1. Home
  2. Topic
  3. Business
  4. Market Entry Strategy
  5. Market Entry Strategy 2010 Saw Essay

Market Entry Strategy 2010 Saw Essay

Download This Paper Download this Essay in word format (.docx)

Excerpt from Essay :

N.D.P.16).

Indirect Investment Options

The indirect investment option avails itself of two avenues: licensing agreements or branch or representative offices. "Foreign companies with patents, trademarks, or other intellectual property are free to enter into licensing agreements with local companies. Licensing has the advantage of limiting a foreign company's exposure, since the company need not set up an office or a joint venture" (Price Waterhouse Coopers. N.D.P.18). The branch or representative office "remains part of the parent company and is therefore not entitled to the rights and protections accorded to Chinese legal entities; however, it also must appoint a Chinese legal representative" (Price Waterhouse Coopers. N.D.P.18).

Pros and Cons of Direct v. Indirect

Of the direct and indirect investment options there are positives and negatives. The direct investment option allows the foreign entity to immerse themselves into the political, regulatory, and business framework of China's economic powerhouse. One of the most important distinguishing factors evident in the models is that of the profit role. The direct option allows for the foreign investor to build and develop their business with control over the final profit decisions. The direct option is far more capital intensive which can deter smaller organizations however, the rewards of autonomy and control are counterbalancing positives. The indirect investment option licenser "has less control over how its product is priced, marketed, and distributed" (Price Waterhouse Coopers. N.D.P.18). The branch or representative office "allows a foreign investor to enter the Chinese market with little initial investment, but the investor is prohibited from direct profit" (Price Waterhouse Coopers. N.D.P.18). The distinct advantage however, is that business can expend far less capital then they would allocate for a full direct investment.

For City College Norwich the choice becomes one of capital, time, and their long-term goals for Chinese operations. As an institution of higher education the City College mission is to provide students with a broad curriculum which engenders a global perspective on cooperative engagement and students and faculty making a difference. Because the profit motive is not intrinsic for City College, the...
...Yet, in analyzing the influencing aspects of China's political, economic, and cultural norms on City College's strategy, the direct investment option provides a more effective analysis tool.

Identify the Key Relevant Aspects of the Government / Political, Legal, and Economic Environment that Influences Strategy.

When discussing these relevant aspects the primary consideration is how they impact strategy from an obturative and opportunities basis, i.e. what are the challenges and possibilities which they represent to Norwich College? Government/Political forces are perhaps the strongest obstacles to entering the Chinese market. "Local government officials can be critical to the success of a foreign-invested enterprise (FIE)" (Price Waterhouse Coopers. N.D.P.13). In China government is a ubiquitous presence which is at the foundation of all business relationships. While government can be intrusive in the amounts and types of regulatory oversight," the best way to maintain good relations with Chinese government officials is to work with them. Although some Chinese laws can be burdensome and compliance expensive, a company that diligently follows all the rules will be in better standing with the government" (Price Waterhouse Coopers. N.D.P.13).

Legal Factors

"Probably the most widely publicized obstacle to setting up operations in China is the difference in attitudes toward intellectual property. The Chinese government has signed treaties, passed legislation, and created special courts to safeguard IP rights. Nevertheless, reverse engineering, counterfeiting, theft, and other forms of IP misappropriation remain widespread" (Price Waterhouse Coopers. N.D.P.10).

Specifically what is referred to here is the legal challenge which an organization can face in China. Because property rights are not as well protected as in the fully developed economies, there can be considerable pressure placed on firms which find themselves caught in intellectual property battles. Over time the growth of china's economy will require greater legal protection for individuals and firms yet, "it is not just foreign investors who need protection from capricious legal interpretations; Chinese companies, too, will benefit from the relative certainty of a consistent, rule-based order throughout the country" (Price Waterhouse Coopers. N.D.P.10).

Economic Factors

The economics of China
Read Full Essay

Cite This Essay:

"Market Entry Strategy 2010 Saw" (2011, February 28) Retrieved February 27, 2021, from
https://www.paperdue.com/essay/market-entry-strategy-2010-saw-4364

"Market Entry Strategy 2010 Saw" 28 February 2011. Web.27 February. 2021. <
https://www.paperdue.com/essay/market-entry-strategy-2010-saw-4364>

"Market Entry Strategy 2010 Saw", 28 February 2011, Accessed.27 February. 2021,
https://www.paperdue.com/essay/market-entry-strategy-2010-saw-4364

Related Documents:

  • Contrarian Investment Strategies Over the

    • Words: 26080
    • Length: 73 Pages

    " This is significant because it shows how some critics of contrarian investing will often point to the various instances of speculation and assume that it is contrarian investing. In some cases the psychology of consumers can become so extreme, that the definition of what is speculative expands greatly. As a result, using contrarian investing in conjunction with other indicators / tools can help prudent investors and traders, be able to

  • Strategies of Kodak and Fujifilm

    • Words: 1896
    • Length: 6 Pages

    Kodak and Fujifilm Fujifilm and Eastman Kodak: History and Core Business Founded in 1934, Fujifilm has in the recent past "expanded to become an innovative leader in a variety of business fields" (Fujifilm, 2013). As the firm further points out, apart from being the first photographic film maker in Japan, it has over time "leveraged its imaging and information technology to become a global presence known for innovation in healthcare, graphic

  • Cell Phone Market Is Global in Scope,

    • Words: 1238
    • Length: 3 Pages

    cell phone market is global in scope, with manufacturers and distributors in most of the developed world. However, there are five top-tier firms that clearly dominate the market: Nokia, Samsung, LG, Motorola and Sony Ericcson. These five firms account for about 70% of the global business. Nokia is in Finland, Motorola in the United States, the rest are Asian. Second tear firms are Apple, Research in Motion, and HTC.

  • Ford Motor Company's Efforts to Redefine Strategies

    • Words: 1977
    • Length: 7 Pages

    Ford Motor Company's efforts to redefine strategies to address key strategic issues during the upcoming fiscal year. The essay also reviews Ford's business-level strategy, the company's value chain activities and identifies Ford positioning with respect to the five forces of competition. Ford's current business- level strategy was developed as a result of challenges the company has faced in the last decade. Ford saw their market share in the U.S. decline

  • Business Plan Insignia Systems Insignia Systems, Inc.

    • Words: 4680
    • Length: 17 Pages

    Business Plan INSIGNIA SYSTEMS Insignia Systems, Inc. Business Plan The Business Profile: Insignia Systems, Inc. Business Description "Insignia Systems, Inc. markets, sells and supports in-store advertising and promotional products, programs and services designed to provide retailers and consumer goods manufacturers with highly effective in-store programs and point-of-purchase display materials" (Insignia Systems, 2012) Insignia is engaged in advertising to customers in a retail environment who may otherwise not see the product advertised. One of the slogans that

  • Sony Corporation Is a Global

    • Words: 5507
    • Length: 20 Pages

    Buyer Power: Retailers are the primary tier of buyers in the television segment of the global consumer electronics market. There are a variety of retailing channels used in this industry. The primary channel of distribution is through electronics retailers, like Best Buy, which comprises 65% of the total market value. Hyper and supermarkets, such as WalMart and Target, make up only 14.4% of the market. Sales via department stores, like Sears,