BUSI 604 Chapter Notes - Chapter 7: Competitive Advantage, Overproduction, Direct Market
18 Aug 2016
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Conditions for expansion into global markets (4: expanding markets, gaining access to resources, cutting costs, capitalizing on special features of location. Market expansion risk variables (5: national customer preferences, national business culture, national regulations, national political risks, lack of global experience. Proactive motivations for international expansion (5: quest for profit, competitive advantage, market opportunities, economies of scale, tax benefits. Reactive motivations for international expansion (4: competitive pressure, excess capacity, overproduction. Package and label products to comply with legal requirements of the target nation"s market. Market entry considerations: location, which markets to enter, timing, what is the best time to enter these markets. Business attractiveness for location (4: market existence, national attributes, geography and socioeconomic attributes, openness to global trade. Forms of entry (3: licensing and franchising, exporting (directly or through independent channels) Foreign direct investment: joint ventures, acquisitions, mergers, wholly owned new ventures.
