EBK MARKETING
EBK MARKETING
6th Edition
ISBN: 9781259898884
Author: Grewal
Publisher: YUZU
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Chapter 8.3, Problem 2PC
Summary Introduction

To determine: The riskiest entry strategy and the reason to consider it the most risky.

Introduction: The approaches used by a firm to enter into a market for doing business are known as the entry strategy of the firms.

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Which entry strategy has the least risk and why?
Order the modes of entry in terms of associated costs and risks from smallest to largest:       Costs:       Risks:
Nike is a large and successful firm in the design of athletic shoes. It could easily decide to forward-integrate and manufacture the shoes it designs. Thus, the firm has a credible threat over its current outsourced manufacturers. If Nike has no intention of actually entering the manufacturing arena, is it ethical for the Nike supply chain management to bring up this credible threat during annual pricing negotiations? What are some reasons Nike may want to consider such a vertical integration more seriously?
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