In this module, we have outlined the five most common modes of international market entry: exporting, licensing and franchising, acquisition, partnering (or strategic alliance) and establishing a new subsidiary. Each entry mode has advantages and disadvantages, and by understanding these, organizations can avoid the high costs of establishing operations in a new international market. For this discussion activity, respond to the following prompts:
Research one organization that has expanded into an international market (crosses national borders) and outline how this organization entered this new market. Identify the specific mode of entry that the organization used.
What were the organizational advantages or disadvantages of using this mode?
Has this organization been successful?