Submitted by: Submitted by Amirashiraz
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Category: Business and Industry
Date Submitted: 05/24/2016 03:33 PM
Global market decision 3
Chap 8
Fishermen’s friend
Export modes:
* Factors affecting foreign market entry mode decision:
Internal factors
Firm size + been in market since 1865
International experience + present in more than 120 countries
Product complexity – the product is simple
Product differentiated advantage + more expensive, stronger taste
Desired mode characteristics:
Risk averse –
Control +
Flexibility + not flexible
Transaction specific factors:
Tacit nature of know-how – fishermen is not complex
External factors
Socio –
Country risk +
Market +
Direct & indirect –
Intensity of competition –
Small number of relevant -
* Indirect export, this is when the manufacturing firm does not take direct care of exporting activities. For fishermen’s friends, they contracts/outsource their marketing activities with an independent company, Impex Management (within their country) so that they can focus R&D and manufacturing.
Product life cycle – mature
Factors influencing channel width –
Ikea case pg 435
Franchise model – intermediate modes (Denmark or Singapore )
Firm size +
International experience +
Product complexity +
Product differentiated advantage +
Desired mode characteristics:
Risk averse +
Control +
Flexibility –
Transaction specific factors:
Tacit nature of know-how +
Opportunistic behaviour & transaction cost - -
External factors
Socio –
Country risk +
Market +
Direct & indirect –
Intensity of competition –
Small number of relevant -
Autoliv:
Internal factors
Firm size +
International experience +
Product complexity + complex product
Product differentiated advantage +more competition
Desired mode characteristics:
Risk averse + risk taking company globally present
Control – production in different countries
Flexibility – flexible
Transaction specific factors:
Tacit nature of know-how +
Opportunistic behaviour &...