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

Foreign market place Entry Strategy - Essay ExampleIn todays highly war-ridden and complex environment, the firms pursuing a strategy of international market expansion face with a necessity to nock a key strategic decision of the choice of market entry mode. Liang et al. (2009) provide a drawing 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 truly in terms of key variables, including the share of capital ownership, organizational control level, resource requirements, risk word-painting and expected future returns (Liang et al. (2009) explain that foreign market entry strategy depends heavily on the partys strategic orientation and strategic capabilities. In order to get empirical data, the researchers have carried let on a study evaluating a sample of 332 foreign market entries of 62 U.S. companies over a rate of flo w of 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 bring 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 deposit to face a risk of information leak.