Beyond the Choice of Entry Mode - A case study of Micropower

Seminar paper from the year 2002 in the subject Business economics - Offline Marketing and Online Marketing grade: Passed with Distinction (10) Växjö University (School of Management and Economics) course: International Marketing Strategies language: English abstract: Any company that starts to do business in foreign markets goes through a processwhich is triggered by proactive and/or reactive factors. This process starts generally byfinding and selecting a target market decisions which frequently are made on the basisof marketing research. An important part of the research is to locate the market entrybarriers when entering in the foreign market. With this information the company has todevelop a strategy to enter the market. Within the strategy formulation the company alsohas to choose an appropriate mode of entry. There are several different market entrymodes and no one is the correct one since they all have advantages as well asdisadvantages. They are however more or less suitable depending on the company itsresources its products etc. (Czinkota 1993 p. 329-331 Johansson 1997 p. 208 ffTaylor C. 2000).However a company's internationalization process does not stop here. As the companygains experience from its current activities it may want to make additional investmentsin the market due to factors that could be described as internal or external. Thesefactors could also motivate a change of entry mode. Extreme views even say that oncethe internationalization process has started it will tend to proceed regardless of whetherstrategic decisions are made in that direction or not (Randoy T. 2002 Wheeler 1996).Although a lot of theory has been written on internationalization and on the choice ofentry mode there is little to be found on the internationalization process and particularlyon the changing of entry mode.To realize that the company could find itself in such a situation where they need todevelop in the foreign mar