Strategy enter mode Essay Example | Topics and Well Written Essays - 3000 words

Strategy enter mode - Essay Example However, failures in regard to these plans cannot be avoided, especially if the enter mode chosen is inappropriate for the target market involved. The entry in a foreign market can be a risky initiative, especially when the global market is not stable. However, choosing an appropriate enter mode can help to reduce the risks involved in such plans. The enter modes available to firms that aim to enter a foreign market are discussed in this paper. The literature developed in this field has been reviewed so that all aspects of this study’s subject are adequately explained. Moreover, five studies have been selected and are presented separately for highlighting important points of the issues under discussion. It is proved that a variety of entry modes is available to firms that wish to internationalize their activities. Still, not all these modes can be equally effective; indeed, the risks involved in the target market can be many. It should be also noted that the benefits from entering a foreign market may not be clear in the short term. For this reason, a firm trying to expand its operations globally should have alternative strategies available in case that the enter mode initially chosen is proved faulty. When trying to enter a foreign market, a variety of criteria is used in order to decide which enter mode is most appropriate. The resources available for supporting this project can highly influence the relevant decision (Levi 2006). On the other hand, the experience acquired through similar initiatives in the past can help a firm to choose an appropriate strategy for entering a foreign market (Levi 2006). In addition, when trying to entering a foreign market a firm is expected to face a variety of forces (Albaum and Duerr 2008). Managing these forces can be extremely difficult depending on the firm’s market position and its objectives (Albaum and Duerr 2008). For this reason, a firm