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• Technology: Companies must decide whether to operate with
manual or automatic systems in relation to local factor costs, product

design and development operations. On the other hand, for small and
newly internationalising companies, the internationalisation decision
itself may be traumatic and all-consuming in terms of times, energy

and resources.

• Entry modes and development methods: The choice of entry
modes is an important issue in international marketing strategy. The

choice of the company’s entry modes will have major influence upon
its success overseas. The common belief is that foreign direct

investment is the best way to outline a market share. Other options
are exporting and licensing, which will not give the company the
option of controlling a competitor’s reaction or becoming involved in

quick investment.

According to Young et al. (1989, p. 10) all these elements should be
incorporated into international marketing plans, setting forward the

company’s objectives and aims to direct its foreign activities. Managerial
attitudes reflecting the desire, drive and enthusiasm about global

marketing activities can be a great motivator. Furthermore, expansion can
provide reasons for international travel. Having said that, managerial travel
and the desire to go international usually comes from entrepreneurial

motivation (Hollensen, 2001).

6.4 Market entry modes

Market entry may be affected in a variety of ways. These include direct or
indirect exporting, licensing, joint ventures and strategic alliances and

foreign direct investment such as wholly owned subsidiaries, mergers and
acquisitions (Doole and Lowe, 2008 – See Figure 6.1.). The choice of entry
mode depends on factors such as the need for ownership, involvement,

risk and control, the level of financial commitment, the importance of
market proximity, the time frame involved, and the nature of the product or

service. In all cases the mode of entry should be appropriate for the
company and country concerned, taking account of the company’s
objectives and strengths and weakness and the country’s cultural and