Question

What does Entry Strategies and Strategic Alliances

AND

Global Marketing and R&D mean? When are they used? or show up? Please provide an example.

Answer 1

Below are various modes through which a firm can enter a global market for business -

Establishing own unit - The firm plans to establish own unit in the foreign country to directly make and sell the products to the consumers.

Mergers and Acquisitions - By merging with or acquiring a firm which has a stronghold in a specifc location or area thus bringing new consumer base.

Strategic Alliance - In this mode of collaboration, the firms form a partnership to achieve common strategic objectives which can include increase of sales revenues in a certain location for a certain product etc. The firms work as independent organizations but dedicate resources to achieve the objectives. Understanding of the objectives and the strategies bulit to achieve them is critical for its success.

Joint venture - In this mode of collaboration, the firms work together to form a new venture or business by contributing resources, financing the venture and creatng an organizational structure etc.

Global Marketing involves the marketing strategies companies need to consider to market and sell the products across countries. The firm might target all countries with same product and marketing strategy or might group countries based on their location and similarities in cultures to target marketing efforts.

Global R&D involves establishing R&D centers globally to conduct research and development with facilities and skilled workforce concentrated in central locations for all the R&D the company wishes to do on its upcoming products or projects across the world.