-‐
Ajinkya
Deshpande
Department
of
Management
Studies,
IIT
Delhi.
ajinkya.deshpande@dmsiitd.org
Factors
affec@ng
market
entry
Entry
mode
Cultural
distance
Firm
size
• Export
• License
and
franchise
• Alliance
• JV
• Wholly
owned
subsidiary
Entry
@ming
• Lock
up
access
to
key
resources
• Opportunity
to
set
paMern
of
consumer
preference
• Ability
to
learn
market
aMributes
for
longer
period
of
@me
• Larger
firms
will
have
more
resources
and
market-‐
specific
knowledge
to
par@cipate
in
the
global
markets
Economic
distance
• Countries
close
in
economic
development
will
have
similar
market
segments
and
similar
physical
infrastructure.
• Underlying
cultural
dimensions
of
a
society
define
its
consump@on
paMern
• Cultural
distances
affect
JVs
Country
openness
Country
risk
• Uncertainty
about
the
poli@cal,
financial
and
economic
health
of
a
country
can
affect
the
market
entry
• Openness
can
increase
or
decrease
entry
success
• Openness
can
increase
demand,
compe@@on
and
efficiency
• Increased
compe@@on
from
new
foreign
players.
1.
Customiza8on:
New
local
products
according
to
the
emerging
market.
2.
Product
Life
Cycle:
Classic
cycle
assumes
that...