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Assignment 2012

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Major assignement

In insight i think i woudn’t have advised kingfisher to accept the order from Denzo gato because, first, the creator of kingfisher knew little about Japan external barriers. In fact, before choosing an entry mode when a company decided to internationalize and kingfisher’s owner forgot to consider the importance of the market size and growth which are still the first key parameters in determing the mode of entry. According to Svend Hollensen (Global marketing, 1998, P 211) the larger the country and the size of its market, and the higher the growth rate, the more likely management will be to commit resources to its development, and to participate in a majority-owned joint venture. On the other hand , small markets may not warrant significant attention or resources. Then, he also forgot the direct and indirect trade barriers problems. In the text it’s said that he knew little about food entry.The choice of the Denzo gato’s company was a good choice, because the company had a very good position on his market ( 2 nd position). It’s not the best choice because it could also be a dangerous competitor for kingfishers. The other problem is the fact tha the owner had underestimated the other choices on non really determinants criteria. According to Root,F.R (Entry strategies for international markets, 1994) , Exporting firms may work through distributors, which are the exclusive representatives of the company and are generally the sole importers of the company’s product in their markets. Patrick had first to deal with the australian chambers of manufacturers to see if it exists another way to access the japanese market . Patrick had to consult the WTO website to know much about the trade operations in Japan.
According to Johanson and Vahne in « the international process of the firm ( 1977, p 23 to 32), in case of small and medidium sized companies

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