Foreign Market Entry Strategy Essay Example | Topics and Well Written Essays - 2000 words

Foreign Market Entry Strategy - Essay ExampleIn todays highly agonistical and multiform environment, the firms pursuing a strategy of international commercialize expansion face with a necessity to befuddle a key strategic decision of the survival of market entry mode. Liang et al. (2009) provide a brief overview of the key types of foreign market entry strategies including the following export, licensing and franchising, acquisitions, greenfield investments, or joint ventures. These market entry strategies very in terms of key variables, including the share of capital ownership, organizational control level, resource requirements, risk exposure and expected future returns (Liang et al. (2009) explain that foreign market entry strategy depends heavily on the companys strategic orientation and strategic capabilities. In order to get empirical data, the researchers have carried discover a study evaluating a sample of 332 foreign market entries of 62 U.S. companies over a period o f 6 years (Liang et al., 2009). The results of the study have shown that the firms that competed primarily in terms of innovation (prospectors) preferred to select equity-based foreign market entry mode and compared to the firms that focused on brand positioning as their competitive advantage (defenders). Prospectors also made a choice in favor of full-ownership entry modes such as full acquisition and greenfield investment. This empirical study indicates that the firms which make innovation and know-how their strategic capability are ready to face a risk of information leak.