Question

Evaluation of different entry strategies (ie: export, licensing, alliances, joint venture, others)

- Identify 3 strategies, justify, compare (Provide references & in text citation)

a detailed explanation is hugely appreciated! thank you!

Answer 1

Below are the modes by which FDI occurs -

Establishing own unit - The firm plans to establish own unit in the foreign country to directly make and sell the products to the consumers.

Mergers and Acquisitions - By merging with or acquiring a firm which has a stronghold in a specifc location or area thus bringing new consumer base.

Strategic Alliance - In this mode of collaboration, the firms form a partnership to achieve common strategic objectives which can include increase of sales revenues in a certain location for a certain product etc. The firms work as independent organizations but dedicate resources to achieve the objectives. Understanding of the objectives and the strategies bulit to achieve them is critical for its success.

Joint venture - In this mode of collaboration, the firms work together to form a new venture or business by contributing resources, financing the venture and creatng an organizational structure etc.