Factors influencing foreign market entry choice

service firms by Aileen Kennedy

Publisher: University College Dublin (Centre for Quality & Services Management) in Dublin

Written in English
Published: Pages: 26 Downloads: 229
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Edition Notes

Statementby Aileen Kennedy.
SeriesWorking paper -- no.96-3
ContributionsUniversity College Dublin. Centre for Quality & Services Management.
The Physical Object
Pagination26 :
Number of Pages26
ID Numbers
Open LibraryOL22421012M

The choice of a foreign market entry mode is "one of the most critical decisions in international marketing" (Terpstra, , p. ), since it determines how firms market their knowledge can be defined as the knowledge relating to the market and the market-influencing factors . Environmental Influences on the Foreign Entry Mode Decision The external environmental factors that were studied in the first section of this book, including the cultural, political, legal and economic environments have been identified as contingency variables that affect foreign market entry choice. 2 Master thesis in Business Administration Title: IKEA marketing entry strategy in China Author: Jiang Lingxiu Supervisors: Tomas Muller n, Liudmila Chikhun Date: April, Key words: internationalization, market selection, entry mode, timing of entry ABSTRACT Nowadays, with the big background of economic globalization, economic isolation became impossible, therefore. Factors affecting viability of entry. Many companies can successfully operate in a niche market without ever expanding into new markets. On the other hand, some businesses can only achieve increased sales, brand awareness and business stability if they enter a new market. Developing a market-entry strategy involves thorough analysis of potential competitors and possible customers.

  Factors affecting foreign direct investment. 1. Wage rates. If the UK leaves the Single Market, there will be two factors which make the UK less attractive as a place for FDI. Outside Single Market – the possibility of tariffs or greater barriers to trade with rest of Europe. Even if tariffs to EU are low (World trade rules) there is a. entities in foreign countries or on international markets have to deal with many different influencing factors during the integration process of the subsidiary to the origin company. Macro-economic factors as well as intercultural dimensions have to be considered in such a complex venture. This research project focuses on the influence of macro-. This paper concentrates on secondary sources of research regarding the internationalisation of businesses. According to the previous literature, scholars have already found out some of determinants influencing the efficiency of foreign entry, such as: economic factors, political risk, legal factors, cultural factor, international experience, etc. One of the following is not among the main internal factors affecting the choice for market entry mode: One of the following is not a main external factor affecting the choice for market entry mode: The foreign entry mode pertaining to the lowest levels of control and risk is the_____ mode. Regionally, _____ has seen the largest decrease in.

Market research specialists and legal consultants can help foreign businesses to better understand how China’s laws and regulations should be interpreted. Market Entry Mode. Choosing the right vehicle for entry is one of the most crucial decisions a business can make when entering China for the first time. The firm’s operations in the market depend on its choice of foreign entry mode. An entry mode can be defined as an institutional arrangement chosen by the parent company in the foreign market. Foreign entry mode strategy is the most critical decision as it influences all the future decisions (Kumar and Subramaniam, ).   One of the main factors to determine an international pricing strategy is the size of the national market, which affects prices in different ways. A company will often attempt to use the potential volume of sales to estimate the price at which they will need to market their product to break even. ADVERTISEMENTS: Market Entry Strategy: 5 Factors You Must Consider While Your Company is Entering to a New Market! It has become imperative for most companies to market their products and services outside their domestic markets. But all markets are not equally attractive nor are the companies competent enough to pursue all markets. A company [ ].

Factors influencing foreign market entry choice by Aileen Kennedy Download PDF EPUB FB2

This paper concentrates on secondary sources of research regarding the internationalisation of businesses. According to the previous literature, scholars have already found out some of determinants. The most crucial decision that an MNC has to make when entering a foreign market is the choice of the most optimal mode of entry as it will have a bearing on the company’s success.

A firm must assess a number of internal and external factors while. In the associated paper “Selecting overseas markets and entry modes: two decision processes or one?”, it was proposed that market selection and market entry mode selection be looked upon as two aspects of one decision process.

Examines a wide spectrum of factor categories to be included in the proposed MEMS model and argues that an inclusive spectrum of analysis would make Cited by: Resource/commitment factors: The more abundant a company’s resources in management, capital, technology, production skills, and marketing skills the more numerous its entry mode options.

Conversely a company with limited resources is constrained to use entry modes that call for. According to Hollensen (), there are following external factors influencing company’s choice of foreign entry mode:  Socio-cultural distance  Country risk and demand uncertainty  Market size. The majority of past studies on the foreign market mode of entry have focused on manufacturing industries.

Although some studies have explored the entry mode decisions of the banking industry, most of them have adopted the case study method, and systematic studies have been relatively few.

Foreign market entry mode choice plays an important role in global business and is widely researched without reaching a consensus. The challenge continues as to rationalisation of foreign market entry mode choice.

Various models have been used to explain the factors that affect foreign market entry mode choice. Firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode.

The options available to a firm include exporting, licensing, joint venture and sole venture. Several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature. These factors can be classified into three categories. Start studying Factors Affecting Market Entry Mode.

Learn vocabulary, terms, and more with flashcards, games, and other study tools. that promote preference for one product over another may allow a firm to absorb the higher costs of being in a foreign market How PESTL affects choice.

Abstract This paper investigates the factors that influence the choice of market entry modes in the African mobile telephony industry - currently, a popular international investment destination.

Using the survey methodology, the study focuses on six key enterprises, which account for over 60% of the cell phones in Africa. There will be a number of factors that will influence your choice of strategy, including, but not limited to, tariff rates, the degree of adaptation of your product required, marketing and transportation costs.

While these factors may well increase your costs it is expected the increase in sales will offset these costs. difficult decision with regards to the choice of an entry mode.

The options available to a firm include exporting, licensing, joint venture and sole venture. Several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature.

These factors can be classified into three. A number of cultural differences can cause marketers problems in attempting to market their products overseas. These include: (a) language, (b) color, (c) customs and taboos, (d) values, (e) aesthetics, (f) time, (g) business norms, (h) religion, and (i) social structures.

One common factor in exporting is the need to translate something about a product or service into the language of the target country. This requirement may be driven by local regulations or by the company’s wish to market the product or service in a locally friendly fashion.

There are a lot of factors internal to companies which play a vital role in deciding the entry strategy choice. Some of these factors are psychic or cultural distance, centralization of decision-making, organizational culture, firm size, international experience and characteristics of the decision maker.

Chapter 5: Multiple choice questions. Instructions. internal and external factors that influence a firm's decision to initiate, develop, a firm's initial choice of international location and its mode of entry into foreign markets. Ravelomanana, F., Yan, L., Mahazomanana, C. and Miarisoa, L.

() The External and Internal Factors That Influence the Choice of Foreign Entry Modes at Wuhan Iron and Steel Corporation. Open Journal of Business and Management, 3, doi: /ojbm Internal Factors Influencing Choice of Foreign Entry Modes.

According to Brassington & Pettitt () [3], when the company decided which markets to enter, it must then decide how to enter them. A number of factors influence the choice of foreign market entry mode: ü Speed. ü Costs. ü Payback. ü Long-term objectives. This paper examines factors associated with international franchising firms’ entry modes when they enter the Chinese market.

To this end, a survey was conducted to investigate the linkage between entry modes and characteristics of franchising firms. The logit model and regression analysis were used to test the hypotheses. Findings reveal four factors that significantly influence.

One of the most critical decisions faced by multinational enterprises (MNEs) intending to undertake foreign direct investment (FDI) is the choice of foreign market entry mode. A large number of studies analyze the determinants of entry mode choice within the transaction cost framework proposed by Anderson and Gatignon ().

Findings – Three groups of factors were identified that influence entry mode choice in the fashion retail market: firm‐specific factors of asset specificity, brand equity, financial capacity, and international experience; country‐specific factors of country risk, cultural distance, and government restrictions; and market‐specific factors of market potential and market competition.

Nine. Assessment of Factors Influence Entry Mode Choice of Companies (Foreign Companies in Ethiopia) In today’s globalized world companies enter international market in different ways.

They face difficult decision with regards to the choice of entry mode since their choice of entry mode is influenced by different factors. Abstract The effect of some external and internal environmental and internal faectors on service firms' choice pf foreign market entry modes is investigated.

Hypotheses are developed their international oprations. These hyphothese are emperically tested using logistic regression with data collected from United State service firms. According to Aman (), the external factors consists of the international nature and attractiveness of the product category, turnarounds of periods between local and international market, the general potential of the chosen international market, government regulations and trade barriers and assistance presented by governments and other external stake holders in both the domestic and international markets.

foreign entry, such as: economic factors, political risk, legal factors, cultural factor, international experience, etc. A model can be outlined from the theoretical viewpoints about the advantages and disadvantage of each foreign market entry strategy discussed. One of the fundamental steps that need to be taken prior to beginning.

• Factors that affect the company’s choice to enter a foreign market but are independent of management’s decisions are called external factors. • External factors fall under two categories: – target country factors and – domestic country factors.

• Target country factors that should be considered when choosing a mode of entry include. Entry modes Factors influencing the entry mode decision Entry modes and culture Culture`s impact on market entry The learning perspective.

Negotiating styles. Market entry in China – the case of German firms General facts Cultural differences Problems when negotiating with the Chinese Obstacles for. The choice of entry mode into the Chinese market for Icebreaker has a major impact on the success of a firm's international operations.

Not only the company will explore a huge potential in China, but also require a big input from Icebreaker, such as finance, human capital, and all other resources. This paper presents a set of empirical findings about the factors influencing the entry mode choices of an international hotel company.

A case study approach was chosen for this study to investigate these issues and the data was collected utilising interviews, observations and secondary resources regarding the hotel organisation. influence individual factors might exert on entry mode decision making. For example, existing theories suggest that international experience is positively related to entry mode choice, i.e., the more international experience a company has, the higher its propensity to adopt a high equity entry mode (Davidson.

CLASS ACTIVITY #2 Glossary Quiz Match the keywords from today's presentation to their definitions. Differences Amongst Sectors CLASS ACTIVITY #1 Learning Objectives Case - South Africa Gaps in the Literature Factors Influencing Foreign Market Entry into a Developing Economy 1.

Be.The three factors that have a major impact in the marketing environment are given below − Global factors. The global factors that are outside of the control of individual organizations, but that can affect the way that businesses operate can be considered as the global factors affecting the international marketing environment.Market Size • Market size is a key factor when selecting a foreign market to enter.

• Countries with a large market size, in terms of population, per capital income and potential demand for your product or service, can justify those modes of entry with long-term commitment, requiring a higher level of investment, such as wholly-owned subsidiaries or equity participation.