Felix: Choose the best mode of entry into the European market for new wireless phone
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Felix, a U.S. technology company has recently developed a revolutionary wireless phone. The product offers exciting new features along with all of the features of current products, but at a fraction of the manufacturing costs. As the international business manager of Felix, you have been asked to choose the best mode of entry into the European market. Your have the following options:
o Export your product from the United States.
o Enter into an alliance with a large European company.
o Manufacture the product in the United States and set up a wholly owned subsidiary in Europe.
o License a European firm to manufacture and market the phone in Europe.
In preparation for your choice, list the pros and cons of each method of entry. Which choice do you present to your CEO? Support your decision.
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o Export your product from the United States.
The main advantage of this form of entry is its simplicity. It is the easiest, relatively less risky and simple form of market entry. However, the major disadvantage is that it does not allow organization to exploit market conditions or opportunities presented by the foreign market in a full fledged manner.
o Enter into an alliance with a large European company.
The main advantage of strategic alliance or JV with a large European company is that the company can leverage on their resources, presence and knowledge ...
Education
- BComm, University of Delhi
- Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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