Firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode. The options available to a firm include exporting,  

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ii summary entry mode selection of multinational enterprises entering high risk countries in sub-saharan-africa by sunel van coller supervisor: dr a.j. vögel

The entry mode that is found to be the best for Arla to enter into the market is export. Export is considered effective because it has very low risk and does not require substantial funds. View 2004-05-01 Identifying Factors Influencing Entry Mode Selection in Food Industry of Small and Medium-sized Enterprises (SMEs) in Iran Mahdi Haghighi Kaffash 1, Maryam Haghighikhah & Hamidreza Kordlouie2 1 Business Department, Faculty of Accounting and Management, Allame Tabatabaei University, Tehran, Iran In the associated paper “Selecting overseas markets and entry modes: two decision processes or one?”, it was proposed that market selection and market entry mode selection be looked upon as two aspects of one decision process. Faced with the entrant's entry, the manufacturer has managed to offer a value-added service to add to its product's value at a cost. We investigate the entrant's optimal entry mode when the manufacturer offers profit-sharing contracts to the retailer and when it does not, and discuss the impact of the potential invader's entry on the incumbent firms' performances.

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Entry mode selection

Article.

Entry mode selection

Selection of an optimal entry mode strategy is very important because it is very difficult to change or correct and have a long-term impact on the firm’s foreign operation (Pedersen, Petersen, & Benito, 2002). Actually, it is very difficult for a firm to serve in the market on a permanent basis without a well formulated entry strategy. Ranbaxy has been chosen entry mode as 'acquisition' for USA and European market basically to overcome made-in-India image, credibility issues and quality concern. Furthermore, Ranbaxy offered their product and services more confidently as a guarantor of quality and safety standards due to acquisition strategy (Dixit & Yadab, 2008). instance an insufficient or wrong entry mode selection can decrease opportunities and limit important choice for the firm and could lead to high financial loss as well as lose control on overseas market. The purpose of research study is to provide a deep and better understanding of the factors those effecting SME´s selection of market entry mode. If we look at the many variables at play we can understand that each firm factor will induce the adoption of one of the three modes of entry, depending on: the product; the firm’s internal characteristics; the desired mode of entry; the nature of the transaction; external political and social factors factors Selecting the market (s) to enter.
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Lu and Beamish (2001) indicate that choosing the right entry mode can have significant performance implications for SMEs. Erramilli and D'Souza (1993) suggest that SMEs differ from their larger competitors, and their entry mode choice may also differ. In addition to selecting the right mode of entry, the timing of entry is critical. Just as many companies have overestimated market potential abroad and underestimated the time and effort needed to create a real market presence, so have they justified their overseas’ expansion on the grounds of an urgent need to participate in the market early.

Market Entry Mode Selection: The Experience of Small Firms in Hong Kong Investing in China. Asia Pacific Business Review: Vol. 8, No. 1, pp. 19-41. Agarwal and Ramaswami (1992) indicate that the foreign entry mode choice constitutes a commitment of four factors: resources, control, risk and profits.
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Entry mode selection




When the criterion used in market entry mode selection is sales or market share maximization, market entry modes which are believed to be most likely to deliver  

DOI: 10.5772/intechopen.95288 In the associated paper “Selecting overseas markets and entry modes: two decision processes or one?”, it was proposed that market selection and market entry mode selection be looked upon as two aspects of one decision process. International Business, International Market Entry Strategy, Entry Mode Selection, E-Commerce An Additive Model of Entry Mode Choice IB literature has grown extensively over the past decades, especially witnessing a proliferation of theoretical models since studies began looking at emerging national multinational enterprises (EMNE). Selection of an optimal entry mode strategy is very important because it is very difficult to change or correct and have a long-term impact on the firm’s foreign operation (Pedersen, Petersen, & Benito, 2002).