Bus 420

Stewart, Dwane

4/19/2011

BUS 521

Week 3 D2

·   We typically focus on firms from well-developed economies entering markets of less developed economies. Do firms from less developed economies have a chance of success if they enter developed markets such as the United States?

Yes, I believe that less developed economies have the ability to produce a company with the ability to thrive in America. For one America usually outsources our manufacturing to less developed countries in order to save money. This would cut out on having to depend on manufacturing, but will stop funding for it also. The product or service must at high level satisfy the consumer because entering a new market alone, let alone a new country is always a bit risky. With the proper research of similar companies and market history in the chosen areas, success is possible.

·   What competitive advantage could a firm from a less developed economy rely on in entering developed markets?

The power of having the control of pricing, depending on competition if there is any. Shipping and distribution would be the costs to worry about. Also, if the product is rare to Americans it will win sales from curious consumers who are willing to be the first to try. An advantage by itself would be the move alone, just by expanding to the U.S. would mean success due to the surroundings of a stronger financial economy.

·   What would likely be the best entry mode?

The best and most secure way to enter a market as big as the U.S., is by attaining some form of partnership or business venture with an already established company or with another strong company. Financial stability has to found first, finding investors, the right company and form of advertisement that is affordable etc…