Question

Firms enter foreign markets for many reasons. Successful entry depends on matching the firm's strategy and...

Firms enter foreign markets for many reasons. Successful entry depends on matching the firm's strategy and competencies to the right kind of market conditions. Choosing which foreign markets to enter will have long-term implications for the success of any business.

Firms have three basic decisions to make: which markets to enter, when to enter those markets, and on what scale they should enter the market. There is no single, correct answer for all firms. Each firm must decide the best approach based on its strategic approaches and the realities of the market.

Read the overview below and complete the activities that follow.

A number of factors must be considered when a firm chooses to enter a foreign market. These elements are interrelated, but separate analyses and decisions must be made. Once these elements become clear, an integrated approach will emerge. Answer the following questions, and then confirm that you've developed a good approach.

Your firm is at a major turning point. You've just sold off a successful division, and you have a substantial amount of cash you can invest back into the firm. You've also decided additional growth for your personal care products will come from outside the country, not domestically. You've had some limited experience doing business internationally, and you're building the competencies you'll need. Your product is innovative though there are competitive products already in the market. It will appeal to a large market, and you and your senior management are willing to take risks to capture a significant market advantage.

1. While the present wealth of customers in a national market is an important factor, the firm must also consider living standards and _______________________.

Select a response.economic growth, total population, current exchange and interest rates

2. The benefit–cost–risk trade-off is likely to be least favorable in developing nations that operate with a mixed or command economy or where _____________________________.

Select a response.private sector debt has not kept pace with expansion, inflation is not a significant factor, speculative financial bubbles have led to excess borrowing

3. One ___________________________ is the ability to preempt rivals and capture demand by establishing a strong brand name.

Select a response.pioneering benefit, entry-timing asset, first-mover advantage

4. Strategic commitments, like ___________________, can have an important influence on the nature of competition.

Select a response.having a number of significant contingency plans, rapid large-scale market entry, scenario planning

5. Small-scale entry gives the firm time to collect information, but it may make it more difficult for the firm to _______________.

Select a response.change its strategic direction in enough time if the entry does not go well, build market share or capture first-mover advantages, capitalize on pioneering costs

Homework Answers

Answer #1

1).  While the present wealth of customers in a national market is an important factor, the firm must also consider living standards and economic growth.

2).  The benefit–cost–risk trade-off is likely to be least favorable in developing nations that operate with a mixed or command economy or where speculative financial bubbles have led to excess borrowing.

3). One first-mover advantage is the ability to preempt rivals and capture demand by establishing a strong brand name.

4).  Strategic commitments, like rapid large-scale market entry can have an important influence on the nature of competition.

5).  Small-scale entry gives the firm time to collect information, but it may make it more difficult for the firm to build market share or capture first-mover advantages.

Thanks!..

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A firm considering foreign expansion must first decide which markets to enter, when to enter them,...
A firm considering foreign expansion must first decide which markets to enter, when to enter them, and on what scale. Then the firm must decide on the entry mode. The firm's strategy, product, and competition all play parts in making that decision. When a firm's competitive advantage is based on technological competence, a wholly owned subsidiary will often be the preferred entry mode because it reduces the risk of losing control over that competence. A wholly owned subsidiary is also...
1. Firms can be price searchers in each of the following markets, except for ______________. A....
1. Firms can be price searchers in each of the following markets, except for ______________. A. perfect competition B. monopoly C. oligopoly D. monopolistic competition 2.Which of the following statements is false? A. Sunk costs are an important factor in determining entry into a market because these costs may be quite high. B. Sunk costs are an important factor in determining entry into a market because sunk costs cannot be recouped. C. Sunk costs are not relevant to the firm’s...
3. Fewer than 1% of all US firms trade outside of the country, and about 60%...
3. Fewer than 1% of all US firms trade outside of the country, and about 60% of those that do so, only trade with one other country. What are some potential reasons for this (all of the following are true, except one): a. Lack of knowledge, data, and experience. b. Most companies in the US are small and medium sized. c. The size of the US consumer market is large, thus companies may be happy to operated domestically only. d....
Questions 1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why...
Questions 1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach? Yao Ming, Jackie Chan, and Walmart: China Embraces Big Stars and Big-Box Retailing (as cited in Daft, R. and Marcic, D. management: The new workplace, 8e) When you’re an American retailer with thousands of stores spread liberally throughout the best shopping areas of the United States, at some point the question arises: “What next?” Top brass at Walmart were...
can you give me short summary abstract and conclusion on chapters 1 and chapters 2 in...
can you give me short summary abstract and conclusion on chapters 1 and chapters 2 in Strategic Market Management, 9th Edition, by David A. Aaker As you said yu want more info, below is the info, can you please answer my question now. Management Tasks:Strategic Analysis ,Innovation,Multiple Business—Strategies and Issues,Creating SCAs,Developing Growth Platforms Business Strategy:The Product-Market Investment Strategy –    where to compet,The Customer Value Proposition,Assets and Competencies,Functional Strategies and Programs The Product-Market Investment Strategy-Invest to grow (or enter a product...
21. The “prisoner’s dilemma” facing a cartel is that A) what is good for the cartel...
21. The “prisoner’s dilemma” facing a cartel is that A) what is good for the cartel is bad for society as a whole B) the production level that is best for a self-interested firm may not be what is best for the cartel as a whole C) what is good for the cartel as a whole is to maximize production; the dilemma is that individual cartel members may not want to share technology secrets with other firms D) the profit-maximizing...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT