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Develop MPI Essay

Decent Essays

First, in today’s global economy, many companies are vying for a presence in the global markets. There are several ways to gain entry into a foreign market but many questions must be answered first to make sure there is a return on investment or an exit strategy. In the Foley Company case, Joanne has to determine what are her Company strategies advantages and disadvantages of entering Brazilian market for soybeans harvesters: First, she has to determine whether the Company is considering a standalone entry or entry through alliances. This could be a pivotal point in their decision because on one hand the lack of experience with foreign manufacturing operations could prove to be costly in a standalone entry for example. But as Mr. …show more content…

.Licensing Licensing method of entry for companies could be reinsuring for the Foley Company because the Company would be able to legally protect its assets while in the process conducting market establishing its name in Brazil. But this is more to prepare the “field” by licensing its rights and expertize to local companies conduct to business on its behalf. The important elements here are protection by the local regulations. The advantages here could be: Less hurdles to enter in case of import complexities in Brazil, fast entry into the market, no capital upfront required to establish a presence. But the disadvantages could be: Decrease in sales (not fully engage yet), culture differences and interpretations, and more importantly, the licensee could collaborate with competitors or become competitors themselves which would complicate future deals in Brazil. Franchising By recommending franchising a method of entry, Ms. Poe could emphasize the fact in this case rapid expansion, where a franchise would maintain a business relationship with Foley Company which would grant it the right to distribute its soybeans harvesters using Foley’s brand in exchange for a fee. The creation of a network of owner operated dealers would increase its market share and expanded territories. Less advertising programs and costs, market penetration at high rate, brand equity. The disadvantage of this method of entry could be the cost of engaging

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