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Government Intervention

In: Business and Management

Submitted By zubayer1
Words 415
Pages 2
Entry strategies: * * * Entry Mode: The decision to make the firm expand globally, we choose the entry mode as “Exporting”.
Factors that influences us to choose the entry mode: * Trade barriers: Egypt has restrictions in so many service sectors as GATS, though Egypt minimal the barriers for ‘Mineral Water’ sector due to shortage of pure drinking water and comparative beverage market.

* Economic risks: Egypt is re-forming its position as the standout growth market for consumer market and it indicates this is a good time for food and drink companies to pursue expansion in Egypt. The leap of real GDP growth picked up significantly throughout the years, facilitated by the better political stability and low base effects. Views that attract us to export MUM in Egypt based on improving economy on that particular sector combined with refining political act.

* Cost: As we exporting, we are avoiding the cost of establishing local manufacturing processes. It helps us to achieve experience curve and location economies.

* Firm Strategy: As we are following the Greenfield investment a new wholly owned subsidiary. We have planned to establish physical intensive plants. This strategy is established because there are fewer competitors, competitive advantages that comprises of implanted competencies, skills, routines and culture.

Drawback: As we are exporting to a new wholly owned subsidiary, there may have been a matter of concerned about transportation costs and uncertain political involvement, which can be resolved or minimize through government integration.

The choice of Egypt market: * Egypt is politically steady. * Egypt has free market system. * Egypt has comparatively low inflation rates. * Egypt has fewer competitors on this particular sector. The choice of timing of entry: As our firm enters

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