INTB 1203 Chapter Notes - Chapter 13: Yonghe District, Backhoe Loader, Jollibee
16 Dec 2016
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Timing of entry: entry is early when a firm enters a foreign market before other foreign firms and late when a firm enters after other international businesses have established themselves. First-mover advantages: advantages accruing to the first to enter a market. Preempt rivals and capture demand with strong brand name. Build volume and ride down the experience curve to cut costs create switching costs to tie customers to products/services. First-mover disadvantages: disadvantages associated with entering a foreign market before other international businesses. Pioneering costs: costs an early entrant bears that later entrants avoid, such as the time and effort in learning the rules, failure due to ignorance, and the liability of being a foreigner. Large scale has long-term impact, difficult to reverse, involves more risk: can affect competition; need to predict competitors" reactions, easier to attract suppliers, customers, but reduces resources for expansion to other markets. Exporting: sale of products produced in one country to residents of another country.
