Market Entry Mode Choice: Theory and Practice. Comparing China and Brazil Cases

Abstract

The purpose of this article is to give a brief introduction into a work, which investigated the differences between the actual strategic approach, that a company executes when entering a new market, with the approach offered by various theories. Due to confidentiality agreement signed with the company the author is not authorized to disclose any sensitive or internal information that can reveal the company’s identity. The paper combines the most common theories and approaches for market entry mode selection in order to develop a theory-based framework, which furthermore is compared to the firm’s working theory. The analysis is performed with the use of two markets, where the company already operates. This method of analysis identifies the crossing points as well as the controversial aspects of both frameworks. This way the study tests how effective and applicable are traditional theories to such a niche market that the company operates in. On the other hand by comparing the company’s entry mode selection model with the theorybased model the study identifies the imperfections of the company’s theory and makes a series of recommendations for its improvement. Additionally, it reveals the importance of combining and adjusting the theories to the specific company and not vice versa.

Keywords

• бразилия
• китай
• выход на новые рынки
• модель интернационализации уппcала
• перлмуттер
• greiner’s curve