GMS 200 Lecture 5: Week 5

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

Types of market entry strategies: y non-equity modes (exporting, licensing and franchising) y equity modes or direct investment strategies (joint ventures, mergers and acquisition) Non-equity modes to overcome fear y new firms need to overcome fear y minimizing international market and political risks y helps to obtain knowledge. Pizza hut case y 70% of the franchise is located in thailand y. In 2000 minor group decided to break ties with pizza hut and run its own business. Joint venture y y a "corporate child" - a new entity given birth and owned jointly try two or more parent companies y three possibilities: Majority owned (more than 50% equity) y for e. g. bombardier sifang transportation ltd. between bombardier and sifang. Transportation (china) y won us billion contract to build the world"s fastest commercial train in china. Mergers and acquisitions y accounts for 70% of all fdi y quick way to enter a new market y gain market power.