of expertise
financial
managerial
marketing
at the end of PLC
stretch
handsome margin
government regulation
constraints on imports
Franchising
Direct
Indirect
Format
product & trade name
Coca-cola
business format 'package'
trademark
copyright
designs
patents
know-how
market research
trade secrets
IKEA, fast food
local resource knowledge
more adaptation
develop a successful master
control
commitment of master
Build-A-Bear in Germany
Joint Venture
reason
Complementary tech/ skills
compensate international experience
lower costs
speed of entry
foreign owernship restriction
compare with strategic alliance
strategic alliance
joint vernture
non-equity cooperation
contractual non-equity
equity joint venture
commitment
coalition
X coalition
Y coalition
complementary product line, distribution
up/downstream
Irn-Bru with Pepsi Bottling Group
Hierarchical mode
Kitty
LEGO clothes
Strategic Alliance
Wholly owned subsidiaries
Acquisition
Greenfield investment
Advantages
Rapid entry
immediate market share
access to
labour
local knowledge & contacts
distribution channels
Disadvantages
high risk
Integration
Advantage
control
profit
able to leverage experience
advantage
incorporation
no change inertia
Starbucks
bookstore
united airlines
Pepsico
Kraft foods
HP & Disney
Microsoft & GE
caradigm
data & interlligence
sony ericsson
mobile+telecommunication