Each of the above-mentioned options has its own pros and cons. These will be discussed in detail in the next chapter. In short, strategic alliances can have low capital and low management input and in FDI's you can have higher management input but with higher capital investments.
It is never easy to finalize the entry strategy for an international expansion. The firms' resource commitment, profits, the degree of control and investment opportunity is at a very high stake. (Shrader, 2001: 51). It is also influenced by firm-level factors which include firm size, requirements for complementary resource, financial funds, experience and strategic orientation and country level factors like political risk, culture, values, corruption etc. (Shrader, …show more content…
I have been observing the Pakistani market for last few years and I find it very interesting to know that Vodafone is not in Pakistan but operating in India since 2007. The main research question will be:
• Why couldn’t Vodafone make it into Pakistan market yet?
• What can be the market entering strategies for Vodafone to enter into Pakistan, if the company plans so?
1.6 Purpose
The basic purpose of the research is to determine a suitable entry mode for an international company to enter the Pakistan telecom market successfully. The basic purpose consists of following sub-questions.
• What factors influence the companies entering into a new market?
• Which age group should the company target initially?
• How can the company compete in a new market with old and experienced players? 1.7 Delimitations
For the academic purpose, we are studying one specific target market: Pakistan mobile telecommunication market for foreign investors. Also, all kinds of determinants for foreign entry mode selection were not discussed in this paper, it is narrowed down to only determinants that are relevant for the host …show more content…
Every company can think of different strategies according to their demands whenever they plan to expand their business across borders. According to Erramilli (2002: 231), entry strategies can be divided into equity and non-equity based. The basic difference between the two is of investment requirement and level of control. Tang & Liu (2011: 52-53) indicates that in equity-based strategies international firms either partially or wholly own one of the local firms. It includes joint ventures, FDI, Greenfield investments and wholly owned subsidiaries. As it appears from the name, in non-equity based strategies equity investment is not required. It includes Contractual Agreements (Licensing, strategic alliances) and exports (direct and indirect). Market entry strategies can be categorized as
It is never easy to finalize the entry strategy for an international expansion. The firms' resource commitment, profits, the degree of control and investment opportunity is at a very high stake. (Shrader, 2001: 51). It is also influenced by firm-level factors which include firm size, requirements for complementary resource, financial funds, experience and strategic orientation and country level factors like political risk, culture, values, corruption etc. (Shrader, …show more content…
I have been observing the Pakistani market for last few years and I find it very interesting to know that Vodafone is not in Pakistan but operating in India since 2007. The main research question will be:
• Why couldn’t Vodafone make it into Pakistan market yet?
• What can be the market entering strategies for Vodafone to enter into Pakistan, if the company plans so?
1.6 Purpose
The basic purpose of the research is to determine a suitable entry mode for an international company to enter the Pakistan telecom market successfully. The basic purpose consists of following sub-questions.
• What factors influence the companies entering into a new market?
• Which age group should the company target initially?
• How can the company compete in a new market with old and experienced players? 1.7 Delimitations
For the academic purpose, we are studying one specific target market: Pakistan mobile telecommunication market for foreign investors. Also, all kinds of determinants for foreign entry mode selection were not discussed in this paper, it is narrowed down to only determinants that are relevant for the host …show more content…
Every company can think of different strategies according to their demands whenever they plan to expand their business across borders. According to Erramilli (2002: 231), entry strategies can be divided into equity and non-equity based. The basic difference between the two is of investment requirement and level of control. Tang & Liu (2011: 52-53) indicates that in equity-based strategies international firms either partially or wholly own one of the local firms. It includes joint ventures, FDI, Greenfield investments and wholly owned subsidiaries. As it appears from the name, in non-equity based strategies equity investment is not required. It includes Contractual Agreements (Licensing, strategic alliances) and exports (direct and indirect). Market entry strategies can be categorized as