Modes of Entry
Provide a scenario where a company would enter a foreign market using the following modes of entry. Be sure to provide one scenario for each mode:
• Exporting
• Licensing
• Franchising
• Creating a turnkey project
• Establishing joint ventures
• Setting up a wholly-owned subsidiary
Give justification for your choices using the advantages or disadvantages for each mode discussed in course readings.
Read the closing case from the text at the end of Chapter 13. Prepare a response to the following questions:
• Why did Megahertz adopt a strategy for export-led growth?
• In this case, why might the opportunities for growth be greater in foreign markets?
• Would developing countries be a major opportunity for Megahertz? Why or why not?
• What does the experience of Megahertz tell us about challenges facings small firms that want to export? Use specific examples from the case to support your answer.
• What other solutions might Megahertz have considered for its financing difficulties (other than selling the company)?
Provide a scenario where a company would enter a foreign market using the following modes of entry. Be sure to provide one scenario for each mode:
• Exporting
• Licensing
• Franchising
• Creating a turnkey project
• Establishing joint ventures
• Setting up a wholly-owned subsidiary
Give justification for your choices using the advantages or disadvantages for each mode discussed in course readings.
Read the closing case from the text at the end of Chapter 13. Prepare a response to the following questions:
• Why did Megahertz adopt a strategy for export-led growth?
• In this case, why might the opportunities for growth be greater in foreign markets?
• Would developing countries be a major opportunity for Megahertz? Why or why not?
• What does the experience of Megahertz tell us about challenges facings small firms that want to export? Use specific examples from the case to support your answer.
• What other solutions might Megahertz have considered for its financing difficulties (other than selling the company)?
