International Market Entry Strategies

Companies typically select an entry strategy that would best meet their needs. For instance, a typical strategy for Toyota is licensing, where Toyota manufactures the cars and fills the orders for it while another organization is responsible for the distribution and marketing.

In 2007, Wal-Mart announced their intention to expand into China by agreeing to purchase an established discount chain. Read the following for more information:

• Wal-Mart expands Chinese business. (2007, February 27). BBC News. Retrieved February 24, 2009, from
  http://news.bbc.co.uk/2/hi/business/6399531.stm

In this assignment, you will investigate and review two large multinational companies operating in the global marketplace. Include one U.S. and one foreign company.

You may select one of the MNCs from the list given for the course project. Ensure that the MNC you select for this assignment is not repeated in the course project. Here is the list: CEMEX, Fiat, Nestle, Grupo Gigante, Komatsu, Shell, IKEA, Toyota, Wal-Mart, Coca-Cola, McDonald’s, Honda, and Philips Electronics.

Using the Internet and the Argosy University online library resources, conduct research and answer the following questions.

1. For the international company operating in the U.S. you selected, answer the following:
   1. What entry strategy was used to expand into the U.S. market?
   2. What are some of the risks and issues associated with this entry strategy?
   3. What are some alternative entry strategies this international company could consider?
   4. How has the chosen entry strategy fared?
2. For the U.S. company operating in an international country you selected, answer the following:
   1. What expansion strategy did the company use? Why do you think it chose this strategy over others?
   2. What type of regulations do you think your selected company will need to comply with prior to expanding into new markets?
   3. How was the investment in foreign operations funded by the U.S. parent company?