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based on a company of your choice identify what you believe to be an appropriate international...

based on a company of your choice identify what you believe to be an appropriate international market for that company to enter. your answer should include an environmental analysis and explanation of market entry method.

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Market entry methods are the methods that are used in order to attract the international market. there are many market entry methods which includes

  • direct export
  • indirect export
  • joint ventures
  • licencing
  • ownership
  • francising
  • partnering
  • piggybacking
  • buying a company
  • turnkey projects
  • etc...

Joint ventures is the method of market entry method used by sony/ericssons  cell phones. it is a market entry method created by two or more parties which includes risks and shared ownership. it also involves the creation of third independently managed company. the included risk are taken equally by the both companies. mainly companies adopt this method in case of following reasons like whether a company is

  • to assess a new market,
  • able to access skills
  • share the risk factors in case of emergency or major projects.

major companies adopting this methods included oil and gas industries. also mobile companies.it is also considered as a legal agreement between two or more parties.there also includes some issues with the shareholders agreement:

  • large number of directors
  • assessment rights for founders
  • control of company by many directors
  • management decisions

advantages of joint ventures

  • helps to grow faster
  • increases the capacity
  • share the risk and cost with partner
  • helps to penetrate new market
  • economics of scale has improvement

disadvantages of joint ventures

  • objectives are not clear
  • different objectives for different partners
  • imbalance in the level of advertisement and investment
  • different cultures
  • different management styles
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