Problem:
Felix, a U.S. technology company has recently developed a revolutionary wireless phone. The product offers exciting new features along with all of the features of current products, but at a fraction of the manufacturing costs. As the international business manager of Felix, you have been asked to choose the best mode of entry into the European market. Your have the following options:
o Export your product from the United States.
o Enter into an alliance with a large European company.
o Manufacture the product in the United States and set up a wholly owned subsidiary in Europe.
o License a European firm to manufacture and market the phone in Europe.
In preparation for your choice, list the pros and cons of each method of entry. Which choice do you present to your CEO? Support your decision.