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ESSAY: International and Entrepreneurial Strategies

Select ONE (1) of the questions listed here to discuss this week. Please use your own words and do not copy and quote from the text or lesson.

1. Describe (in your own words) the four strategies that firms have available when they enter international markets. What are the relative advantages and disadvantages of each? Be sure to address the four strategies and not the entry modes. Use your own words. No quotes please.

2. Once a company selects an international strategy, there are four modes of entry an organization must consider. What are these entry modes and how are they different? Use your own words. No quotes please.

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ANSWER

Question 1

Different strategies can be used in establishing a new market in a foreign country including franchising your brand, buying a company, piggyback and partnering up. Tulung (2017) argues that no strategy can be said to be better compared to the other as different countries have …

Franchising entails creating a prosperous brand and allowing different business individuals to open their branches using the already set brand upon which they will be paying some fee (Tulung, 2017). The advantage of this strategy is that it is an easier way to venture into new markets since it only involves taking the already laid model, finding the preferable business owners and then starting the business. Its disadvantage…

Buying a company is another strategy which involves buying shares of the market and then putting in place your brand image and the prevailing customer plan (Tulung, 2017). The advantage of this strategy is that governments will regard you as their own thus reducing the stringent requirements for starting the business. However, the strategy can be expensive if the business…

Piggyback involves approaching the domestic organizations and requesting them to sell your products to other international agencies. The strategy is cost efficient but carries the risk of significant losses due to the owners …

The last strategy is partnering up which involves finding a partner in overseas to either promote your goods or one who has already capitalized. Partnering helps to save on operating costs, but can also attract …

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