Question

Tealive's should use which type of market entry mode and global expansion strategy into Japan.

Answer 1

The kind of market entry mode and global expansion strategy TeaLive requires is Collaboration or joint venture strategic mode. It is an effective way to enter into Japan market and run their business effectively. It is important to understand the socio-cultural, economic and technological preferences of a country. Thus, TeaLive cannot analyze properly the requirements and preferences of the Japan market without an efficient market analysis. However, it can be impossible for TeaLive to invest an additional amount for armlet analysis. Thus, the collaboration with local dealers, retailers and suppliers should be the best way to understand local consumers and their cultural preferences.

Collaboration or joint venture is an effective strategy which enables a new businessorganization to tie up with existing competitors and understand details about the local market. Five general objectives of the joint venture strategy are as follows

• Market entry
• Risk sharing
• Technology sharing
• Joint effort to develop product and services

Thus, TeaLive must collaborate with local organizations before enteringinto tea and coffee market of Japan. Tealive should make this collaboration strategy successful by

• Making strategic goals converge and competitive goals diverge
• Collaborating with a local organization by analyzing the size, market efficiency, and required resources
• Providing equal and combined effort and learn from each other to ensure profitability

A collaboration strategy should be efficient for Tealive to gain market advantage in Japan.