Explain the First Mover Advantage and the six modes of entry into foreign markets. Identify a foreign market that you will be entering. What are the advantages and disadvantages of each? Identify the best market entry strategy that you will be using for the foreign market of your choice.
The first mover advantage refers to the first organization which enters a market and sells a commodity for the first time hence obtaining a competitive advantage from the act. First movers can also be referred to as market pioneers. There are several modes of entry into an international business such as exporting, licensing, franchising, joint venture, mergers and acquisitions, and the turnkey project (Modes of entry to an international business, n.d).
Exporting involves the acts of selling goods and services abroad with a purpose of supplying a home country's firm with revenues. Less risks and need for limited financing are the advantages associated to this method. The disadvantages will only depend on the type of products one is exporting. Licensing involves the act of leasing an ...
The solution discusses the first motor advantage and 6 modes of entry.