Play It Safe at Home or Go Take a Risk Go Abroad

1) Develop six feasible strategies to minimize risk?

Partnership & strategic Alliances

Partnership & Strategic Alliances is an international entry mode involving a contractual agreement between two or more enterprises stipulating that the involved parties will cooperate in a certain way for a certain time to achieve a common purpose. With using this strategies we obtain reduced risk through shared cost reduce investment needed and seen as local entity. Based on the case study, we can see that its importance to have someone that well-known about the market. For the example is when Coe’s venture into Puerto Rico where that they failed miserably. They couldn’t find the right personnel to handle it. The store manager hadn’t been able to handle the massive amount of collection. Besides that, His business team development already find out on potential partners in Matomoros and Monterrey. On the other hands, it doesn’t matter how much they understand the foreign culture, the locals always knows better.

Greenfield venture

Greenfield venture is an international entry mode involving the establishment of a new, wholly owned subsidiary. The will gain local market knowledge; can be seen as insider who employs local; maximum control with using this strategies. Other than using partnership strategy, Greenfield venture also have an advantage seen as insider but with totally control by our own. Besides that, it will make as more close to the possible customer and have better understanding about them while gain local market knowledge. At the same time, the company unnecessary to share any knowledge or system been used with others and maintain secret recipes of success. Regarding to the case study, we can see that there are nothing down at Mexico doing like Coe’s so they will be a first mover in the Mexico. It will be an extra advantage to them using Greenfield venture as well as been first mover. So they can monopoly the market.

Insurance policy

There are so high...