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Flashcards in Foreign Market Entry Strategies Deck (12)
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1
Q

Country screening

A

1) Develop selection criteria
2) Develop likely segments
3) Rate market attractiveness
4) Assess compatibility

2
Q

Kumar and Subramaniam (1997)

A

Firm and environmental factors influence desired mode characteristics

3
Q

Desired Mode Characteristics - Kumar and Subramaniam (1997)

A

Control, Resource Commitment, Dissemination Risk and Flexibility to Withdraw

4
Q

Entry Modes - Kumar and Subramaniam (1997)

A

Investment - wholly-owned subsid, acquisition, assembly operations
Contract - joint venture, strategic alliance, franchising, licensing
Direct Exporting - export department, agents, distributors
Indirect Exporting - trading companies, domestic purchasing, export management companies

5
Q

Firm factors - Kumar and Subramaniam (1997)

A

Assessed by Porter’s 5, RBV, SWOT, transaction cost perspective
Cost leadership, product differentiation

6
Q

Transaction Cost Perspective

A

Costs associated with uncertainties and an organisation’s capability to deal with them

7
Q

Transaction Cost Perspective - 4 concerns (Schellenberg et al, 2018)

A

Asset specificity - is asset protected? easy to copy?
Environment uncertainty - dynamic and similarity of market. Depends on nature of industry and product
Behavioural uncertainty - partner trust, will contracts be respected
Transaction frequency - number of dealings

8
Q

Environment factors - Kumar and Subramaniam (1997)

A

Location-specific advantages

Natural (resources) or artificial (Switzerland VET system)

9
Q

First Mover Advantages

A

Lasting impression on customers - brand recognition and loyalty
Time to refine processes and perfect products/services
Control of resources - e.g. strategic location, exclusive contract with key suppliers

10
Q

First Mover Disadvantages

A

Bear economic burden of developing new markets that followers can then exploit
Followers learn from your mistake, reducing own risk/cost
Followers can examine your processes and modify for efficiency

11
Q

Institutional Perspective & Social Legitimacy (Peng, 2006)

A

RBV and Porter’s 5 fail to consider how a changing instit environment can impact marketing practice
Important in achieving social legitimacy - access to resources (Deephouse, 1999)
Homophobic Chick fil A

12
Q

Institution Definition (North, 1991)

A

Humanly devised constraints that structure political, economic and social interaction