In: Operations Management
There are basically five approaches for entering an international market; usually the choices and risks are very product dependent. Assume you are a consultant specializing in global logistics and distribution. There are four clients that are planning to enter an international market (China) with different products. Using the following factors for your choices, pick any two clients and complete their matrix below with your recommendations and briefly describe the rationale behind your choices.
Entry Approach |
Exporting, Licensing, Management contracting, Joint Venture, and Direct Investment. |
Shipping Methods |
Truck, Rail, Water, Air |
Level of Risk |
High, Medium, Low |
Client #1 Product: Candy Bars
Decisions to consider: |
Your recommendation: |
Your rationale: |
Entry Approach |
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Shipping Methods |
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Level of product or market risk |
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Level of financial risk |
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Factors that could affect distribution service levels |
Client #2 Product: Golf Clubs
Decisions to consider: |
Your recommendation: |
Your rationale: |
Entry Approach |
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Shipping Methods |
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Level of product or market risk |
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Level of financial risk |
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Factors that could affect distribution service levels |