Question

Explore and choose foreign countries and markets. Recommend the introduction of product or service overseas. Explain what entry strategy you would choose and explain your rationale based on the characteristics (i.e. political, economic, legal, and cultural) of the country and risks (e.g., intellectual property).

Answer 1

To Explore and choose the foreign countries and markets, here, let me consider a product like Hot or Cold Coffee selling, here, we can implement entry strategy Joint Venture, with such Joint venture strategy, the parent company will create partnership with another company who has strong existence in that foreign country, by creating Joint venture, finally another independent managed company will be formed, Profits and Risks would be shared among them equally, it has several advantages like the newly independent firm becomes more flexible and capable to serve needs of the customers in that country, they also get better access to the needed resources, gained with market opportunities as they have got skills, expertise and new insights, here, Both firms will share risks and costs, various partnership can be transferred and sold out, it builds better networking and marketing long lasting relationship that has sustainable cause, with such Joint ventures, various marketing and advertising related costs also can be saved, here, Parent company can create licensing with the company who has existence in foreign country, and start their business in foreign country, for example: American Food company Starbucks has created joint venture and licensing with Tata and they are serving customers in India successfully,