Once a strategic focus is decided, the selection of the means of transferring a company’s competitive advantage becomes an essential choice – does a multinational company use licensing, exports, wholly-owned subsidiaries, joint venture, direct investment, partnership, or alliance to enter new markets? Or, could it be a mix of all these?
compare and contrast when it would be advantageous, and disadvantageous, to enter a foreign market under the methods listed above (licenses, exports, etc.). Be sure to:
- Define and explain each method.
- Detail when it would be advantageous, and disadvantageous, to utilize each of the methods.
- Offer an example of a multinational company who utilizes each method and explain if you believe it is the most or least appropriate method to utilize for that company given their product or service.
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