IBUS 370- Exam
Why Market Entry and Strategic Alliances? correct answers- The topic go together because:
-- In many cases, market entry involves cooperation... as in the Kirin-Brooklyn Brewery deal
Entry Strategy correct answers- Where?
- When?
- What Scale?
- How (Model)?
Entry Strategy: Where? correct answers- A firm involves in operations is a function of a number of
factors already covered in these course
- Firms make select locations to based upon opportunities to reduce costs: "internalization advantages"
Entry Strategy: When? correct answers- First Mover
- Lare Entrant
Entry Strategy: When?- First Mover; Advantages correct answers- First to establish a brand
- Build sales volume early, resulting in cost advantages
- Change to create switching costs
Entry Strategy: When?- First Mover; Disadvantages correct answers- Pioneering costs (learning and
educating)
- Host countries sometimes adjust regulations after an initial experience with foreign firms and new
products/ services
Entry Strategy: When?- Late Entrant; Advantages correct answersYou can learn and benefit from first
movers (lower pioneering costs)
, Entry Strategy: When?- Late Entrant; Disadvantages correct answers- Late to establish a brand
- More difficult to build sales volume
- May have to overcome switching costs created by competitors
Entry Strategy: What Scale? correct answers- Large-Scale Entry
- Small-Scale Entry
Entry Strategy: What Scale?- Large-Scale Entry; Advantages correct answers- Signals commitment to
govt., customers, suppliers, and local employees
- Create perceived barriers for competitors
- More likely to result in "first-mover advantages"
- Lack of flexibility may actually encourage success
Entry Strategy: What Scale?- Large-Scale Entry; Disadvantages correct answers- Difficult to back out
- Can tie up resources that could be used elsewhere
- Financial risks are greater
Entry Strategy: What Scale?- Small-Scale Entry; Advantages correct answers- Limits exposure while
learning about host market
- Options (i.e., the option to increase later)
- Experience gained may reduce risks of later investments into the market
Entry Strategy: What Scale?- Small-Scale Entry; Disadvantages correct answers- Difficult to achieve 'first-
mover" like advantages
- Easier for firms to reason their way out of a market without truly working towards success
- Does not necessarily signal commitment to host country stakeholders
Entry Strategy: How (Mode)? correct answers- Exporting
- Licensing
- Franchising
Why Market Entry and Strategic Alliances? correct answers- The topic go together because:
-- In many cases, market entry involves cooperation... as in the Kirin-Brooklyn Brewery deal
Entry Strategy correct answers- Where?
- When?
- What Scale?
- How (Model)?
Entry Strategy: Where? correct answers- A firm involves in operations is a function of a number of
factors already covered in these course
- Firms make select locations to based upon opportunities to reduce costs: "internalization advantages"
Entry Strategy: When? correct answers- First Mover
- Lare Entrant
Entry Strategy: When?- First Mover; Advantages correct answers- First to establish a brand
- Build sales volume early, resulting in cost advantages
- Change to create switching costs
Entry Strategy: When?- First Mover; Disadvantages correct answers- Pioneering costs (learning and
educating)
- Host countries sometimes adjust regulations after an initial experience with foreign firms and new
products/ services
Entry Strategy: When?- Late Entrant; Advantages correct answersYou can learn and benefit from first
movers (lower pioneering costs)
, Entry Strategy: When?- Late Entrant; Disadvantages correct answers- Late to establish a brand
- More difficult to build sales volume
- May have to overcome switching costs created by competitors
Entry Strategy: What Scale? correct answers- Large-Scale Entry
- Small-Scale Entry
Entry Strategy: What Scale?- Large-Scale Entry; Advantages correct answers- Signals commitment to
govt., customers, suppliers, and local employees
- Create perceived barriers for competitors
- More likely to result in "first-mover advantages"
- Lack of flexibility may actually encourage success
Entry Strategy: What Scale?- Large-Scale Entry; Disadvantages correct answers- Difficult to back out
- Can tie up resources that could be used elsewhere
- Financial risks are greater
Entry Strategy: What Scale?- Small-Scale Entry; Advantages correct answers- Limits exposure while
learning about host market
- Options (i.e., the option to increase later)
- Experience gained may reduce risks of later investments into the market
Entry Strategy: What Scale?- Small-Scale Entry; Disadvantages correct answers- Difficult to achieve 'first-
mover" like advantages
- Easier for firms to reason their way out of a market without truly working towards success
- Does not necessarily signal commitment to host country stakeholders
Entry Strategy: How (Mode)? correct answers- Exporting
- Licensing
- Franchising
