When the decision has been made to enter a new industry, which entry mode is most...

When the decision has been made to enter a new industry, which entry mode is most commonly used and what issues must managers address with this mode of entry?

Expert Solution

Usually entry into a new industry is done through partnerships and joint ventures. It would be better if the other partner is either industry leader or has sufficient capabilities in the industry you are looking to enter. Collaborating and strategic alliances will lead to better opportunities for both the partners.

However, there are a few issues that managers must adress like:

Finding a good partner: It is not at all easy to find a suitable partner who is strategically campatible, has complementary skills and resources, is relatively of equal size and is financially capable.
Risk of unequal partnership: If the other partner has more say in various strategic matters or is more powerful, then the partnership is more likely to be problematic and troublesome.
Loss of control is a possible risk which must be addressed
Partners with different goals and objectives will lead to issues in future.
Lack of research and planning before the partnership will lead to detrimental outcomes
Managers must also look at possible conflicts and disputes that might arise in the future and look for ways to avoid these conflicts.

keosha answered 1 year ago

From an industry-based view, explain why alliances are a frequent mode of entry for the oil...

From an industry-based view, explain why alliances are a frequent mode of entry for the oil industry in Russia. From a resource-based view, what are the complementary resources and capabilities both sides brought to TNK-BP? From an institution-based view, what are the formal and informal rules of the game governing this industry in Russia? As an ethics consultant to BP, how would you advise it during both episodes of the conflicts with AAR?

You are a marketing manager for apple and decision has been made that they will begin...

You are a marketing manager for apple and decision has been made that they will begin selling custom-built premium gaming device. Briefly describe the likely target market, marketing mix (4P's) elements for this product and include details on the content of each P. Integrate your answer how you would position that product and describe how you would use social media in an integrated marketing communications strategy. Also, answer what conditions uncovered from a PEST analysis would lead apple to pursue...

Which mode of entry provides advantages to a multinational firm that can be transferred within the...

Which mode of entry provides advantages to a multinational firm that can be transferred within the firm at very low cost? a. Indirect exports b. Externalization c. Licensing d. Ownership

What is the most preferred planning mode of strategic decision-making for organizations competing internationally?

How does each advantage in Dunning's eclectic theory specifically affect a firm's decision regarding entry mode?

What is the most favorable corporate strategy option to enter an industry that is protected by...

What is the most favorable corporate strategy option to enter an industry that is protected by high barriers to entry? Why?

The aviation industry is one of the sectors that has been affected most by the COVID-19...

The aviation industry is one of the sectors that has been affected most by the COVID-19 pandemic. To survive, a large number of airlines are compelled to increase their level of gearing. Explain what it means if a company's gearing is increased and point out the advantages and disadvantages of a higher level of gearing for an airline company in the current situation.

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is Work In Process Inventory Direct Materials Direct Labor Manufacturing Overhead Raw Materials Inventory Work In Process Inventory Finished Goods Inventory Work In Process Inventory Finished Goods Inventory Direct Materials Direct Labor Manufacturing Overhead

The ABC Manufacturing Co. has made a decision to replace an existing production line with new...

The ABC Manufacturing Co. has made a decision to replace an existing production line with new equipment. This project will require several tasks (jobs) with precedence relationships and duration (weeks) as shown in the following table. The project will be finished when activities A-J are all finished. Activity Predecessors Duration (Weeks) A — 5 B — 5 C A 11 D B 9 E C 4 F C, D 10 G E 4 H G 3 I G 4 J...

Mercy Medical Mega Center , a taxpaying entity, has made the decision to purchase a new...

Mercy Medical Mega Center , a taxpaying entity, has made the decision to purchase a new laser surgical device. The device costs $400,000 and will be depreciated on straight-line basis over five years to a zero salvage value. Mercy Medical could borrow the full amount at a 15 percent rate for five years. The after-tax cost of debt equals 9 percent. Alternatively, it could lease the device for five years. The before-tax lease payments per year would be $80,000. The...

Question