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INTRODUCTION

When a company decides to enter foreign markets, it must choose an entry strategy. Many strategies exist with differing levels of company involvement. The level of involvement is positively related to the level of risk and control a company wishes to undertake. The diagram below illustrates this positive relationship. Several criteria should be considered before selecting the appropriate market entry method. According to Doole and Lowe (2001) company objectives and expectations, size and financial resources, existing foreign market involvement, skills, abilities and attitudes of management, the nature and power of the competition, the nature of the product or service itself and the timing of the move relative to competitors should be considered.

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Objectives The primary objective of this research paper was to gain knowledge about the different strategic choices available to firms with regards foreign market entry. The secondary objective was to explain the differences between direct and indirect export strategies.

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Research Methodology Secondary research was conducted in the form of reviewing relevant textbooks in the James Hardiman Library of NUIG. Relevant articles on electronic journals were also reviewed.

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FOREIGN MARKET ENTRY STRATEGIES

Figure 2.1: extracted from Doole and Lowe (2001, p.249)

Risk And Control in Market Entry Control


Manufacturing Own Subsidiary Acquisition Assembly Cooperative Strategies Joint Ventures Direct Exporting Strategic Alliances Distributors Agents Direct Marketing Franchising Management Contracts Indirect Exporting Piggybacking Trading Companies Export Management Companies Domestic Purchasing

Risk

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INDIRECT EXPORTING

Indirect exporting involves foreign market entry that is less complicated and less expensive than direct exporting methods. Firms that are unwilling to outlay much capital expenditure, but desire to take advantage of foreign market opportunities would be well advised to select a method of exporting indirectly. Indirect exporting can be subdivided into export agents and export merchants. Export agents receive a commission for exporting goods produced by firms, but do not have ownership over the goods. Export merchants buy the goods off the manufacturer and then export them. Indirect export modes include domestic purchasing, piggyback operations, an Export Management Company (EMC) or Export House (EH) and trading companies. 3.1 Domestic Purchasing

Domestic purchasing is a method of market entry which involves least company involvement. This export method often involves an unsolicited purchase request from a foreign commercial buyer. The company may not even have considered the export potential of their products until approached from the foreign buyer. As this method is involves the least amount of risk and control (involved the least financial investment, management planning, risk and control), the company often does not place strategic importance on exporting. Companies can use this method to sell off excess stock with the least inconvenience. Although this is the easiest method of exporting, it generates a relatively low level of revenue and the company is completely dependant on the foreign buyer. Also the company gains limited knowledge of the international markets, as it has no direct contact with them. The foreign buyer often picks up the goods at the factory gates and proceeds to transport the goods, market them and distribute them in one or more overseas market.

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3.2

Export Management Companies (EMCs) or Export Houses

Export Management Companies are specialist companies that act as the export department for a number of companies. They do not manufacture goods themselves but purchase finished products from a range of other companies. They can provide small or medium companies with access to foreign buyers, take orders from those foreign buyers and handle the transporting and distribution of the goods in the foreign market. The EMCs gain economies from scale through generating greater revenues, spreading administration costs over higher levels of sales and shipping larger quantities. Their core competence is in export logistics and deals with the necessary documentation and has extensive knowledge of purchasing practices and government regulations in the foreign markets. By exporting a wide range of goods from a number of different companies the EMC can offer their foreign buyers a more attractive sales package. Companies can gain a much wider exposure of their products in foreign markets in much less time and at a much lower cost than they could achieve on their own. However, exporting through EMCs also has many disadvantages. The EMCs export strategy may not be in-line with the preferred strategy of the manufacturers. The EMC has complete control over all foreign market decisions. The manufacturer acquires little knowledge of the foreign market, and so the manufacturer doesnt experience any exporting learning/experience curve. The EMC makes its money through commission and so has incentives to concentrate on foreign markets with the greatest short-term sales potential but avoid those markets, which involve greater initial capital expenditure but have much greater long-term market potential. As the EMC carries a range of products, their salespeople can only dedicate a proportion of their time to selling each product. The EMC may even export products that are in direct competition with each other. Manufacturers need to be prepared to devote resources to monitoring the performance of an EMC and invest in managing the business relationship. As the manufacturers revenue from exporting increases they become totally dependant on the EMC. Moving away from the EMC may prove difficult due to lack of foreign buyer contacts or market knowledge or because of contractual agreements.

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3.3

Trading Companies

One of the major advantages of exporting trough a trading company is that they normally have extensive contacts, experience and operations in many different trading regions in the world. One element of trading companys success is that they have often built up many long-term commercial relationships all over the world. Trading companies may accept goods as payment for other goods and then find a buyer for the goods they received in the countertrade. 3.4 Piggybacking

An established international distribution network of one manufacturer may be used to carry the products of a second company without such a network. The second manufacturer is said to be piggybacking on the first in these cases. The first company has an established reputation and contacts in an international environment. It handles the logistics and administration costs of exporting for the second manufacturer. Pigybacking can offer many advantages to firms; such as cheaper access to new markets, an established knowledge base of the foreign markets and economies of scale with regards to administration, shipping, marketing and distribution. Another way to circumvent the traditional Japanese distribution system is to explore creative methods of piggybacking with other successful companies (Kaikati, J.G. 1993). Therefore, piggybacking provides a faster way to penetrate a foreign market. Piggybacking may lead to unsatisfactory marketing arrangements in the foreign market. The strategic direction of either company may diverge over time causing a lack of strategic fit between the two products. Arrangements for providing technical support and after sales service for buyers in the foreign market may prove to be another difficulty, potentially leading to disagreement. This method of exporting is not ideal for building a long-term foreign market presence. If exporting is a significant long-term goal of the manufacturer, then indirect exporting methods may not prove to be the wisest strategic choice.

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DIRECT EXPORTING

Doole and Lowe (2001, p. 259) contend the nature, size and structure of the market will be significant in determining the method adopted. Companies wishing to pursue a long-term position in a foreign market need to be more proactive in their approach to market entry by becoming directly involved. Direct exporting allows firms more control over activities such as market selection, marketing mix variables, adaptation to local markets and monitoring competitor activity. However, a long term investment and commitment is needed from the firm to sustain foreign market activity. Due to the high cost and risk involved in direct exporting, Doole and Lowe (2001) suggest moving from an indirect approach gradually. The authors suggest establishing a beach head as an initial step in their exporting strategy. The beach head concept involves establishing operations in a relatively low key market, becoming a market follower, gaining the appropriate experience and then advancing through a more aggressive strategy. Doole and Lowe (2001) suggest a firms attitude and commitment to international expansion is crucial to the success of the operation. The size of a firm can also hinder or enhance international development as firms rely on the capability of staff for planning. When firms endeavour to commit to international expansion, the lack of consistent information, adaptation of the marketing mix variables and market segmentation are factors which need to be considered in detail. The host countrys government can have a proactive role to play in setting legislation and creating barriers to entry for international firms which may either support or impede a firms market entry strategy. 4.1 Agents

Agents are usually individuals or firms operating in a foreign market, contracted by the firm and paid a commission to obtain orders for the product. Sales targets are usually agreed when entering into a contractual agreement with agents. Agents are usually contracted to carry non-direct competing products therefore providing a lower exposure to risk. Although agents are the cheapest and quickest form of market entry,
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the long-term profitability is moderate to low with a short payback period. Agents can be beneficial to the company in that they have local market knowledge, the ability to form relationships and provide adequate feedback regarding further product or market development strategies. Doole and Lowe (2001) provide a number of key criteria for the selection of a suitable agent: Analyse the financial strength of the agent Determine their contracts and relationships with current and potential customers Clarify the nature and extent of their relationships with competing organisations Ascertain the premises, equipment and resources available including the personality and capability of sales representatives Agents work on commission and therefore do not take ownership of the goods. This can therefore limit their ability to influence a market and their motivation to improve performance. It is therefore in the interest of the firm to provide support and training to foreign market agents and to ensure an adequate flow of communication. Cateora and Graham (2002) outline agents can take the form of brokers, manufacturers representatives, managing agents and compradors. Each agent acts as a middleman for a specific purpose which is outlined by the firm wishing to enter the host market. 4.2 goods. Distributors Cateora and Graham (2002, p. 424) refer to distributors as merchant

Distributors differ to agents in that they take ownership and responsibility for the middlemen whereby the profitability and risk of unsold products is borne directly by them. Distributors usually seek exclusive rights for the sales and servicing of a particular territory where they represent the manufacturer in all respects. This exclusivity may however come at a larger cost to the firm. The capital investment can be particularly high for a firm exporting goods requiring specialist handling. Due to this large investment both parties undertake to maintain a long-term relationship. Doole and Lowe (2001) argue distributors are becoming fewer, larger and more
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specialised in their activity which adds to the difficulty for firms attempting to contract with a single distributor for several products. Cateora and Graham (2002) outline distributors can take the form of dealers, import jobbers and wholesaler or retailer. 4.3 Management Contracts

The internationalisation of services is evident here. Management contracts usually involve selling the skills, expertise and knowledge of firms in an international context. The contracts undertaken are usually those for installing management operating and control systems and the training of local staff to take over when the contractors are finished (Doole and Lowe, 2001; Paliwoda and Thomas, 1998). With government intervention initiating the deregulation of several industries, privatisation and outsourcing has become particularly evident in an international setting. Doole and Lowe (2001, p. 260) outline the importance of turnkey operations as effective methods for setting up, running and training staff abroad to operate a processing plant before returning to the home country again. 4.4 Franchising Franchising is a means of marketing goods and services in which the franchiser grants the legal right to use branding, trademarks and products, and the method of operation is transferred to a third party the franchisee in return for a franchise fee. Franchising is less risky and less costly due to the nature of the agreement. The opportunity to extend market coverage and transfer skills, competencies, systems and services exists for the franchiser. However, a significant investment in training and greater control in the contractual agreement, to ensure consistency and avoid dilution of the brand, is needed. The franchisee provides the local market knowledge, capital, time and resources needed to develop the franchise. Cateora and Graham (2002) state franchising is an important form of vertical integration and the fastest-growing method of market entry for a firm wishing to expand geographically. However, issues relating to the transferability of products, brands, services and techniques should be

Doole and Lowe (2001, p. 261) state:

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addressed and decisions relating to the extent of standardisation or local adaptation should be dealt with. The franchising of the fast food restaurant Mc Donalds is an example where adaptation to local tastes and culture is vital to the success of the firm. Foreign laws are generally more favourable toward franchising as it supports local ownership, employment and development while educating and training local staff. Franchising can help create a strong local presence in a market. Chan (1994) as cited in Doole and Lowe (2001) argues two forms of franchise agreement exists. The product/trade franchise grants franchisees the right to distribute the firms product in a specific market territory. The single-unit/multi-unit franchising on the other hand allows franchisees the responsibility to develop a territory and open a number of outlets. The two types of franchise agreement used by franchising firms are that of a master franchise and licensing. A master franchise or licensing, as outlined by Cateora and Graham (2002) can have the host government as a partner. The master franchise often operates a multi-unit franchising agreement or may take the form of a trading company (Doole and Lowe, 2001). Licensing is a second type of franchise agreement outlined by Cateora and Graham (2002) and outlines the use of the property, trademark and intellectual rights of the franchiser for a royalty or fee. 4.5 Direct Marketing

Using database marketing tools such as mail order, telemarketing, media marketing, direct mail and the internet can be a useful technique to expand a firms customer base abroad. Development of information and communication technology has led to considerable growth in the area of e-commerce. Direct marketing can be a useful market entry method when high barriers to entry exist in a foreign market or where markets have insufficient or underdeveloped distribution systems. Success using direct marketing can only be obtained if the standard product/service is customised to meet the personal needs of the target market in different markets (Doole and Lowe, 2001; Jeannet and Hennessey, 2004). The transferability of language, use of colour, symbolic meanings, culture and the target markets educational level all need to be considered when standardising the marketing effort across national boundaries. The

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availability and legislation regarding the accessibility of mailing lists should also be analysed. Custom officers are also likely to inspect packages coming into the host country often due to the political instabilities operating in the host country. Creating awareness of a brand name can also prove difficult in underdeveloped markets. The internet not only extends the customer reach but also leaves a company open to more competition and imitation. Issues of privacy need to be addressed when engaging in telemarketing, direct mail or Internet commerce. Concern relating to the security of credit card details is another factor hindering the development of online transactions (Doole and Lowe, 2001).

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MANUFACTURING STRATEGIES

Many firms become involved in foreign manufacturing strategies which involve direct involvement as they come under pressure to demonstrate commitment to a certain market or region. Doole and Lowe (2001) outline a number of reasons for investment in local operations: Firstly, in order to gain new business, local production demonstrates strong commitment and can often persuade customers to change suppliers. Secondly, local investment can defend existing business, for example, in certain countries importing companies are subject to restrictions as sales increase. By locating manufacturing abroad, firms may avoid this drawback. Some companies may invest in manufacturing strategies abroad in order to move with a large established customer. This may often be the case with component suppliers as it allows them to retain their existing business, compete with local component makers and profit from increased sales. By locating production in a foreign market many costs may be reduced such as labour, transport and raw materials. However, it is important to note that it is the cost involved in transferring technology, knowledge and skills, which usually proves to be expensive and often misjudged. Finally, government restrictions may be avoided if there restrictions are enforced to limit importation of certain goods. 5.1 Assembly

Assembly involves establishing plants in foreign markets simply to assemble components manufactured in the domestic market by the firm. This method of market entry is attractive for certain companies as the importation of components is usually subject to lower tariff barriers than assembled goods, therefore, decreasing costs for the firm. It can also be an advantageous strategy for the firm if the finished product is large and transportation costs are high. The assembly plant can also carry out a relatively simple activity, which involves local management, engineering skills and development support. Whereas, the domestic plant can focus on development and production skills and investment, hence, profiting from economies of scale.
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Tait (1997) as cited in Doole and Lowe (2001) proposes that a firm must consider how quickly the firm can pull out of a market when considering assembly operations as costs of operating an assembly plant can be subject to rapid change. Many companies usually build manufacturing plants with a long-term view in mind and supplement them with low cost assembly plants which are easier to move from market to market, therefore taking advantage of lower wage costs and government incentives. However, Doole and Lowe (2001) outline not all governments are as welcoming towards foreign investment in the form of assembly plants, as they feel they do not contribute significantly to the local economy in the long term. Unless the component parts for assembly are made locally, transfer of technology will be minimal and the assembly plant can be moved to another location if market conditions do not remain in their favour. 5.2 Wholly Owned Subsidiary

Keegan and Schlegelmilch (2001) outline that this form of market entry is the most expensive method, as it requires the greatest commitment in terms of management and resources and offers the fullest means of participating in a market. Doole and Lowe (2001) advise it should only be undertaken if demand for the market appears to be assured. When undertaking such an approach the firm must hold a long-term view, as the cost of withdrawing from the market will be substantial. Although sole ownership will provide the level of control necessary to fully meet the firms strategic objectives, the firm may not only incur the costs if withdrawal is eminent but also the companys reputation can be damaged both in the foreign and domestic market. Keegan and Schlegelmilch (2001) highlight that in many countries government restrictions may prevent majority or one hundred percent ownership by foreign companies. This reduces the amount of control the company will have over its operations in that country. Paliwoda and Thomas (1998) identify the political risk of nationalisation, expropriation or the imposition of new legislation affecting the firms profitability and ability to perform, is a threat to the success of this form of market entry strategy. The authors also recognise a high degree of visibility where with no

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local control or ownership, the firm may remain highly conspicuous and will be correspondingly associated with the home country of the parent company. Nevertheless, a wholly owned subsidiary can posses the additional advantage of avoiding communication and conflict of interest problems which may occur through acquisitions and joint ventures. 5.3 Acquisition

Johnson and Scholes (2002, p. 375) define acquisitions as where an organisation develops its resources and competences by taking over another organisation. Keegan and Schlegelmilch (2001) maintains that an acquisition can be an instantaneous and sometimes less expensive approach to market entry. However, acquisitions can still present the demanding and challenging task of integrating the acquired company into the worldwide organisation and coordinating activities. Johnson and Scholes (2002) have outlined a number of reasons for which a company might consider acquiring another company in order to gain market entry into foreign markets. Firstly, acquisition often allows the acquiring company to enter new product or market areas with more speed in comparison to internal development of the desired. Secondly, if a firm wish to enter a foreign market where the market has matured and share of that market must be taken from competitors, resistance to the company will be high. Acquisition in this case will meet with less retaliation from competitors. Also through acquisition a firm may acquire cost efficiencies, which may arise from the acquired company, as the acquired companies may be further along the experience curve and have achieved efficiencies, which would be difficult to cultivate internally. Doole and Lowe (2001) also outline that a firm may be under pressure from stakeholders to produce short profits, which increases the urgency for a quick market entry sometimes which can only be achieved through acquiring another firm. Doole and Lowe, 2001; Johnson and Scholes, 2002 contend the motives for engaging in acquisitions lie where immediate access to a trained labour force, recognised brands, existing customer and supplier contacts, an immediate source of revenue and an established distribution network exists.

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However, Doole and Lowe (2001) also delineate some drawbacks to this form of market entry. The authors suggest that the decision to undertake acquisition due to the need for a prompt market entry may not transpire, as it can take a considerable amount of time to search and appraise probable acquisition targets, engage in extended negotiations and then integrate the acquired company into the existing organisational culture. In addition, a company may acquire a company who possesses a de-motivated workforce, out of date products and processes and a poor image and reputation, which can be expensive to surmount. Doole and Lowe (2001) also highlight acquisitions by large international firms are often associated with job losses and transfer of production facilities overseas. Furthermore, the take over of a company, which is seen to be an integral part of a countrys heritage, can be meet with considerable national resentment. Paliwoda and Thomas (1998) recognise that in return for speedy access to a foreign market, the acquiring company has to make certain sacrifices, such as absorbing a company with certain desirable competencies, but one, which is also laden with other deficiencies such as debt or a weak product line.

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COOPERATION STRATEGIES

A cooperative arrangement is a partnership/a collaboration based on a contractual agreement which is shaped by a mutual balance of interests. arrangements have recently emerged as a fact of economic life. 6.1 Joint Ventures Cooperative

Cateora and Graham (2002) define a joint venture as a partnership between of two or more participating companies that have joined forces to create a separate legal entity.(p. 336). Therefore, joint ventures have two defining attributes; cooperation and autonomy. Joint ventures have sometimes been quoted as a double-edged sword. Joint ventures have proved to be the ideal form of cooperation in many different situations. They are, in essence, a way of sharing the risks of expanding internationall. This type of market entry strategy can enable companies to benefit from economies of size and scale and provide the opportunity to acquire new competencies. The versatility of joint ventures acts as both an attraction and as an aversion to adopting them as a strategy. Terpstra and Sarathy (1997) state that many governments prefer or even demand joint ventures, as they believe their nations will obtain more of the profits and technological benefits if national companies are involved. One major consideration, which favours joint venture entry, is oligopolistic competition. These industries are characterised by a small number of competitors therefore, the foreign firm may find it difficult to enter the market on their own due to the high entry barriers. Hollensen (1998) outlines a number of reasons for setting up a joint venture, which include; the addition of complementary technology or management skills provided by the partner, which may lead to new opportunities, partners located in the host country often make the market entry process quicker and due to the restriction of foreign ownership in some countries such as China, these can be overcome by joint ventures. Hollensen (1998) also outlines the stages involved in the formation of a joint venture.
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Firstly, joint venture objectives must be set, followed by a cost/benefit analysis of the forecasted venture. A careful selection of a partner is then suggested which is a critical stage in the process. A business plan must then be drawn up and agreed upon by the partners in writing. Finally a performance evaluation should be conducted to establish control systems for measuring the performance of the venture. According to Raffee and Eisele (1994) the failure of joint ventures occurs when the following factors are neglected: 1. Equal participation structures. 2. Careful choice of partner. 3. Cultural compatibility between partners. 4. Proper approach to operational and strategic leadership. 6.1.1 Advantages

A joint venture can offer a number of opportunities such as the gathering of new experience and learning and the movement of the company beyond its traditional boundaries. Joint ventures allow a company to gain access to expertise and contacts in local markets. These market entry strategies are known to reduce market and political risks associated with the foreign country. Economies of scale can be achieved due to the pooling of resources and the sharing of knowledge. Joint ventures also have to capability to overcome host government restrictions regarding the formation of foreign companies. Better relations can then be fostered with the host government. Local tariffs and non-tariff barriers may also be avoided. Finally, joint ventures are less costly compared to acquisitions. 6.1.2 Disadvantages

The problems encountered by international joint ventures can include, cultural barriers, different negotiating styles, different pay systems and different business practices. Other limitations of this type of entry strategy can include the opening up of internal business knowledge, which may create a potential future competitor. There is also a risk to the companys international profile and reputation if some franchisees under perform. Conflicts may arise if the objectives of the partners are incompatible. Control may also be diminished or even lost over foreign operations. Flexibility and

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confidentiality may also be lost in the process. Finally, partners may become locked into long term investments from which it is difficult to withdraw thus creating a drain on the rest of the companys interests. 6.1.3 The difference between joint ventures and strategic alliances:

The formal difference between a joint venture and a strategic alliance is that a strategic alliance is typically a non-equity cooperation, meaning that the partners do not commit equity into or invest in the alliance (Hollenson, 1998, p. 247). Joint ventures can be a contractual non-equity joint venture or an equity joint venture. A contractual non-equity joint venture is described by Hollenson (1998) as a partnership between two or more companies, which share the costs of investment, the risks, and the long term profits without the creation of a separate company. Therefore, strategic alliances and contractual non-equity joint ventures are basically the same. An equity joint venture on the other hand comprises of the creation of a new company where the foreign and local investors share the ownership and control. 6.2 Strategic alliances

Websters dictionary (2004) defines strategic as important and alliance as association of interests. Strategic alliances are well known tools to global mangers. Strategic alliances are described as a wide range of cooperative partnerships and joint ventures. They have three defining characteristics: 1. Two or more entities unite to pursue a set of important, agreed goals while in some way remaining independent subsequent to the formation of an alliance. 2. The partners share both the benefits of the alliance and control over the performance of assigned tasks during the life of the alliance. This is the most distinctive characteristic of alliances and the one that makes them so difficult. 3. The partners contribute on a continuing basis in one or more key strategic areas, for example, technology or products. According to Terpstra and Sarathy (1997) cross-border alliances can take many forms and have become the most popular method of internationalisation in recent years. The primary objective of strategic alliances is market entry. Strategic responses to

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competition in a cooperative manner may entail strategic alliances. Competition is only one reason to form strategic alliances, other reasons include; the reduction of risk, the attainment of economies of scale and complementary assets such as a brand name and government procurement. Trepstra and Sarathy (1997) believe strategic alliances are formed in three areas technology, manufacturing and marketing. Technology based alliances mainly occur in the biotechnology and information technology industries. The reasons for entering such alliances are to access new markets, reduce innovation time and to exploit complementary technology. Manufacturing based alliances arise particularly in the automobile industry where companies seek efficiencies through component linkages. Marketing/distribution based alliances are becoming the most popular form of alliance. Jeannet and Hennessey (2004, p. 307) believe the challenge in making an alliance work lies in the creation of multiple layers of connections, or webs, that reach across the partners organisations. These connections will ultimately result in the creation of a new company. Therefore, Jeannet and Hennessey (2004) believe strategic alliances are an intermediate stage in the formation of a new company or until the dominant partner wins complete control of the alliance. Firms, which employ strategic alliances, have the advantage of simultaneously penetrating several of their key markets. A condition however, of alliances is that each party has to bring a particular skill or resource to the union of the parties.

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CONCLUSION

The various strategies available to firms wishing to pursue activities abroad have been outlined. Firms seek to expand geographically due to the convergence of technology, the emergence of alternative communication structures and the increased competitive arena in which they operate. In order to remain competitive and avoid becoming a market follower, firms must be proactive rather than reactive in their approach to internationalisation. Market research, to identify the markets with the best fit and greatest potential, must be conducted prior to any direct or indirect investment in global ventures. Not every form of market entry strategy is suitable to every firm. Firms must consider their objectives, size, level of available resources and level of control and commitment they wish to exert, when deciding which form of market entry strategy to use when entering a foreign market. Due to the narrow operating scope of the project, only the strategies for market entry have been outlined. However, it is essential to realise that many other factors should be considered when undertaking to expand geographically, for example, an extensive internal and external environmental analysis should be conducted to identify the strengths of the firm and match these to the viable opportunities that exist in a market.

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REFERENCES

1. Cateora, P. R., and Graham, J. L. (2002) International Marketing. 11th Edition, New York, McGraw-Hill. 2. Chan, P. S., (1994) Franchising: key to global expansion. Journal of International Marketing. 2(3) as cited in Doole, I., and Lowe, R. (2001) International Marketing Strategy. 3rd Edition, Bedford Row, London, Thomson. 3. De Burca, S., Fletcher, R., Brown, L., 2004. International Marketing, An SME perspective. Prentice Hall, Essex. 4. Doole, I., and Lowe, R. (2001) International Marketing Strategy. 3rd Edition, Bedford Row, London, Thomson. 5. Hollensen, S. (1998) Global Marketing- A market-responsive Approach. UK, Prentice Hall, Ltd. 6. Jeannet, J-P., and Hennessey, H. D. (2004) Global Marketing Strategies. 6th Edition, New York, Houghton Mifflin Company. 7. Kaikati, J. G., (1993) Dont crack the Japanese system just circumvent it, Columbia Journal of World Business, Vol. 28, Issue 2 8. Keegan, W. J., and Schlegelmilch, B. B., (2001) Global Marketing Management: A European Perspective. New York, Financial Times Prentice Hall. 9. Paliwoda, S. J., and Thomas, M. J. (1998) International Marketing. 3rd Edition, Jordan Hill, Oxford, Butterworth-Heinemann. 10. Raffee, H. & Eisele, J. (1994) Joint ventures, Harvard Business Manager, 16(3) pp. 17-22.

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11. Tait, N., (1997) Financial Times, 15th October as cited in Doole, I., and Lowe, R. (2001) International Marketing Strategy. 3rd Edition, Bedford Row, London, Thomson. 12. Toyne, B., and Walters, P. G. P. (1989) Global Marketing Management: A Strategic Perspective. USA, Allyn and Bacon. 13. Webster, M., (2004) Available Online at: http://www.merriam-webster.com/ Accessed on 16th March, 2004.

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