The five most common modes of international market entry are as follows: exporting, licensing and franchising, acquisition, partnering (or strategic alliance) and establishing a new subsidiary. Each entry mode has advantages and disadvantages, and by understanding these, organizations can avoid the high costs of establishing operations in a new international market.
Respond to the following prompts:
- Research one organization (CANNOT BE MCDONALDS) that has expanded into an international market (crosses national borders) and outline how this organization entered this new market.
- Identify the specific mode of entry that the organization used.
- What were the organizational advantages or disadvantages of using this mode?
- Has this organization been successful?