第九章 Entry Strategies and Organizational Structures进入战略和组织结构 国际企业与跨文化管理课件

China-USA Business Review, August 2015, Vol. 14, No. 8, 395-398 doi: 10.17265/1537-1514/2015.08.002Foreign Market Entry StrategiesKenneth ShawState University of New York, Oswego, USAThis paper discusses issues surrounding foreign market entry. Initially, the paper attempts to determine why andhow a company makes a decision to enter a foreign market. Then there is a discussion of the timing and scale ofentry which must be considered. Next is a discussion of government resources and organizations that can assist inentry decisions. Modes of entry are then examined followed by three case studies in foreign market entry.Keywords: foreign market entry, timing, scale, government resources, international business, US Export ImportBankIntroductionIn recent years, foreign market entry has become increasingly popular. Entry decisions are also gaining attention from researchers of international business.Entering into a foreign market can potentially offer a firm many benefits in the global marketing area. The primary obstacle encountered by a multi-national enterprise when entering a foreign market is the selection ofan entry mode. There are many decisions that need to be made when choosing to enter a foreign market. Thesedecisions include which foreign markets to enter, when to enter them, on what scale, and the choice of entrymode. All comprehensive foreign market entry strategies offer unique benefits and costs and no two specificfirm’s entry strategies and results are the same. This review will look at various cases of foreign marketexpansion and seek to find if there is a best entry strategy.When deciding which foreign markets to enter, the choice is based upon an analysis of a nation’s long-run profit potential. Not all nations can offer the same profit potential to a firm and the potential is based on factorssuch as the economic and political environment of the country. The economic attractiveness of a country iscomprised of the size and demographics of the market, the present and future wealth of the country, the livingstandards, and potential economic growth. A country’s attractiveness can also depend on the benefits, costs,and risks associated with doing business in that country. Costs and risks involved with conducting business in aforeign country are generally lower in countries that are economically advanced and politically stable whichhave a free market system with little inflation or private sector debt. However, the potential for growth may begreater in an undeveloped country. Lastly, the value an international business can create in a foreign market isanother important factor. This is dependent on how suitable the product offering would be to that market andthe nature of competition in the country. Entry in a foreign market will be successful, if the internationalbusiness can offer the market a product that is not readily available and satisfies an unmet need. That value willKenneth Shaw, Ph.D., associate professor, Department of Management and Marketing, State University of New York atOswego, USA.Correspondence concerning this article should be addressed to Kenneth Shaw, 312 Rich Hall Oswego, NY, 13126, USA.E-mail:***************.All Rights Reserved.FOREIGN MARKET ENTRY STRATEGIES396 offer the business the opportunity to charge higher prices and rapidly increase sales. Taking all of these factors into consideration, a firm should then rank countries based on their long-run profit potential and attractiveness (Porter, 1980).Timing and ScaleAfter a firm has chosen an attractive market, the next decision to be made is the timing of entry. Entry is considered early, when an international business enters the market prior to other foreign firms and late when it enters after other firms have already established themselves in the market. Entering the market early brings first mover advantages that include the opportunity to establish a strong brand name, acquire demand from the market, increase sales volume, and create switching costs that attach a customer to a given product or service. However, entering the market early can bring pioneering costs that a firm that enters the market later may be able to avoid. Pioneering costs include the costs of promoting and establishing the product. The probability of a firm surviving in a market increases, if they enter after several other firms have already established the market. Government regulations can also put an early entrant at a disadvantage, because laws can hinder the value of the early entrant’s investment (Hill, 2013).The next decision that needs to be made is the scale of entry and strategic commitments. Significant assets and resources are needed for a large scale foreign market entry, which commits a firm to the market. Strategic commitments alter the competitive playing field for other firms and produce various changes and inflexibility for the firm. Large scale market entry implies rapid entry and offers the first mover advantages, such as demand acquisition, scale economies, and switching costs. An entry on a smaller scale allows the firm to build themselves up gradually while becoming better acquainted with the market and limiting exposure to the market.Small scale market entry can also make it difficult for the firm to increase market share, because of their lack ofcommitment to the market. The small scale entrant reduces potential risk but also misses out on the opportunity for first mover advantages (Porter, 1980).Taking all of these considerations into mind, there are not right or wrong decisions for a firm to make. Each series of decisions offers unique rewards and benefits and costs and risks. Entry strategies that are associated with high risk include entering into a developing nation and entering on a large scale. Such entry strategies offer many benefits as well. Entering on a large scale can offer first mover advantage and long-run potential in the market.ResourcesThere are many resources available through governments, non-governmental organizations, and multinationals which facilitate a solid framework for entering any foreign market. Most of these resources are free or have very low costs. Some examples of these resources include the United States Commercial Service, which administers market reports, local partner searches, trade missions, and support for U.S. firms interested in pursuing exporting or entering target markets. This service operates in the U.S. and 100 other foreign countries. Another example is the Overseas Private Investment Corporation, an agency of the federal government that provides political risk insurance and project financing for projects that seek direct investment by U.S. firms. The U.S. Export Import Bank is an export credit agency of the federal government that provides insurance and financing for various projects that involve direct investment by U.S. firms across various industries. The U.S. Trade Development Agency offers grants for overseas projects that involve U.S. exports.All Rights Reserved.FOREIGN MARKET ENTRY STRATEGIES 397The Overseas Security Advisory Council aims to help U.S. businesses better protect their foreign operations,especially in countries with unstable conditions. The American Chamber of Commerce offers advocacy andsupport for U.S. firms in various foreign nations. A last example is The Princeton Council on World Affairswhich offers education, information, and strategic business development services for firms looking to expand inforeign markets (Gordin, 2011).Once a firm decides how they are going to enter the market, the next decision to make is what mode of entry they are going to pursue. There are six different modes of foreign entry: exporting, turn-key projects,licensing, franchising, establishing a joint venture with a host country firm, or establishing a wholly ownedsubsidiary in the host country. Each mode of foreign market entry offers various advantages and disadvantages(Root, 1987).In a case that examined 20 Romanian companies and their strategy of foreign market penetration, various conclusions were made. The objectives of this study were to identify a Romanian exporting company profile, tohighlight the organization of marketing activities for exporting enterprises, to identify the areas of activity forexporting enterprises, to identify the main export markets of the Romanian exporters, to identify theinternational experience of the Romanian exporting companies, and to identify the type of strategy used forentry into foreign markets by exporting Romanian enterprises and testing the model for grouping strategies onthe proposed foreign market penetration (Harangus & Duda, 2009). The main export markets of the surveyedcompanies were those of the European Union (EU), with over 88% of exports in 2007 being directed to marketsin the EU. The most targeted foreign markets were, in order of relevance, Italy, Germany, France, Hungary,Bulgaria, Austria, and also the United States (Harangus & Duda, 2009). The results of the research concludedthat approximately 60% of companies with high turnover used forms of direct export or had representationabroad. High turnover is defined by the study as having over 51 billion lei in capital (lei being the plural of leu,Romania’s currency). It was also concluded that 50% of companies with turnover less than 50 billion leipreferred cooperating with a foreign intermediary for their products to enter the foreign markets. This studyalso concluded that the most common strategy of foreign market entry for Romanian exporters in the developedmarkets of the EU or the U.S. was direct exporting, while the emerging markets of Central and Eastern Europeor Asia used the more cautious approach of a local intermediary in most cases.Another case looked at Tesco, the largest grocery store chain in the United Kingdom that owns a 25% share of the British market. By the early 1990s, their business was already booming and the company wasgenerating a large amount of free cash flow. Senior management had to decide what to do with the excessmoney they were earning and one strategy they agreed upon was foreign expansion. They decided that theywere interested in entering emerging markets in Eastern Europe or Asia. These emerging markets offered themone limited competitor and strong potential for growth. Their first endeavor was into a state-owned grocerychain with 43 locations in Hungary in 1994, when Tesco acquired a 14% market share. Then in 1995 theyacquired 31 stores in Poland. In 1996, they acquired 13 more stores in the Czech Republic and Slovakia (Hill,2013).Tesco began expanding into Asia in 1998 in Thailand, when they purchased 75% of Lotus, a local food retailer. Then they expanded into South Korea in 1999, when they partnered with Samsung. They then enteredinto Taiwan in 2000, Malaysia in 2002, and China in 2004. They were initially attracted to the Chinese marketbecause of its large size and rapid growth. They ultimately settled on a 50-50 joint venture with Hymall, ahypermarket chain. In 2007, Tesco entered the U.S. grocery market. By 2010, they had generated over 19 All Rights Reserved.FOREIGN MARKET ENTRY STRATEGIES398 billion euros outside the United Kingdom. They believe that their success was based upon devoting a large amount of attention to transferring its core capabilities in retailing to the new acquisitions instead of sending expatriates, their partnering strategy with Asia, and their focus on markets with good growth potential (Hill, 2013).Another case involves the 2004 strategic alliance of Cisco Systems and Fujitsu, a Japanese computer, electronics and telecommunications equipment company. By entering into this alliance with Fujitsu, Cisco believes that it can accomplish a number of different goals. First, both firms are pooling their research and development efforts that enable them to share technology and produce new products more easily. Second, by combining Cisco’s cutting edge technology and Fujitsu production skills, they believe that they will be able to offer more reliable products for consumers. Third, Fujitsu will provide Cisco with a more prominent sales presence in the Japanese market. Fourth, sales may also increase by the bundling of the co-branded routers together with other telecommunication that Fujitsu offers and creating a marketing plan that provides a comprehensive solution to consumers. The alliance began offering their first products in May of 2006. Both firms benefit from the alliance.ConclusionsAs can be seen from the various cases and examples of foreign market entry, there is no right or wrong way of entering a market. Each case is unique and requires a special strategy that is completely different from any other. There is also no entry strategy that is superior to others. Each different strategy can be successful if the firm takes the time before hand to extensively research the attractiveness of possible countries, their political and economic environment, their potential for long-term growth, and the benefits and costs associatedwith entering any given market.ReferencesGordin, A. (2011). Destination unknown, opportunity certain. Industry Week, 260(2), 52-54.Harangus, D., & Duda, D. D. (2009). The strategies of foreign market’s penetration used by Romanian enterprises from Westernfive region. Proceedings from Annals of Danube Adria Association for Automation and Manufacturing (DAAAM).Hill, C. W. I. (2013). International business: Competing in the global marketplace. New York: McGraw-Hill Irwin.Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press. Root, F. (1987). Entry strategies for international markets. Lanham: Lexington Books.All Rights Reserved.。

Chapter 9 Global Marketing Management: Planning and Organization第9章全球营销管理：计划和组织1. Benefits of global marketing(1)When large market segments can be identified, economies of scale in production and marketing can be important competitive advantages for multinational companies.(2)Transfer of experience and know-how across countries through improved coordination and integration of marketing activities is also cited as a benefit of global operations.(3)Marketing globally also ensures that marketers have access to the toughest customers.(4)Diversity of markets served carries with it additional financial benefits.2. Planning process(1)Preliminary analysis and screening---Matching company and country needs(2)Adapting the marketing mix to target markets(3)Developing the marketing plan(4)Implementation and control3. Alternative market-entry strategies(1)Exporting出口模式输出的多是有形产品，产品在目标国家境外制造，然后运输到该国市场销售。

2023年国际商务师真题Section 1: Multiple Choice Questions (每题4分，共40分)1. What is the main goal of international business?a) Maximizing profitsb) Market expansionc) Building relationshipsd) Creating employment opportunities2. Which of the following is an example of a trade barrier?a) Import quotasb) Free trade agreementsc) Investment incentivesd) Intellectual property rights3. Which of the following is not a major factor influencing the choice of foreign market entry mode?a) Market sizeb) Competitive landscapec) Political stabilityd) Exchange rates4. What does FOB stand for in international trade?a) Free on Boardb) Freight on Boardc) Free of Charged) Freight of Bill5. What is the purpose of a letter of credit in international trade?a) Guaranteeing payment to the exporterb) Allowing for price negotiationsc) Enforcing trade regulationsd) Facilitating customs clearance6. Which of the following is a disadvantage of using a joint venture as a market entry strategy?a) Shared risks and resourcesb) Shared profits and lossesc) Limited control over operationsd) Understanding of local market7. The World Trade Organization (WTO) is an international organization that aims to:a) Promote regional trade agreementsb) Facilitate dispute settlementc) Promote fair labor practicesd) Regulate exchange rates8. What is the main purpose of a market research analysis in international business?a) Identifying target marketsb) Developing marketing strategiesc) Assessing competitive landscaped) Estimating market demand9. Which of the following is an example of indirect exporting?a) Setting up a subsidiary abroadb) Licensing a product to a foreign firmc) Selling products directly to foreign customersd) Collaborating with a local distributor10. What is the primary role of a customs broker in international trade?a) Ensuring compliance with import regulationsb) Negotiating favorable terms with suppliersc) Managing export documentationd) Facilitating communication with foreign partnersSection 2: Short Answer Questions (每题10分，共40分)1. Explain four key advantages of international trade.2. Compare and contrast a joint venture and a wholly-owned subsidiary as market entry strategies.3. Identify and briefly explain three major risks in international business.4. Discuss the impact of exchange rate fluctuations on international trade.Section 3: Essay Question (30分)Choose one of the following essay questions and write a well-structured essay of approximately 500 words:1. Analyze the impact of digital technologies on international business operations.2. Discuss the importance of corporate social responsibility in international business.3. Evaluate the role of government policies in promoting or hindering international trade.ConclusionIn conclusion, the 2023 International Business Exam covered a range of topics including trade barriers, market entry strategies, international organizations, and the role of government policies in international trade. The exam assessed students' understanding of key concepts and their ability to analyze and evaluate various aspects of international business. By providing multiple choice, short answer, and essay questions, the exam aimed to test both theoretical knowledge and practical application. Overall, the exam challenged students to demonstrate their comprehension of international business principles and their ability to utilize them in real-world scenarios.。

4’*5=20分1.What are the stages of life cycle of product? Provide a short description for each of them. Chapter1P41.product development: development &research (D&R )costs mount2. Pre-introduction:marketing planning is involved, especially promotion costs mount3. introduction--distribution/price strategyAn initial low pricing policy to get into the market, though with little competition, price may be high initially to recoup development costs. Selection of a distribution model to get the product onto the market.4. growth--sales revenues outnumber costsThe growth stage is typically characterized by a strong growth in sales and profits.5.maturity成熟-competition is getting fierce, and profits level off. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake.6. decline-sales /prices/profits drop; consumers are seeking for new productsEventually, the market for a product will start to shrink.2.What difficulties did Wal-Mart encounter遇到when it tried to expand Chinese market, and how did Wal-Mart solves these problems according what you have learned inthis semester? Chapter3 P50Regionalism:Wal-Mart have difficult in interprovincial transportation and distribution of the products they cover.How:Wal-Mart encourages suppliers that sell nationwide to use the distrubution center and offers back-haul services from their local e distribution centres and back-haul trucks.Nontariff Trade Barrier:government efforts to keep Chinese products on, and imported products off shelves.How:Chinese customers are still interested in trying new, imported goods. Financial Matters:Regional fragmentation of finance regulation, tax laws, and other institution has effect on the payment side of the supply chain. How:Wal-Mart has worked with the Chinese government to set up a holding company to consolidate joint venture distribution and finance. Inefficient LTL & Private, Nationwide Parcel Delivery:The choice of service providers is limited, and tracking, pickup, and delivery are unreliable.How:Chinese state-owned transport firms and foreign freight or parcel companies have recently been established.3.List at least five international market entry strategies, and provide a short description for each of them. Chapter2 P37 Exporting：Sell products /goods/visible commodities to the buyers fromdomestic markets to oversea marketsAgency：A global company grants an organization ( called as an agent )to sell its productsFranchising: Franchising is the practice of the right to use a firm's successful business model and brand for a prescribed period of time. For the franchiser, the franchise is an alternative to building "chain stores" to distribute goods that avoids the investments and liability of a chain. Contract Manufacturing :A contract manufacturer ("CM") is a manufacturer that contracts with a firm for components or products. It is a form of outsourcing.Management contracting: A management contract is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise that performs the necessary managerial functions in return for a fee.Original Equipment Manufacture (0EM):Original equipment manufacturer (OEM) is a term used when one company makes a part or subsystem that is used in another company's end product.FDI4.Make a comparison among absolute quota(绝对配额）/tariff-rate quotas(关税配额）/voluntary export restraints (VERs 自愿出口限制）absolute quota:To impose a maximum amount on the quantity or amount of imports of certain commodities for a specified period of time.tariff-rate quotas:The importing country sets a quantitative limit on the quantity of imported goods, and applies a higher or general tax rate to the goods imported after exceeding the limitVoluntary export restriction: is an action unilaterally taken and implemented by the exporting country. It is called "voluntary" and means that the exporting country has the formal right to cancel or modify the restrictive measures.5.Why do marketeers want to expand overseas markets, carrying an established product? Chapter7 P122 Saturation: the home market has peaked and is now saturated with your product.Declining interest：Foreign demand：receiving an unsolicited demand from a foreign buyer. Share enlargement: flush with cash or energized with curiosity,they wish to increase their sales by increasing their petition Exchange value: the value of national currencies can fluctuate wildly, often with deleterious effects on domestic companies.when production cost rise and domestic buying power declines, the marketeer have no choice but tolook offshore for customers.Preproduction penetration: prior to setting up full scale offshore production, a company will sell to the targeted market as a way of testing demand , observing price elasticity, or educating the population about a product. Government request: many developing countries finance their growth through exports, since domestic buying power is limited.6.Internet research is becoming widespread nowadays. Can you illustrate the benefits and shortcomings of internet research?Benefit: speed, immediacy, and a complete disregard for physical distance.1.focused and purposeful (so not recreational browsing),es internet information or internet-based resources3.tends towards the immediate (drawing answers from information you can access without delay)4.tends to access information without a purchase price. shortcomings1.unrecognized bias,2.difficulties in verifying a writer's credentials3.not be the most suitable resources to answer a particular question1.Advertising campaign 广告营销A planned set of adverting messages repeated in a variety of media.modity 商品Any article exchanged during trade. More commonly, it’s used to refer to raw materials.3.Consumer products 消费品Goods purchased by individuals or households for their personal use, as opposed to products purchased by businesses.4.Created market 新创市场A market where a product is placed on offer with no previous demand.5.Distributor 分销商A company that undertakes to purchase products from the manufacturer for resale in a given market.6.Dumping 倾销The export of goods to a market for sale at a price below actual production cost in an effort to gain market share.7.Exchange risk 外汇风险The risk associated with the potential for a change in the market value of currencies that occurs between the time an international contract is agreed upon and when payment is actually made.8.Expropriation 征用The forcible takeover by a local government of a foreign business operatingwithin its borders. The seizure generally happens without payment.9.Found market 新发现市场A market wherein consumer demand initiates the development of goods or services to meet that demand.10.Hard currency 硬通货National currencies that hold an internationally stable value over an extended period and have great ease of exchange.11.Marketing max 营销组合The combination of the marketing elements of product, price, place and promotion to generate the sale of goods or services.12.Market research 市场调研The objective and systematic process of locating and analyzing information for making decisions about a specific market or product.13.Niche marketing 利基营销/补缺营销Marketing strategy in which a company focuses its entire effort on a small, specialized segment of a larger market.14.On-the-ground 实地考察Research or information acquired in the actual market that’s the subject of the research.15.Penetration 市场渗透The degree to which a product and its promotion have attained market share in any targeted market segment.16.Positioning 市场定位The way that customers perceive a company’s product in relation to that of its competition.17.Product life cycle 产品生命周期The series of stages through which a product passes, including development, introduction, growth, maturity and decline.18.Segmentation 市场细分A strategy wherein a large market is subdivided into ever smaller pieces, with each new segment being the focus of its own marketing plan and effort. 19.Soft currency 软通货National currencies that have an unstable international value and are difficult to exchange, due to the issuing nation’s lack of recognized reserves.20.Statistical research 统计研究A method that utilizes date and measurements to determine consumer behavior and potential demand.。

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