IB 3101 Lecture Notes - Lecture 10: Economic Bubble, Experience Curve Effects, Developing Country

42 views4 pages
Published on 17 May 2017
Course
Week 10 Chapter 13 Entry Strategy and Alliances
Global expansion decisions
Which markets to enter? Best ROI?
When to enter and on what scale?
Which entry mode to use
The choice depends on:
o Transport costs and trade barriers
o Political and economic risks
o Firm strategy
Location choice:
Favorable markets
o Politically stable
o Free market systems
o Relatively low inflation rates
o Low private sector debt
Less favorable markets
o Politically unstable developing nations with mixed or command
economies
o Developing nations where speculative financial bubble have led to
excess borrowing
Timing of Entry- Early
First mover advantages:
o Pre-empt rivals and capture demand by establishing strong brand
name
o Ride down the experience curve
o Create switching costs
Tie customers into their products or services making it difficult
for later entrants to win business
First move disadvantages
o Pioneering costs
Business failure
Promoting your product
Scale of Entry
Significant scale
o Strategic commitment
o Long term impact
o Invest so much money, it is not easy to pull out of the market
Small scale
o Learn about a foreign market
o Limiting exposure to new market
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
Monthly
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.