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chapter 9: Entry Strategies, Aliances, Evolution, Entry to Foreign Market

- - - - advantages: strong brand name, gaining cost advantages, switching costs
      - disadvantages; pioneering costs, costs of promoting
    - - advantages from first movers: educating customers(done already), learning about the market, letting the market and technological uncertainties be sorted out, leapfrog the early mover
      - disadvantages: cannot benefit from the first movers advantages.
- - - - advantages: helps firms achieve Experience Curve and Location Economies, avoid cost of establishing manufacturing overseas
        
        disadvantages: high transports Costs and Tariffs, agent cannot be controlled closely.
    - - advantages: reduce the risk of loosing control, gain 100% of the profits
        
        disadvantages: full risk and cost of setting overseas, difficult to transfer organizational culture and ways of operating to acquired companies.
    - - advantages: earning economic returns, less risky
        
        disadvantages: create local competitor, no long-term interest
    - - advantages: avoids development costs & risks, avoids barriers to investment
        
        disadvantages: lack of control over technology & intellectual property, does not have tight control over manufacturing, marketing & strategy.
    - - advantages: avoids costs and risks opening up a foreign market, quickly build a global presence
        
        disadvantages: geographical and administrative distances cause poor quality at one branch can hurt the brand globally
    - - advantages:benefits from local partner's knowledge, costs and risks of opening a foreign markets are shared.
        
        disadvantages:giving control of its technology to its partner, shared ownership can lead to conflicts between partners
- - - - RESOURCES ENDOWNMENTS
      - AGGLOMERATION
      - MARKETS
      - INSTITUTIONS