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  • Essay / Foreign Market Entry - 2273

    Foreign Market Entry1.0 ObjectivesThe author's objective in this article is to discuss effective modes of entry for companies planning to venture into the market international. The entry mode methods discussed aim to help companies formulate an effective international business strategy and position themselves to successfully establish themselves in the global market. 2.0 Core Theory The core theory presented in this paper is developed based on a comprehensive framework of entry modes. choice. These modes of choice would determine the success factor of the international business strategy, and to choose these choices, several important factors must be taken into account. These factors include the company's situational factors, consideration of the foreign environment, and moderating factors that would directly influence the company's desired mode of choice. Referring to Appendix A, we find the mode choice of the Driscoll framework which describes the entire concept discussed. To briefly illustrate, the company should evaluate the two situational factors that would directly affect the desired level of different feature modes. After selecting the desired modes, the company will also need to determine potential moderating influences that would affect the desired mode. Thus, a re-evaluation based on moderators would take place to determine the most effective entry modes. By selecting the right entry mode, the company would incorporate an effective business strategy for its international business plans.3.0 ArgumentsThe article written by Driscoll aims to present an argument for developing a comprehensive framework for understanding choices input mode. In the article, she illustrated the different entry modes in international markets, analyzed the different characteristics of entry modes, discussed the number of situational influences and moderating factors, and presented a comprehensive understanding model with remarks on managerial implications. Some of his arguments include the three major groups of foreign entry modes should have no further classification unless they have similar meanings such as those cited by a reference; and the five key characteristics of entry modes which are also supported by other authors such as Agarwal and Ramaswami 1992;...... middle of article ......ended on the correctness of the management of these factors. Its categorization and documentary evidence on these factors are also accurate and comprehensive and cover many aspects of the dynamic analysis of the foreign situation. Compared to one of the research sources of Taiwanese author Aihwa Chang (1998) in Appendix C [Please check the date and attach the article Appendix C], the author related 5 modes of different input; namely choice according to industry traditions, random choice, predetermined choice and contingent choice [you may or may not need to add more items] which does not cover a consulting aspect of the whole the real environment. Then, as the author associated several factors such as economic efficiency, financial commitment, control, flexibility and experience, which has some similarity with Driscoll, the content discussed however does not review completely the success factor of the input selection. Finally, Driscoll's concluding remark recommended that businesses should be flexible and adaptable to changing circumstances of their entry mode choices from time to time, as this would have a high chance of success and sustainability in international global trade.