Page 174 - GLOBAL STRATEGIC MARKETING

End of Unit Summary

This unit discussed the process of internationalisation, which starts from
very low engagement leading to high engagement overseas in relation to

market entry decisions. Therefore, market entry modes were the main
focus of this unit to include direct or indirect exporting, co-operation

strategies and foreign direct investment. It is important to realise that
overseas market entry modes are characterised by different degrees of
risk, such as control, commitment, resources and the return on investment

that they promise. The previous discussion investigated the selection of
entry modes, which depends on the degree of risk, commitment,

resources, control and return on investment. The unit also discussed the
three basic approaches to entry mode selection, leading to a study of the
degree of international marketing involvement. It seems logical to define

what entry modes are after defining all the elements related to the main
variable, including the fact that the types of entry mode require different

levels of resource commitment and control. The literature suggests that
the entry mode is characterised by the level of control (high, medium, low)
and the resource commitment. The unit also looks at the degree of

involvement, which is determined by the complexities of the entry mode.