Siemens AG is a German multinational engineering and electronics conglomerate headquartered in Munich, Germany. It is the largest Europe-based electronics and electrical engineering company. Siemens and its subsidiaries employ over 360,000 people and reported global revenue of approximately 74 billion euros for 2011. It sells products in 190 different countries, and has established 31 separate Web sites using 38 different languages.
Although market X has great market potential, it is relatively politically unstable. To facilitate movement into market X, Siemens decides to first learn more about the local culture. It also wants to tap into the local resources and networks to sell their products. Siemens has proprietary technology and therefore has concern about problems with product piracy. As a result, it wants to have some degree of control and coordination, but minimal level of risk.
Given these market conditions and the concerns from Siemens, please select THE MOST APPROPRIATE (ONE) market entry strategy among the followings:
- Exporting - indirect & direct
- Contract manufacturing
- Countertrade
- Co-branding
- Franchising
- Licensing
- Management contract
- R & D contracts
- Turnkey projects
- Strategic alliance
- Joint venture
- Merger and acquisition (M & A)
- Affiliate
- Wholly owned subsidiary