MN1178 B&M in GC 9.Entry strategies, alliances and evolution

companies wanting low cost, productive and reliable local workforces

• natural resource-seeking

• market-seeking

• efficiency-seeking

• innovation-seeking

building up sales volume and riding down the experience curve ahead of rivals, gaining a cost advantage

• First-movers advantages

• Late movers advantages

• First-movers disadvantages

the sale of products made by companies in their home country to customers in other countries

• Exporting

• Turnkey projects

• Licensing

• Franchising

• Joint ventures

foreign contractor handles every detail of the project for a local client, including training personnel

• Exporting

• Turnkey projects

• Licensing

• Franchising

• Joint ventures

The company can capitalise on market opportunities without developing additional marketing, administrative and operational capabilities itself

• Exporting

• Turnkey projects

• Licensing

• Franchising

• Joint ventures

collaborations between independent companies using equity modes, non-equity contractual agreements or both

• Strategic alliances

• Franchising

• Joint ventures

• Fully owned subsidiaries

It helps the company achieve its strategic goals and has capabilities the company lacks.

• Management capability

• Alliance structure

• Partner selection

It requires the building of strong interpersonal relationships – called relational or social capital

• Alliance structure

• Management capability

• Partner selection