Date May 31, 2011 Course Name: Masters Thesis in Marketing, 4FE02E, 15 hp, Spring 2011 LinnaeusUniversity,Växjö,Sweden Program Masters in Marketing Authors: Rubaiyat Raihan 840812 Shah Azeem 761210 Tutor: Engelbert Weiss Examiner: Sarah Philipson Title of the Paper: The specificities of market entry strategies into a developing country Problem Statement: “What are the specificities of market entry strategies into a developing country?” Purpose: To understand the market entry strategy of high tech product like energy efficiency light for the developing country taking into consideration the aspects discussed under problem discussion. Delimitation: In our thesis paper, we are only discussed about the energy saving industry and more specific the light manufactures. Also, our paper is discussed only about the market entry strategies and entry barrier, not to measure the effect of it. Methodology: The project is based on primary data retrieved in connection with the theoretical framework. A qualitative approach of research and questionnaire has been considered to reach the desirable result. Conclusion: After investigating the factors of energy efficiency light industry, we can conclude that it will be a good idea for a company to expand their business in developing country as the industry and the countries have a lot of potential to offer. An Investment entry mode (Joint Venture) has been suggested. Suggestion for Further Research: This research was focused on market entry strategy and entry barriers of energy efficiency light manufacturer, not the effect of entry barriers. Therefore, the next step should be to make in order to examine the effect of the barriers discussed in this research. Key Words: International market entry strategies, energy efficiency light industry, entry modes and entry barriers.

Globalization, rising affluence in developing and transitional economies, improved infrastructure, and advancements in communication and information technologies have increased the opportunities for marketing services beyond borders. For the last decade African economies has been growing which has created enormous opportunity for international companies. However, foreign companies have been slow to enter into African markets. The purpose of this research is to identify important perception of barriers and factors that affect market entry decision in Africa specifically in Ethiopia and Egypt.This research is based on a qualitative case study and data is collected from primary and secondary data. The primary data are collected from four Swedish micro and small companies. The secondary data collection is based on website, and published material from accredited government, such as UN, Ethiopian investment agency and Swedish government.The major market entry barriers and factors are determined through analysis of these data. The major barriers are cost advantages incumbents, product differentiation, capital requirement, switching cost, access of distribution channel, government policy. The factors are market attractiveness, cultural distance, uncertainty, legal environment, and competition. Market entry decision is dependent on high influential perception of market entry barriers. From this research the important influential perception of barriers and factors that affect market entry decision in Ethiopia and Egypt are government policy, cultural difference, uncertainty, and legal environment. Cost advantage and switching cost are the low influential perception of barriers.

Internet and mobile wireless as emerging content distribution platforms have not only redefined the traditional media market, but also influenced the business strategies of the transnational media corporations (TNMC) that are expanding their operations into the ¡§new-media¡¨ system in another country. The purpose of this study is to explore how global media move from the traditional television distribution channel to the Internet and mobile wireless platform in the country of China and what strategic patterns of alliance they engage to obtain sustainable competitive advantage. Applying a resource-based view (RBV) framework of analyzing strategy and employing a case study approach, this study investigates the formation and evolution of strategic alliances for the U.S.-based TNMCS in the marketplace of China and discusses how their resources were aligned with their local counterparts¡¦ resources in marketing their content products. The alliance involving Time Warner, News Corporation, Disney, and Viacom were examined. Cross-case analysis identified six alliance patterns, including the importance of content-distribution resource alignment, the acquisition of local knowledge resources, the strategic alliances between TNMCs, the decrease of equity-based alliances, the complementary role of property and knowledge resources, and the necessity of uniting resources that enable the local responsiveness of video-related products.

Two important issues regarding international market entry strategy remain largely unexplored: international launch time window (the elapsed time between product launch in the home country and launch in the focal country) and country sequence. First, I investigate the factors that drive international launch time window and its impact on the performance of new products in foreign markets. The results show that launch time window is positively associated with word of mouth, but negatively related to prelaunch advertising efforts and foreign demand potential. Second, I examine the determinants of the sequence of countries in which firms introduce new products and its impact on performance in foreign countries. The findings include that a country‘s order in the international launch sequence of a new product affects the product‘s performance in that country. Country order is negatively related to country revenues. A country‘s cultural distance (economic openness) is positively (negatively) associated with its order in the sequence. I also find that there is cross-country spillover effect - lagged revenues from other countries and lagged marketing efforts in the home country are positively related to a new product‘s revenues in the focal foreign country. The more culturally sensitive a product, the earlier culturally closer countries are in the launch sequence for that product. Based on the cross-country performance spillover effects, I recommend a launch sequence that can maximize overall performance in foreign markets.

<p>Businesses today are constantly on the lookout for new investment opportunities. Often,</p><p>they have to move away from their home market and enter new countries in order to</p><p>continue to grow. One question that is sometimes omitted when planning such moves is that</p><p>of corruption. Especially when moving into transition economies, the issue of corruption</p><p>can be an obscure and complex one, on which little research has been made to date. Russia</p><p>is one such economy, with a huge investment potential, but very unclear rules about how</p><p>business is and should be conducted. It would be interesting to see to what extent</p><p>corruption in Russia has affected Swedish companies’ entry strategies in the Russian market.</p><p>The method chosen for the purpose of this thesis was to conduct a survey of 20 Swedish</p><p>firms currently present in Russia. We also conducted interviews with 3 experts in the field</p><p>of Russian business, and one representative of a Swedish firm considering expanding their</p><p>operations in Russia. This combination of quantitative and qualitative methods would allow</p><p>us to look at things from different perspectives and get a better view of the state of</p><p>corruption in Russia. The interviews were in some cases conducted in person, allowing for a</p><p>broader and less formal discussion of the topic, helping the authors gain more insight and</p><p>generate new ideas to be used in the paper.</p><p>The authors found that Swedish companies operating in Russia usually attribute little</p><p>importance to the issue of corruption during the planning stages of the market penetration</p><p>strategy. Many of these firms did encounter corruption at later stages of market</p><p>penetration, and were forced to rethink their strategies accordingly, showing that corruption affect</p><p>entry strategies to a great extent. It was concluded that the most appropriate method for</p><p>Swedish firms to enter the Russian market is through fully-owned subsidiaries, with the</p><p>assistance of local consulting agencies, which provide help when dealing with those areas</p><p>where corruption is most likely to exist.</p>

<p>Internationalisation is today part of every firm’s reality and impossible to deny. Researchers have developed several models and theories concerning this topic describing firms internationalisation in terms of innovation models, behavioural-, sequential-, and learning processes. However, there is a lack of export research for small firms that are practically oriented towards a specific market. Small firms often lack the resources and time to investigate new markets. We have seen an empirically driven need for research about entry strategies due to a request from a Swedish design company.</p><p>The Japanese economy is the second largest in the world with a population interested in consumer goods such as design products and services. During the last years, the fascination for western cultures, Swedish design and lifestyle has grown. Due to this, it is interesting for small Swedish design firms to examine the Japanese market.</p><p>The purpose of the thesis is to empirically examine small Swedish design firms’ internationalisation process to Japan. Appropriate export entry strategies will be evaluated in order to find suitable suggestions for other design firms with similar characteristics that wish to expand to Japan.</p><p>To fulfil this purpose, a qualitative method with an orientation towards induction was used. Primary data was gathered by interviews with five Swedish design firms with experiences from Japanese market penetration. To approach the Japanese market and entry strategies from another perspective, complementary information and interviews were conducted with for example the manager at Swedish Trade Council Japan, and the founder of the agent association Japan Porten.</p><p>Internationalisation theories, export entry strategies, and theory about the Japanese market have also been presented. As a result of the theory chapter, research questions rose concerning what international entry strategy this type of companies should use. What entry mode and distribution channels are most appropriate, how should the marketing plan be composed and what other things should to be considered before a Japanese market entry? A cross-analysis was then made contrasting and comparing theory and empirical data in order to reach conclusions.</p><p>The conclusion gives suggestions about what steps small Swedish design firms should take after they have decided to enter Japan. We have found evidence during this research process that suggests them to use a direct entry mode, contracting an agent or distributor. To get in contact with business partners, the companies can participate in trade fairs or events, promote themselves through magazines, and take help from the Swedish Trade Council. Products should be slightly adjusted to the Japanese market, especially in terms of physical size and packaging materials that has to be flawless and professional. The price can be set higher than in Sweden and the company should position themselves as high quality producers. Swedish design, originality, and handicraft tradition should be promoted. Further, the Japanese business culture has to be respected, where negotiation manners, honesty and politeness should be considered. The companies also have to bear in mind that things take time in Japan and it is important to develop personal life-lasting relationships.</p>

Multimarket competition has become a substantial part of the modern economy. As such, it has drawn the attention of academics in both economics and strategy fields. Many studies have found empirical evidence of mutual forbearance in several industries, but despite its importance, its behavioral roots have not been explored. In my dissertation I integrate the reality of boundedly-rational decision makers into the mutual forbearance hypothesis. I apply an outgrowth of the behavioral theory of the firm – the shifting focus model of risk taking – to the study of competitive behavior. I propose a behavioral model of multimarket competition that focuses on corporate strategic decisions - market entry and exit decisions, regardless of entry mode (e.g. acquisitions) or exit mode (e.g. divestitures). This approach provides a granular view of changes in the business scope of the firms in terms of product and geographic markets served. I test my hypotheses in the U.S. property liability insurance industry over a 12-year period (1998-2008). I argue that firms follow the mutual forbearance logic as long as their performance goals are satisfied. However, under conditions of adversity, firms shift attention to recovering from the performance shortfall and their actions deviate from the mutual forbearance predictions. This dissertation shows that underperforming firms with abundant slack take longer to forbear, and underperforming firms with limited slack start forbearing sooner, as predicted. By bridging behavioral and competitive perspectives to the study of market entry and exit decisions, I underscore the value of cross-fertilization in strategy research.

Purpose: This paper aims to examine the association between two market environment factors (industry and nature of market) during the usage of the slogan as part of the corporate visual identity (CVI) of a multinational firm in the domestic market and adjustments of the slogan when firms enter a foreign market. Moreover, this thesis tries to broaden the knowledge about the slogan as an extrinsic brand of origin (BO) cue (in terms of the language). Methodology &amp; Approach: Applying a deductive approach, a mixed method research has been chosen as research strategy, combining methods of both quantitative (content analysis via websites, N=329) and qualitative (semi-structured interviews, N=3) research strategies. Findings: Less than half of the observed sample (42.6%) uses a slogan as a tool for marketing and branding. The industry is significantly associated with the decision whether a company should use a slogan in their CVI. Furthermore, the factors industry and the market (B2B or B2C) are significantly associated with the decision of a slogan adjustment when firms internationalize. Besides that, the concept of country of origin (COO) does not play a significant role in the context of a slogan strategy as many firms mainly adjust the slogan to the foreign language when entering the foreign market. Qualitative interviews revealed that the COO concept depends on the country image and the industry. Moreover, a great share of English slogans in the primal state was found during the content analysis, which have been identified as more unlikely to be adjusted in foreign markets. Research limitations: The amount of the investigated companies as well as taking only one foreign market for each of the companies into consideration limited the sample. Moreover this observation was taken at a present point in time, neglecting possible causes and developments over time. Managerial implications: The findings demonstrated that it is crucial for managers in the context of the slogan to consider the market environments (i.e. industry, nature of market) when they enter a foreign market and when they create one in the domestic market. English slogans might be able to be transferred unchanged to the foreign market. In essence, some industries could trigger benefits by showing their origins in the slogan via their native language. Originality/value: As one of the first papers, the concept of CVI and COO has been combined, focusing on the slogan as an extrinsic cue for customers. Analyzing global companies (N=329) and conducting 3 in-depth interviews as a follow-up, several factors as associations to the usage of slogans and possible adjustments when entering a foreign market have been investigated.

Background: Now-a-days, the forces of globalization derive firms to go to international market. When a firm thinks to expand its business outside of the home market, it needs to explore the form of operation through which it will enter into the foreign market. International entry mode research deals with this matter. (Brouthers et.al.2007). 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, &amp; 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. (Pehrsson A. 2008). Market entry mode strategies are influenced by both firm and country level factors and a firm must take into consideration these factors in choosing an appropriate entry mode. Purpose: The basic purpose is to gain a deep knowledge about the critical factors in selecting an optimal international market entry mode strategy to enter into an emerging market. The minor purpose is to justify the suitability of the target market. Methodology: Due to the dependency on subjective interpretation of text or other visual material and small sample was used to investigate the specific phenomena, qualitative method has been practised in this research process. Secondary data has been mainly collected from e-sources, and primary data has been collected through phone interview with the three foreign mobile telecom companies in Bangladesh. Findings: Bangladesh mobile telecommunication market is still attractive for the foreign entrants and the optimal entry mode strategy is joint venture to enter into the moderately attractive industry. Implications: The study has showed that international entry mode strategy is affected by various organizational, economical, Institutional, and sociological factors (categorized as country and firm level factors). This research has also provided relevant information to the potential foreign firms about which country and firm level factors should consider in formulating a well entry mode strategy in perspective of an emerging market.

In the last decades it has been argued whether psychic distances have lost their importance on the world markets. The access to information through the internet may have reduced them and made them more understandable, but it has also increased the overall world trades leading to more diversity and therefore to more different market segments that have to be considered. This contrary statements are investigated in this master thesis and further evaluates the current importance of psychic distances in relation to the perception of the managers towards it. Therefore it gives an insight into how psychic distances affect the management of a web- based companies called Compare AG. The progress of this work mirrors this discussion along with the development process of the company. It will show how it went from a unexperienced firm, which merely copied their concept to another market expecting it to work, to a company that adapts to the foreign markets and has specialists for every country to cope with any kind of market changes illustrating both opinions on how important psychic distances still are today especially for internet-operating companies.