COMMERCE 4SA3 Chapter Notes - Chapter 12: Experience Curve Effects, Longrun, Daimler-Benz
6 Feb 2019
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Jbc strategically entered india on bet of long-term growth potential of the market. By 2013, they were the largest heavy construction manufacturer in india. Decision should be based on the nation"s long-run profit potential by assessing the political and economic situation of that country. However, there can be pioneering costs for early entrants such as spending time & money learning the rules of the game, teaching consumers about the product and regulation changes in the host country. In these cases it could be beneficial to enter later: scale of entry and strategic commitments: large-scale entries is a major strategic commitment but could have first-mover advantage. Small-scale entries allows firms to learn about foreign market. Entry modes: exporting; many begin with this. Advantages is that it avoids high costs in setting up manufacturing plant and can help firms achieve experience curve and location economies (i. e. sony with global hdtv market)
