1.

Transactional entries: Exporting/importing

2. Non-equity based market entries:

franchising, licensing, distributorship

non-equity partnership; strategic alliances; supplier partnerships (collaborative alliances)

3. Equity-based market entries: project marketing (also non-equity)

Partially owned subsidiaries

Partial acquisitions

Partially owned greenfield investments (you start a company from scratch in host country)
(international Joint ventures)

Wholly owned subsidiaries

Full acquisitions

Wholly owned greenfield investments

Equity= ownership stake on the company (for non-equity you only have a contract)

Green field Fully-owned greenfields Partially-owned greenfields

Acquisition Full acquisition Partial acquisitions

International projector will choose greenfield entry mode in a country as it wants to copy FSAs.

Greenfields investments are preferred in countries with high political risk

Integration gets more challenging with cultural distance. (might lead to acquisition failure)

Cultural distance causes problems

Beachhead is costly. To avoid the problem (Arnold)

-choose location first, then distributor

-focus on distributors’ market development capabilities (don’t assume that distributor will take
care of this critical to market development)

-manage distributors as long-term partners

-provide resources

-MNE should be the one implementing the marketing strategy

 -secure shared access to distributors critical market and financial intelligence

-link national disstributors with each other (Develop a network)

Troubled laggard

-firm that experiences deficiencies, often in the area of innovation

-compensates by partnering with another firm

-is a potential rival with stronger capabilities/FSAs

^Risk: the firm can become trapped in a dependency spiral (might lead to losing core
competences)

Mergers: A+B=C

Acquisition A+B=Ab / B+A=Ba (if a acquires b or vice versa)

Synergy means that the combined value of the M&A is greater than individual.

Mergers and acquisitions

Integration obstacles: pre and post integration challenges

Regulatory constraints:

Antitrust laws