Daloon Econoic Analysis And Swot Analysis

714 words - 3 pages

We knowthat, an international market entry mode is to create the possibility by arranging company's products, technology, human skills,management or other resources to enter into a foreign country. He regards that entry modes help companies to determine goals, resources and policy in order to channel their international activities toward a sustainable international expansion.When a firm is going to explore a foreign market, the choice of the bestmode of entry will arise in the firm's expansion strategy. There are sixessentially different entry modes, generally named as exporting, turnkey projects, licensing, franchising, joint venture with a host country firm, and setting up a wholly-owned subsidiary in the host country. All of themhave their advantages for the firm to explore as well as disadvantages which must be considered by the firm's top management. In other words,the managers should make the choice carefully because it directly affects whether the firm will succeed or not in its foreign expansion. Regardingthe choice of entry for a service company, licensing, franchising, joint-venture with a host country firm or setting up a wholly-owned subsidiaryare more suitable for these types of firmsthe size of a firm decides its entry mode. The bigger the firm is, the ability to control business is higher..caffe can be a large firm but mr Wong is going to open a small college caffe. With its few assets and some years of international experience. Hence, this two factor has made Mr Wong entry modes more on the intermediate and hierarcharic entry modes. and it belongs to a soft industry, the best way to enter foreign market is licensing or contract manufacturing In general, companies decide to begin franchising for one of three reasons: lack of money, people or time.MR Wong think that the primary barrier to expansion that today's entrepreneur faces is lack of capital. And franchising allows companies to expand without the risk of debt or the cost of equity. Since franchisees provide the initial investment at the unit level, franchising allows for expansion with minimal capital investment on the part of the franchisor. In addition, since it's the franchisee, and not the franchisor, who signs the lease and...

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