Before a company decides to enter a new market, it must decide what type operation it needs there. Once it has become established, further decisions must made in order to develop and consolidate. These decisions must be based on company's experience and capabilities, as well as on the strategic appeal of differ industrial sectors or countries.
An important decision is whether to enter a market alone, by setting up a ni operation or acquiring an existing business, or through a partnership (joint ventu licensing or franchising agreement).
Countries in Asia Pacific command different entry strategies:
Platform countries such as Singapore or Hong Kong can be used as bases at the entry stage for gathering inteffigence and initiating contacts; later they can be regional hubs. Medium-sized companies new to the region can establish listening posts in these cities.
In emerging countries such as Vietnam, Myanmar or Cambodia, it may be a good idea to set up a presence through a local distributor and a representative office; these wifi build the relationships needed to set up either a direct local operation or a joint venture.
In growth countries such as China and the ASEAN 5, Western companies should expand quickly to take advantage of the opportunities offered by rapid economic development.
In maturing and established countries such as Korea, Taiwan and Japan, a significant economic infrastructure is already in place; so are local and international competitors. The challenge is to build the operational capabilities needed to catch up with these competitors through either a joint venture, an acquisition or a large investment.
Choosing an entry mode and a development model : Resource based and Market based article from Resource Management Catagory Choosing an entry mode and a development model
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