Entry Mode:
Assume that the company M.A.C Cosmetics is trying to expand its makeup business in Vietnam. In order to reduce the costs of making its makeup product, M.A.C Cosmetics will manufacture it in China and then export it to Vietnam in bulk where it will be packaged and ready to be sold. People will buy M.A.C Cosmetics makeup product in malls located in the major cities in Vietnam such as Ho Chi Minh City, Ha Noi, Hai Phong, and Can Tho.
1) If company M.A.C entry mode is exporting, discuss some of the benefits and disadvantages of this entry mode for M.A.C Cosmetics. Provide specific examples With statistical data for these advantages and disadvantages.
2) What are some of the characteristic of exporting? Would the cost be higher? Would the company’s control be lower? How? Give some examples with statistical data.
3) After the makeup product is manufactured in China and then exported to Vietnam in bulk, what are the procedures, strategies, and logistics that M.A.C Cosmetics should implement to package and distribute its products to be sold? Would the Vietnamese government have any constraints or regulations for these procedures and strategies? If there is any governmental constraints, how should M.A.C Cosmetics solve this with the Vietnamese government?