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1. foreign licensing

2.sub-contracting

3. ????????

4. PROFIT

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Explain how the flow of transactions and the flow of the physical product relate to foreign market entry mode?

The flow of transactions and the flow of the physical product are interconnected in determining the most suitable foreign market entry mode. For instance, in modes like exporting, the transaction flow occurs primarily from the home country to the foreign market, while the physical product follows the same route. Conversely, in modes such as joint ventures or local production, both the transaction and product flows can become more complex, often involving local sourcing and distribution. The choice of entry mode thus hinges on balancing transaction efficiency and logistical feasibility in the target market.


What is an entry decision?

An entry decision refers to the strategic choice made by a business regarding how and when to enter a new market or industry. This involves evaluating various factors such as market potential, competition, entry modes (like joint ventures or direct investment), and regulatory considerations. The decision is crucial as it impacts the company's growth, resource allocation, and overall market strategy. Ultimately, a well-informed entry decision can lead to successful market penetration and competitive advantage.


What is market entry?

Market entry refers to the strategy or process through which a company begins to sell its products or services in a new market or geographical area. This involves assessing market conditions, understanding local regulations, and identifying potential customers. Companies may choose various entry modes, such as direct exporting, franchising, joint ventures, or establishing a local subsidiary, depending on their resources and goals. Successful market entry requires a thorough analysis of competition, consumer behavior, and cultural factors to ensure a sustainable presence.


What entry modes is blockbuster using to penetrate foreign market?

Blockbuster utilized various entry modes to penetrate foreign markets, primarily through franchising and joint ventures. By franchising, they allowed local entrepreneurs to operate Blockbuster stores, leveraging local market knowledge while minimizing capital risk. In some cases, they formed joint ventures with local companies to share resources and expertise, facilitating a smoother entry into diverse cultural and regulatory environments. These strategies enabled Blockbuster to expand its global presence effectively while adapting to local market dynamics.


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Why did Starbucks approach markets using so many different entry modes?

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