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Entry Modes - Coggle Diagram
Entry Modes
Non-equity Modes
Export Mode
This entry mode is done through the process of selling products or services to foreing markets without having any physical presence.
Advantages: Lower initial investment requirements, access to a wider customer base, the ability to taste foreign markets without the need to have an important commitment.
Disadvantages: Limited control over marketing and sales decisions, may face trade barriers, challenges related to distribution and logistics.
Contracting Modes
This entry mode involves the use of agreements with foreign partners in order to enter a foreign market; this is a flexible entry mode as firms can have some leverage in the resources and expertise of the local partners without the need of having full ownership or control.
Advantages: Shared risks and costs, access to local market knowledge and quick presence in the foreign market.
Disadvantages: Issues with quality control, conflicts with partners, potential loss of operational flexibility
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