Selecting and Entering Global Markets

Schlegelmilch, Bodo B.

doi:10.1007/978-3-030-90665-8_3

Bodo B. Schlegelmilch²

Part of the book series: Management for Professionals ((MANAGPROF))

5078 Accesses

Abstract

This chapter focuses on two important decisions: how to select the most promising geographic market(s) and which market entry method is the most appropriate. Thus, the first part of the chapter describes how to systematically assess and select geographic markets. The second part describes alternative market entry methods. A distinction is made between non-equity modes, such as different means of exporting and contractual agreements, and equity modes, such as joint ventures and wholly owned subsidiaries.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Chapter: USD 29.95; Price excludes VAT (USA)

eBook: USD 49.99; Price excludes VAT (USA)

Softcover Book: USD 64.99; Price excludes VAT (USA)

Hardcover Book: USD 99.99; Price excludes VAT (USA)

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

1.
Ansoff (1957).
2.
Tata (n.d.).
3.
Levitt (1960).
4.
Bartlett (2004).
5.
Demographic Yearbook (2015).
6.
Craig and Douglas (2005).
7.
Stout (n.d.), Dunkels (n.d.), Demming (n.d.) and Adams (2008).
8.
Miaschi (2019).
9.
The Economist Intelligence Unit (n.d.).
10.
GlobalEdge (n.d.).
11.
Keegan and Schlegelmilch (2001).
12.
Dunning (1993).
13.
Lieberman and Montgomery (1988).
14.
Peng (2006).
15.
Mascarenhas (1992), Isobe et al. (2000), and Fuentelsaz et al. (2002).
16.
Peng (2006) and Gaba et al. (2002).
17.
Stonehouse et al. (2004).
18.
Cavusgil et al. (2020).
19.
Webspy (n.d.).
20.
Howard (1994).
21.
Rose (2016).
22.
Brewer’s Association (n.d.) and CraftBeer.com (2018).
23.
Barrett (2016) and Furnari (2015).
24.
Rose (2016).
25.
Brewer’s Association (2018).
26.
Keegan and Schlegelmilch (2001).
27.
Kaikati and Jack (1993).
28.
Javalgi et al. (2004).
29.
The Economist (2005).
30.
Infosys (n.d.).
31.
Wipro (n.d.).
32.
Tesco Bangaluru (n.d.).
33.
Ball et al. (2008).
34.
Ball et al. (2008).
35.
Cavusgil et al. (2020).
36.
Cavusgil et al. (2020).
37.
Cioletti (2019).
38.
Molaro (2006).
39.
Bruss (2002).
40.
Cavusgil et al. (2020).
41.
Decker (2011).
42.
Cavusgil et al. (2020).
43.
Stonehouse et al. (2004).
44.
Spulber (2007).
45.
Roza et al. (2011).
46.
The Economist (2005).
47.
Graf et al. (2013).
48.
Tallman (2008) and Allred and Swan (2008).
49.
Cavusgil et al. (2020).
50.
IBM Center for Applied Insights (2012).
51.
Friedman (2012).
52.
Bamford and Ernst (2002).
53.
Parise and Casher (2003, p. 27).
54.
Wassmer (2010).
55.
Bamford and Ernst (2002).
56.
Keegan and Schlegelmilch (2001, p. 295).
57.
Stewart and Maughn (2011) and Cui and Kumar (2012).
58.
Das and Bing-Sheng (1999, 2001).
59.
The Economist (2007).
60.
Gupta and Wang (2010).
61.
Kale and Singh (2009, p. 48).
62.
Kale and Singh (2009).
63.
Palmer (2006).
64.
Robson et al. (2019).
65.
Robson et al. (2012).
66.
UNCTAD (2020).

References

Adams, S. (2008). Dilbert. Accessed July 11, 2020 from www.dilbert.com.
Allred, B. B., & Swan, K. S. (2008). Is ‘Do what you do best and outsource the rest’ an appropriate technology sourcing strategy? In S. Tallman (Ed.), A new generation in international strategic management, Chapter 3 (pp. 40–62). Edward Elgar Publishing.
Google Scholar
Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113–124.
Google Scholar
Ball, D. A., Lindsay, V. J., & Rose, E. L. (2008). Rethinking the paradigm of service internationalization: Less resource-intensive market entry modes for information-intensive soft services. Management International Review, 48(4), 413–431.
Article Google Scholar
Bamford, J., & Ernst, D. (2002). Managing an alliance portfolio. The McKinsey Quarterly, 28(3), 29–39.
Google Scholar
Barrett, D. G. (2016). Sharing a beer with Shannon Long – America’s beer export pioneer. SommBeer. Accessed June 19, 2020 from https://sommbeer.com/2016/09/19/sharing-a-beer-with-shannon-long-americas-beer-export-pioneer/.
Bartlett, C. A. (2004). P&G Japan: The SK-II Globalization Project. HBS No. 9-303-003. Case Study. Harvard Business School Publishing.
Google Scholar
Brewer’s Association. (2018). U.S. beer sales volume growth 2017. Accessed June 19, 2020 from https://www.brewersassociation.org/wp-content/uploads/2018/03/Domestic-Sales-Infographic.jpg.
Brewer’s Association. (n.d.). Craft Brewer Definition. Accessed June 19, 2020 from https://www.brewersassociation.org/statistics-and-data/craft-brewer-definition/.
Bruss, J. (2002). Coca-Cola strikes deal with Danone. Beverage Industry, 93(7), 11.
Google Scholar
Cavusgil, S. T., Knight, G., & Riesenberger, J. R. (2020). International business: The new realities (5th ed.). Pearson Education.
Google Scholar
Cioletti, A. (2019, August 12). The magical world of Disney. License Global’s. Accessed June 28, 2020, from https://www.licenseglobal.com/magazine/magical-world-disney.
CraftBeer.com. (2018). Beer styles study guide. Accessed June 19, 2020 from http://www.craftbeer.com/beer-styles-guide.
Craig, C. S., & Douglas, S. P. (2005). International marketing research (3rd ed.). Wiley.
Google Scholar
Cui, A. S., & Kumar, M. V. S. (2012). Termination of related and unrelated joint ventures: A contingency approach. Journal of Business Research, 65(8), 1202–1208.
Article Google Scholar
Das, T. K., & Bing-Sheng, T. (1999). Managing risks in strategic alliances. Academy of Management Executive, 13(4), 51–52.
Google Scholar
Das, T. K., & Bing-Sheng, T. (2001). Trust, control, and risk in strategic alliances: An integrated framework. Organization Studies, 22(2), 252–254.
Article Google Scholar
Decker, S. (2011). LG’s patent claim against Sony faces review by U.S. trade agency. Accessed May 30, 2014, from http://www.bloomberg.com/news/2011-06-01/lg-s-patent-claim-against-sony-faces-review-by-u-s-trade-agency.html.
Demming, W. E. (n.d.). Quotable Quotes. Good Reads. Accessed July 1, 2020, from https://www.goodreads.com/quotes/7327935-without-data-you-re-just-another-person-with-an-opinion.
Demographic Yearbook. (2015). Definition of “Urban”. Accessed June 1, 2020, from https://unstats.un.org/unsd/demographic-social/products/dyb/documents/dyb2015/Notes06.pdf.
Dunkels, A. (n.d.). LibQuotes. Accessed July 1, 2020, from https://libquotes.com/andrejs-dunkels.
Dunning, J. (1993). Multinational enterprises and the global economy. Addison-Wesley.
Google Scholar
Friedman, T. L. (2012, January 28). Made in the world. The New York Times. Accessed August 11, 2014, from http://www.nytimes.com/2012/01/29/opinion/sunday/friedman-made-in-the-world.html?_r=2
Fuentelsaz, L., Gomez, J., & Polo, Y. (2002). Followers’ entry timing. Strategic Management Journal, 23(2), 245–264.
Article Google Scholar
Furnari, C. (2015, March 24). Craft Beer exports continue to grow. Brewbound. Accessed June 19, 2020 from https://www.brewbound.com/news/craft-beer-exports-continue-to-grow.
Gaba, V., Pan, Y., & Ungson, G. (2002). Timing of entry in international markets. Journal of International Business Studies, 33(1), 39–55.
Article Google Scholar
GlobalEdge. (n.d.) Home page. Accessed June 1, 2020, from https://globaledge.msu.edu/.
Graf, M., Schlegelmilch, B. B., Mudambi, S. M., & Tallman, S. (2013). Outsourcing of customer relationship management: Implications for customer satisfaction. Journal of Strategic Marketing, 21(1), 68–81.
Article Google Scholar
Gupta, A., & Wang, H. (2010, March 1). How to avoid getting burned in China and India. Business Week Online. Accessed July 28, 2021, from https://www.bloomberg.com/news/articles/2010-03-01/how-to-avoid-getting-burned-in-china-and-india
Howard, D. G. (1994). The role of export management companies in global marketing. Journal of Global Marketing, 8(1), 95–110.
Article Google Scholar
IBM Center for Applied Insights. (2012). Pushing the limits of outsourcing. Accessed August 11, 2015, from http://www-935.ibm.com/services/be/en/it-services/SOE12346-USEN-00.pdf.
Infosys. (n.d.). Home page. Accessed June 7, 2020, from https://www.infosys.com.
Isobe, T., Makino, S., & Montgomery, D. (2000). Resource commitment, entry timing, and market performance of foreign direct investments in emerging economies. Academy of Management Journal, 43(3), 468–484.
Article Google Scholar
Javalgi, R. G., Martin, C. L., & Todd, P. R. (2004). The export of E-services in the age of technology transformation: Challenges and implications for international service providers. The Journal of Services Marketing, 18(4), 560–573.
Article Google Scholar
Kaikati, G., & Jack, A. (1993). Don’t crack the Japanese distribution system—Just circumvent it. Columbia Journal of World Business, 28(2), 34–45.
Article Google Scholar
Kale, P., & Singh, H. (2009). Managing strategic alliances: What do we know now, and where do we go from here? Academy of Management Perspectives, 23(3), 45–62.
Article Google Scholar
Keegan, W. J., & Schlegelmilch, B. B. (2001). Global marketing management: A European perspective. Financial Times/Prentice Hall.
Google Scholar
Levitt, T. (1960). Marketing Myopia. Harvard Business Review, 38(July-August), 45–56.
Google Scholar
Lieberman, M., & Montgomery, D. (1988). First-mover advantages. Strategic Management Journal, 9(Special Issue), 41–58.
Article Google Scholar
Mascarenhas, B. (1992). Order of entry and performance in international markets. Strategic Management Journal, 13(7), 499–519.
Article Google Scholar
Miaschi, J. (2019, March 19). Which Country Drinks the Most Beer? WorldAtlas. Accessed June 1, 2020, from worldatlas.com/articles/which-country-drinks-the-most-beer.html.
Molaro, R. (2006). Appetite for success. License!, 9(3), 44–46.
Google Scholar
Palmer, N. (2006). Alliances: Adapting governance models to maximize alliance performance. Outlook Point of View. Accessed August 11, 2015, from http://www.cas-us.com/SiteCollectionDocuments/PDF/Alliances.pdf.
Parise, S., & Casher, A. (2003). Alliance portfolios. Academy of Management Executive, 17(4), 27.
Google Scholar
Peng, M. W. (2006). Global strategy. Thomson South Western.
Google Scholar
Robson, M. J., Katsikeas, C. S., Schlegelmilch, B. B., & Pramböck, B. (2019). Alliance capabilities, interpartner attributes, and performance outcomes in international strategic alliances. Journal of World Business, 54(2), 137–153.
Article Google Scholar
Robson, M. J., Schlegelmilch, B. B., & Bojkowszky, B. (2012). Resource deployment stability and performance in international research-and-development alliances: A self-determination theory explanation. Journal of International Marketing, 20(1), 1–18.
Article Google Scholar
Rose, S. (2016, December 8). Brew Export sends Michigan beer overseas. Mittenbrew. Accessed June 19, 2020, from https://www.drinkible.com/2016/12/brew-export-sends-michigan-beer-overseas.
Roza, M., Van den Bosch, F. A., & Volberda, H. W. (2011). Offshoring strategy: Motives, functions, locations, and governance modes of small, medium-sized and large firms. International Business Review, 20(3), 314–323.
Article Google Scholar
Spulber, D. F. (2007). Global competitive strategy. Cambridge University Press.
Book Google Scholar
Stewart, M. R., & Maughn, R. D. (2011). International joint ventures, a practical approach. Accessed July 28, 2021, from https://www.dwt.com/-/media/files/publications/2012/05/international-joint-ventures-a-practical-approach/files/international-joint-ventures-article_stewart/fileattachment/international-joint-ventures-article_stewart.pdf.
Stonehouse, G., Campbell, D., Hamill, J., & Purdie, T. (2004). Global and transnational business: Strategy and management (2nd ed.). Wiley.
Google Scholar
Stout, R. Quotes. (n.d.). BrainyQuote.com. Accessed July 1, 2020, from: https://www.brainyquote.com/quotes/rex_stout_130194.
Tallman, S. (2008). A new generation in international strategic management. Edward Elgar Publishing Limited.
Google Scholar
Tata. (n.d.). Tata Group home page. Accessed June 1, 2020, from https://www.tata.com.
Tesco Bangaluru. (n.d.). Home page. Accessed June 7, 2020, from http://www.tescobengaluru.com.
The Economist. (2005, March 3). Outsourcing: Time to bring it back home? The Economist Online. Accessed May 20, 2014, from http://www.economist.com/node/3730372.
The Economist. (2007, April 19). Joint ventures in China: Wahaha-haha! The Economist Online. Accessed August 10, 2015, from http://www.economist.com/node/9040416.
The Economist Intelligence Unit. (n.d.). Home page. Accessed June 1, 2020, from https://www.eiu.com.
UNCTAD. (2020). World investment report 2020. Accessed June 10, 2020, from https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=2769.
Wassmer, U. (2010). Alliance portfolios: A review and research agenda. Journal of Management, 36(1), 148–150.
Article Google Scholar
Webspy. (n.d.). Home page. Accessed June 1, 2020, from https://www.webspy.com.
Wipro. (n.d.). Home page. Accessed June 7, 2020, from https://www.wipro.com.

Download references

Author information

Authors and Affiliations

WU Vienna, Vienna University of Economics and Business, Vienna, Austria
Bodo B. Schlegelmilch

Authors

Bodo B. Schlegelmilch
View author publications
You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

About this chapter

Cite this chapter

Schlegelmilch, B.B. (2022). Selecting and Entering Global Markets. In: Global Marketing Strategy. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-90665-8_3

Download citation

DOI: https://doi.org/10.1007/978-3-030-90665-8_3
Published: 16 February 2022
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-90664-1
Online ISBN: 978-3-030-90665-8
eBook Packages: Business and ManagementBusiness and Management (R0)

Publish with us

Policies and ethics