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Market Entry Strategies, 2nd Edition

Book Description

This textbook discusses the most important theories of internationalization, including Product Life-Cycle, Internalization, Location, Eclectic Paradigm, Uppsala, Network, and International New Venture concepts. These models are grounded to a considerable extent in the Transaction Cost Theory and the Resource-Based View as explained and illustrated in the book.

Relevant market entry strategies, such as franchising, contract manufacturing, joint ventures, and others are explained and categorized in light of crucial determinants of international business decision making: hierarchical control of operations, the firm’s proximity to the foreign market, the investment risk, and the factor of time.

What makes this textbook novel and unique?

  • Its framework combines theories and market entry strategies: each topic
    is applied to authoritative, real-life business case studies.
  • Complex issues are explained in a manner that results in understanding.
  • Various illustrations and tables help the reader comprehend the point being discussed.
  • The case study focus on Asian firms delivers interesting insights into modern high-technology industries and changing global business dynamics.

Market Entry Strategies serves as a vital source for internationally oriented bachelor, master, and MBA programs with strategy, marketing, and management lecture modules. Consequently, this publication is highly recommended for students and scholars; but it is also useful for business practitioners seeking to gain competitive advantages in international business.

About the Author

Mario Glowik teaches Bachelor, MBA and Master courses in Strategic management, International management, Strategic management in China and Europe, and International and Asian business at Berlin School of Economics and Law in Berlin. Find out more about Professor Glowik and the second edition of his Textbook Market Entry Strategies on Youtube!

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright Page
  4. Table of Contents
  5. Introduction
  6. 1 How to Combine Theory and Business Practice?
    1. 1.1 About Theory
    2. 1.2 Qualitative, Quantitative, and Mixed Research Methods
    3. 1.3 Cases Studies: Why, How, and What?
    4. 1.4 The Case Study of Panasonic: Do You Believe in its Future Business?
      1. 1.4.1 Company background
      2. 1.4.2 The market at the beginning of the 21st century
      3. 1.4.3 What comes next?
      4. Bibliography
  7. 2 Internationalization Theories
    1. 2.1 The International Product Life-Cycle Theory
      1. 2.1.1 Market entry according to the product life-cycle phase
      2. 2.1.2 Review of Vernon’s model
    2. 2.2 Location Concepts
      1. 2.2.1 Historical foundations
      2. 2.2.2 Location factors
        1. The macro environment
        2. The industry environment
        3. The case study of Sharp (Japan): Leader in liquid crystal display technology – and then?
          1. Company origins
          2. Technological pioneer in LCD technology
          3. The development of Sharp’s operations in Europe
      3. 2.2.3 The Diamond Model
      4. 2.2.4 Review of the location concepts
      5. 2.2.5 Case study: Market entry of Asian high-technology firms in Europe
        1. Location-specific macro analysis
        2. Business activities of high-tech firms from the Far East: A country perspective
    3. 2.3 The Internalization Theory
      1. 2.3.1 The issue of transaction costs
      2. 2.3.2 Emergence of multinational enterprises
      3. 2.3.3 Review of the internalization theory
    4. 2.4 The Eclectic Paradigm
      1. 2.4.1 Advantage categories
      2. 2.4.2 Market entry strategy according to advantage categories
      3. 2.4.3 Review of the Eclectic Paradigm
    5. 2.5 The Uppsala Model of Internationalization
      1. 2.5.1 Incremental market entry through accumulated knowledge
      2. 2.5.2 Review of the Uppsala model
    6. 2.6 Network Theory of Internationalization
      1. 2.6.1 Inter-organizational relationships
        1. The impact of the resource-based view
        2. Resources and dynamic capabilities
        3. The case study of Sony: Resources reshuffled – dynamic capabilities disappeared?
          1. Company origins (the period from 1945 until the 1980s)
          2. Diversification towards movie and entertainment
          3. Loss of core competencies in electronics
          4. Access to LCD technology through inter-organizational relationships
          5. Market entry strategies for Europe as part of a global value chain
          6. How about the future?
        4. The approach of Johanson and Mattsson
        5. The concept of Johanson and Vahlne
        6. Review of inter-organizational network positioning approach
        7. The case study of Haier (China) – Learning by imitation
      2. 2.6.2 Interpersonal relationships approach
        1. Early internationalization of the firm
        2. The dimension of time
        3. Towards a conceptualized model typology of international new ventures and born global firms
        4. The phenomenon of the ‘born again global’
        5. Individual and corporate international entrepreneurship
        6. Review of the international new venture, born global, and entrepreneurial concepts
        7. The case of Xiaomi: An early internationalizer – made in China
    7. 2.7 Summary of Internationalization Theories
      1. Bibliography
  8. 3 Market Entry Strategies
    1. 3.1 About Strategy and Internationalization
    2. 3.2 Case Study: The Global Strategy Concept of Samsung
      1. 3.2.1 Samsung management philosophy – history and today
      2. 3.2.2 Strategic relationship building
      3. 3.2.3 Diversified organization
      4. 3.2.4 The strategy of vertical integration of Samsung Electronics
      5. 3.2.5 International business expansion
      6. 3.2.6 Product design, research, and development
    3. 3.3 Foreign Market Entry Strategies
      1. 3.3.1 Contractual modes of market entry
        1. Indirect and direct export
        2. Contract manufacturing
          1. How it works?
          2. The case study of Foxconn/Hon Hai Precision Industry Company (Taiwan)
        3. Licensing
        4. Franchising
        5. Management contracts
        6. Turnkey contracts
      2. 3.3.2 Cooperative modes of market entry
        1. Strategic alliances
        2. International joint ventures
        3. Case Study: International Joint Ventures of LG Electronics (South Korea) and Philips (The Netherlands)
          1. The partners’ situation before establishing their international joint ventures
          2. The foundation of LG.Philips LCD
          3. Philips reduces its stake in LG.Philips LCD
          4. The foundation of LG.Philips Displays
          5. LG.Philips Displays gets a new name
          6. What happened next to the international joint venture terminations?
      3. 3.3.3 Hierarchical modes of market entry
        1. Foreign direct investment
        2. The case study of Lenovo: Growth through acquisitions
    4. 3.4 Decision Determinants of an International Market Entry
      1. 3.4.1 Entry rapidity and proximity to the market
      2. 3.4.2 Degree of hierarchical control and financial risk
      3. 3.4.3 A two-step decision process approach towards an international market entry
        1. Step one – setting strategic priorities
        2. Step two – selection of the appropriate market entry mode
          1. Contracting modes (market mechanisms)
          2. Cooperation (hybrid forms of foreign market entry)
          3. Wholly owned subsidiary (hierarchical forms of foreign market entry)
    5. 3.5 Case Study: Market Entry Strategies of TCL (China)
      1. 3.5.1 About the company
      2. 3.5.2 TCL-Thomson Electronics (TTE) international joint venture
      3. 3.5.3 The gradual process towards the liquidation of TTE Europe
      4. 3.5.4 TCL and Alcatel international joint venture
      5. Bibliography
  9. Subject index