Question

Use the entry mode model to explain how Steelcase will do business in Czech republic.

Answer 1

answer-

Every business which has orientation towards growth and want to make their business international or enter into foreign country where they have more demand then they adopt methods like Exporting, Strategic alliances, Foreign direct investment, Franchising etc.

In this case, Steelcase is a United States-based furniture company founded in 1912 in Grand Rapids, Michigan. The company produces office furniture, architectural and technology products for office environments and the education, health care and retail industries. It is the largest office furniture manufacturer in the world .

to Enter into Czech republic and do business in that country, Steelcase take entry by doing export of its furniture to offices, hospitals, schools and colleges in Czech republic. Export is one of the easiest way to enter into foreign market where it sells its furniture in different countries so it can sell it in Czech republic as well.

Second is doing strategic alliance. A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations.

In strategic alliance, Steelcase can make partnership with either small or mid level furniture companies in Czech republic like Ton Inc., KOMANDOR Czech republic ltd. etc to enter into this country and use each others resource and customer base to enter into market.

Foreign direct investment in which Steelcase has huge financial resource so it either can purchase like acquire business in Czech republic or establish its own new facility and operate by its subsidiary in Czech republic.