Entry Mode Theory

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The Entry Mode Theory -Different Approaches- Topic Paper for International Strategic Management Outline Abstract 3 Introduction 3 Overview of Entry Mode Theories 4 The Uppsala Model 4 The Uppsala Model - Example 4 The Uppsala Model – Limitations 5 Porter’s Diamond Model 6 Porter’s Diamond Model - Example 6 Porter’s Diamond Model - Limitations 8 The Born Global Concept 8 The Born Global Concept – Example 9 The Born Global Concept – Limitations 10 Conclusion - the comparison and relation of Entry Mode Theories 11 Chronological development 11 Level of risk 12 Time consumption 13 Investment cost 14 Typical type of corporation 14 References 16 Abstract The literature focuses on three entry mode…show more content…
The next step was the establishment of subsidiaries in Norway and Finland. After acquiring experience in the Nordic countries, Volvo started to export its products to countries with greater distance, namely Holland, Belgium and various countries in South America. As a last step, Volvo established subsidiaries in Finland and Norway. In the 1950s, further expansion followed. Subsidiaries were established in most European countries, USA and Canada. In the year 1973 Volvo opened up a car manufacturing plant in the USA, followed by a second one in Belgium in 1975. Nowadays Volvo has over 100 export markets, manufacturing subsidiaries in five countries and sales subsidiaries in twelve. The Uppsala Model – Limitations The Uppsala model is the historically oldest entry mode theory discussed in our paper. One could argue that it is particularly the date of origin that reveals its limitations. The development of the global infrastructure has not reduced the physical distance; however, it has certainly helped to overcome it. Furthermore, technological milestones like the Internet have simplified communication significantly. As a result of these advancements, the cultural exchange around the world has increased leading to some extent of cultural convergence. Due to these dramatic changes in logistical capacities, communication technology as well as ongoing cultural convergence, much of
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