IB 150 Lecture Notes - Lecture 18: Intangible Property, Experience Curve Effects, Dominant Design
31 May 2017
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Document Summary
Firms expanding internationally must decide a. 1) which markets to enter a. 2) when to enter them and on what scale a. 3) which entry mode to use. Licensing or franchising to a company in the host nation. Establishing a joint venture with a local company. Several factors affect the choice of entry mode including. The optimal mode varies by situation what makes sense for one company might not make sense to another. The opening case: starbucks" foreign entry strategy explores the seattle coffee company"s global expansion, and how the company approached each of the basic decisions. The choice of foreign markets will depend on their long-run profit potential. Markets are also more attractive when the product in question is not widely available and satisfies an unmet need. Management focus: tesco"s international growth strategy describes tesco"s international expansion strategy. Tesco, the largest grocery retailer in the united kingdom has established operations in a number of foreign countries.
