Pressures for local responsiveness crop up due to differences in consumers’ tastes and preferences, differences in infrastructure, differences in distribution channels, and the demands of…

Each of these strategies has its advantages and disadvantages. International Strategy Companies that pursue an international strategy create value by transferring valuable skills and products to…

There are five main modes of entering a foreign market: exporting, licensing, franchising, entering into a joint venture with a host country company, and setting…

Licensing is an arrangement by which a foreign licensee buys the rights to produce a company’s product in the licensee’s country for a negotiated fee….

Franchising is a strategy employed mainly by service companies. The advantages of franchising are similar to those of licensing. The franchiser does not bear the…

Joint venture with a foreign partner to enter foreign markets has been the vogue in recent times. A 50:50 venture is quite common, in which…

A wholly owned subsidiary offers three advantages.  First, when a company’s competitive advantage is based on its technological superiority, a wholly owned subsidiary makes sense,…

International expansion represents a way of earning greater returns for companies by transferring the skills and product offerings derived from their unique competencies to markets…

Unique Competencies: are defined as unique strengths that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness. Location Advantages: are those that…

The dynamics of an industry plays a critical role in the formulation of a firm’s strategy. It can increase or decrease opportunities or a threat…