040824 VK EC GCM: Market Entry Strategies (VK) (2018W)

This course is concerned with the market entry decision of firms. It gives an overview of the theoretical approaches to the issues of selection of an appropriate market entry mode by a firm. Such fundamental questions as where, when, and how to enter a foreign market are discussed within the course. The theoretical foundation and the empirical applications of the following market entry modes are discussed: direct and indirect exporting, licensing, strategic alliances (non-equity and equity arrangements), franchising, FDI (brownfield investments, greenfield investments, etc.) as well as mergers & acquisitions.
Moreover, the specific focus of the course is on the most pressing issues faced by international firms, including the decisions about outsourcing and offshoring, as well as the challenges of balancing the interests of multiple groups of stakeholders and the role of Corporate Social Responsibility it this process.
In all discussions the students are encouraged to think about the complexity of cultural and political environments encountered by firms in the course of their global expansion.
As a result, by the end of the course the students are expected to be able to evaluate the advantages and drawbacks related to different modes of market entry. They should be able to provide a coherent proposition for the specific firm in terms of which country / region, when and how it should enter in order to build and utilize its competitive advantage.