Mario Glowik, Market Entry Strategies, First Edition (2009)                                                        Market ...
Mario Glowik, Market Entry Strategies, First Edition (2009)                                                          Quali...
Mario Glowik, Market Entry Strategies, First Edition (2009)Qualitative versus quantitative research methodsSource: modifie...
Mario Glowik, Market Entry Strategies, First Edition (2009)Qualitative versus quantitative research methodsSource: modifie...
Mario Glowik, Market Entry Strategies, First Edition (2009)                                                        Environ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmS...
Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmS...
Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmS...
Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmS...
Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmS...
Mario Glowik, Market Entry Strategies, First Edition (2009)Industry environment of a television set manufacturer located i...
Mario Glowik, Market Entry Strategies, First Edition (2009)                                                        Interna...
Mario Glowik, Market Entry Strategies, First Edition (2009)Relationship of the advantage categories and market entry strat...
Mario Glowik, Market Entry Strategies, First Edition (2009)Firm and market internationalization degreeSource: Johanson & M...
Mario Glowik, Market Entry Strategies, First Edition (2009)Internationalization: conceptualization of an entrepreneurial p...
Mario Glowik, Market Entry Strategies, First Edition (2009)Dimension of time in internationalization concepts researchSour...
Mario Glowik, Market Entry Strategies, First Edition (2009)Typology of new ventures.Source: Di Gregorio et al. (2008)     ...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the interna...
Mario Glowik, Market Entry Strategies, First Edition (2009) A summary of principal contents and major limits of the intern...
Mario Glowik, Market Entry Strategies, First Edition (2009) A summary of principal contents and major limits of the eclect...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the locatio...
Mario Glowik, Market Entry Strategies, First Edition (2009)   A summary of principal contents and major limits of the diam...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the Uppsala...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the Uppsala...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the network...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the network...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the network...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the interna...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the interna...
Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the interna...
Mario Glowik, Market Entry Strategies, First Edition (2009)                                                        Interna...
Mario Glowik, Market Entry Strategies, First Edition (2009)E.P.R.G. scheme and marketing conceptsSource: adapted from Wind...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry decision process     First step: Setting strategic...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry decision process     1.    Degree of hierarchical ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry decision process    2.    2     Market entry rapid...
Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry decision process     3.    Proximity to the marke...
Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry decision process     4.    Investment risk       ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode categorization     Second step: Evaluation of...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode categorization     1.    Contracting (market ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode categorization     2.    Cooperation (hybrid ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes    •     Indirect d direct          I di t a...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes    Indirect and direct export          •    ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes     Licensing           •     contractual tr...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes  Franchising        •     contractual agreem...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes  Franchising        •     franchise system c...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes     Contract manufacturing           1.    o...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modesManagement contracts      •     a firm uses s...
Mario Glowik, Market Entry Strategies, First Edition (2009)Mutual obligations of management contractsSource: adopted from ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Mutual obligations of management contractsSource: modified from...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Turnkey contracts T   k      t t       •    ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Strategic alliances       •      agreements ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Strategic alliances             Main purpose...
Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes International joint ventures       •     tw...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes International joint ventures       •     sam...
Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes Reasons for instability in international jo...
Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes    Overseas branches           •     repres...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modesWholly owned subsidiary      •     describes ...
Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes Wholly owned subsidiary       •     acquisi...
Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode grouping based on four decision determinants ...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market en...
Mario Glowik, Market Entry Strategies, First Edition (2009)                                                               ...
Mario Glowik, Market Entry Strategies, First Edition (2009)European television set market 1990-2011 without Turkey and Rus...
Mario Glowik, Market Entry Strategies, First Edition (2009) East European television set market volume including the non-A...
Mario Glowik, Market Entry Strategies, First Edition (2009)Conglomerate diversification structure of Samsung (status April...
Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on vari...
Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on vari...
Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on vari...
Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on vari...
Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on vari...
Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Group net sales 1999-2007 (2007 forecast)Source: Annual...
Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Group net income 1999-2007 (2007 forecast)Source: Annua...
Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Electronics net sales 1999-2007Source: Annual Reports  ...
Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Electronics net income 1999-2007Source: Annual Reports ...
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Mario glowik charts_market_entry_strategies_july_2009

  1. 1. Mario Glowik, Market Entry Strategies, First Edition (2009) Market Entry Strategies© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 1
  2. 2. Mario Glowik, Market Entry Strategies, First Edition (2009) Qualitative versus quantitative research methods h d© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 2
  3. 3. Mario Glowik, Market Entry Strategies, First Edition (2009)Qualitative versus quantitative research methodsSource: modified from Bungard et al. (2000) Research Method Advantages Quantitative Qualitative ▪ quantified research results ▪ flexible research methods ▪ data comparability and transferability ▪ open questions approach allows ▪ data objectivity due to quantified methods background information ▪ statistical and mathematical context ▪ better reflects complex reality ▪ reasonable in cost and time ▪ focus on relevant research issues ▪ more representative due to a larger ▪ contextual validity sample ▪ exploration of a new topic© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 3
  4. 4. Mario Glowik, Market Entry Strategies, First Edition (2009)Qualitative versus quantitative research methodsSource: modified from Bungard et al. (2000) Research Method Disadvantages Quantitative Qualitative ▪ less method flexibility ▪ relatively expensive and time consuming ▪ fixed questions ▪ interviewer’s profound expertise is interviewer s ▪ proposals allow for limited improvements necessary concerning the topic of research ▪ lack of individual response ▪ no numerical indications possible ▪ limited causation of research results ▪ subjective interpretation of results, ▪ highly quantified data do not reflect which depends on interviewer specific circumstances in reality© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 4
  5. 5. Mario Glowik, Market Entry Strategies, First Edition (2009) Environmental analysis y of the foreign target market© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 5
  6. 6. Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmSource: Modified from Wheelen and Hunger (2004), and Schreyögg (2003) Economic •Gross domestic product (GDP) trend •Unemployment rate •Wage levels •Interest rates •State budget volume/surplus /deficit •Foreign trade surplus or deficit •Inflation rates •Disposable income of consumers •Stability of currency •Debt-equity ratio© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 6
  7. 7. Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmSource: Modified from Wheelen and Hunger (2004), and Schreyögg (2003) Technological •Patents outcomes •Industry cluster •Industry innovation and productivity •Telecommunication (Internet ) infrastructure (Internet-) •Government spending on R&D •Industry expenses for R&D •Technology transfer from laboratory to market place •Attitudes toward new technologies, automation, and rationalization •Country specific industry focus (i.e., electronics, automotive)© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 7
  8. 8. Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmSource: Modified from Wheelen and Hunger (2004), and Schreyögg (2003) Political-Legal •Market versus central planned economy •Democracy •Stability of government •Protection of capital and intellectual property rights •Corruption level •Tax laws/ investment incentives •Antitrust regulations •Affiliation to political and economic organizations (WTO)© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 8
  9. 9. Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmSource: Modified from Wheelen and Hunger (2004), and Schreyögg (2003) Sociocultural •Age distribution of population •Birth/death and growth rate of population •Rate of family formations •Regional shifts in population •Life expectancies •Changes in lifestyle •Attitudes toward minorities •Education/ illiteracy •Violence potential of the society© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 9
  10. 10. Mario Glowik, Market Entry Strategies, First Edition (2009)Elements of the general external (macro) environment of a firmSource: Modified from Wheelen and Hunger (2004), and Schreyögg (2003) Ecological •Environment protection laws •Nature resources and exploitation •Attitudes towards nuclear energy •Consumption of bionomical products Consumption •Market penetration of genetically engineered food •Protection of threatened species of animals© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 10
  11. 11. Mario Glowik, Market Entry Strategies, First Edition (2009)Industry environment of a television set manufacturer located in the EuropeanUnion in 2008 Source: Adopted from Porter (1999) Industry Rivalry Supplier: Danger of new Customer: Threat of technological g market entrants: substitution: ▪ Major component ▪ Firms from China, ▪ High quality ▪ Organic Light Emitting supplier in China, Taiwan and India consciousness and Display Di l (OLED) Japan, and S.Korea price sensitiveness ▪ R&D know-how ▪ Market saturation bundled in Asia in Western Europe ▪ Newly upcoming ▪ Upcoming new industry cluster in markets in Central Poland, Slovakia, and Eastern and Hungary g y Europe p© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 11
  12. 12. Mario Glowik, Market Entry Strategies, First Edition (2009) Internationalization Theories© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 12
  13. 13. Mario Glowik, Market Entry Strategies, First Edition (2009)Relationship of the advantage categories and market entry strategiesSource: Dunning (1980), Perlitz, (2004) Ownership O hi Internalization I li i Location specific L i ifi Advantage specific Entry strategy Foreign direct Available Available Available investment Export Available Available Not available International contracts Available Not available Not available© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 13
  14. 14. Mario Glowik, Market Entry Strategies, First Edition (2009)Firm and market internationalization degreeSource: Johanson & Mattsson (1988) Degree of internationalization of the market Low High Degree of Internationalization Low The Early The Late Starter Starter of the firm High The Lonely The International International among Others© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 14
  15. 15. Mario Glowik, Market Entry Strategies, First Edition (2009)Internationalization: conceptualization of an entrepreneurial process of behavior intimeSource: Jones and Coviello (2005) The Entrepreneur • Level of innovativeness • Level of risk tolerance • Management competence The Firm Internationalization Performance • Organizational structure Behavior • Financial measures (organic vs. mechanic) (as a function of time) (market success) • Fingerprint patterns • Non-financial measures • Profiles f (organizational learning) ( )© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 15
  16. 16. Mario Glowik, Market Entry Strategies, First Edition (2009)Dimension of time in internationalization concepts researchSource: adapted from Hurmerinta-Peltomäki (2003) Current research Linear Events assumptions on the unrepeatable internationalization process of firms Uniqueness States Novelty and y Subjectivity j y surprise Positive No fixed direction direction Rearrangement Objectivity of given factors Non- uniqueness Events Events repeatable Cyclical C li l© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 16
  17. 17. Mario Glowik, Market Entry Strategies, First Edition (2009)Typology of new ventures.Source: Di Gregorio et al. (2008) Extensive Cross Border IV. International III. Cross Border Combination of Resource and Market Resource Integration Resources and Individuals Combination Domestic Combination of II. Accelerated I. Domestic New Venture Resources and Individuals International Sales Domestic Market Extensive Cross Border Opportunities P O i i Pursued d Market C bi ti M k t Combination Opportunities Pursued© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 17
  18. 18. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the international product life-cycle theory Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Inter- e Vernon 1966,  ,  market entryy  U.S.-economy perspective yp p national 1972 through export and after WWII Product FDI depends on the  ignores existence on tariff and Life- product life-cycle non-tariff trade barriers as well Cycle C l position as behavioral aspects  verification and generalization difficult  neglects threat of substitution g through upcoming nations and their industries  model became almost obsolete© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 18
  19. 19. Mario Glowik, Market Entry Strategies, First Edition (2009) A summary of principal contents and major limits of the internalization theory Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Inter- Buckley &  focus on transaction  disregard of ‘follow the customer’ nalization Casson 1976 costs as main impulse phenomenon Theory based on Coase for foreign market entry  transaction costs are hard to 1937 and hierarchy versus quantify Williamson market mechanism  limited attention to behavioral 1975 1975  explains MNE l i aspects (e.g., customer t ( t appearance because preferences) of organizational  ignores impact of entrepreneur capabilities and market and/or management on firm imperfections internationalization  consideration of the  ignores tariff and non-tariff ‘knowledge’ and ‘skill’ barriers, legal aspects, and tax factors f t policy [ li [e.g., subsidies] i th t b idi ] in the target t country© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 19
  20. 20. Mario Glowik, Market Entry Strategies, First Edition (2009) A summary of principal contents and major limits of the eclectic paradigm Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Eclectic Dunning 1979,  consideration of  overlapping ‘conglomeration of Paradigm g 1980, 1983, , , ownership, location, p, , variables’ 1988, 1993, and internalization  hard to make concrete 1994, 1995, OLI elements recommendations for the firm’s 1999, 2000,  multi-causal internationalization strategy 2001 reasons i fl influence  assumption of a ‘homo ti f ‘h the market entry oeconomicus’ strategy of the firm  limitations in analyzing the influence of tax incentives or subsidies which influence foreign direct investment decisions© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 20
  21. 21. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the location concepts Model M d l Representative R t ti Principal P i i l contents t t Major li it f th M j limits of the model d l scholars of the model Year of ub cat o  Publication Location Tesch 1980  location and  empirical studies about the Concepts Hill 1998   demand factors differ relative influence of location Porter 1999 between countries factors with regards to foreign  in connection and influence the direct investment decisions are with traditional competitiveness of problematic to perform international enterprises  difficult to consider all trade theories:  firm’s foreign direct relevant factors due to its high Heckscher-Ohlin investment incentive complexity 1952 depends on country  pays less attention to the A. Smith 1776 specific location ‘follow the customer’ factors phenomenon© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 21
  22. 22. Mario Glowik, Market Entry Strategies, First Edition (2009) A summary of principal contents and major limits of the diamond model Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Diamond Porter 1990    firm  the meaning of competitive g p Model competitiveness advantage is empirically hard to influenced by quantify country-specific  some model assumptions are conditions rather speculative  some firms have  lacks precise recommendations better prerequisites under which circumstances a firm for successful g gains competitive advantage p g international business  neglects other countries and activities than others their impact on the home country because of home with respect to the firm’s market surroundings competitiveness and vice versa© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 22
  23. 23. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the Uppsala model Model Representative Principal contents Major limits of the model scholars of the model Year of  Publication Uppsala Carlson 1966  due to a lack of  physical distance is perceived Model M d l Forsgren & F foreign f i market k t differently by operating managers diff tl b ti Johanson, knowledge firms  panel focus on large Swedish Johanson & internationalize firms Wiedersheim incrementally from y  restricted to the initial stages of g both 1975 physically and internationalization culturally close foreign  reactive character leaving little business market to room for entrepreneurial choice more di t t countries distant ti  h d t apply f very small fi hard to l for ll firms  stepwise and orderly or very large MNE utilization of outward- g g going international business operations© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 23
  24. 24. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the Uppsala model Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Uppsala ‘psychic distance’  internationalization is not Model Johanson & is defined in terms always linear and a Vahlne 1977 of factors such as continuous process, firms differences in have the opportunity to recall language, culture language culture, their foreign engagement political systems  the concept concentrates on etc. experimental learning through  focus on commitment decisions but experience, ignores imitative learning and knowledge, and the phenomenon of new learning ventures born global© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 24
  25. 25. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the network approach Model Representative Principal contents Major limits of the model f scholars of the model Year of Publication Network Johanson &  assumption that a  empirically hard to test due Model Mattson firm s firm’s changing to the complexity of 1988 internationalization international networks and Kogut & situation their influencing variables Zander 1993 (international  need for industry-specific Hohenthal business success insights which is difficult to 2001 or failure) is a result realize from an ‘outsiders Björkman & of its positioning in perspective’ Forsgren a network of firms 2000 or institutions and their connections to each other© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 25
  26. 26. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the network approach Model Representative Principal contents Major limits of the model f scholars of the model Year of Publication Network Hakansson &  networks are a set  tends to focus on oligopoly Model Johanson of relationships markets and rather larger firms 2001 between suppliers,  deemphasizes opportunistic Matthews manufacturers, behavior of the network 2002 merchandisers and partner customers within  research results (e.g., long-term business through case studies) are hard relations to generalize; predictions tend  knowledge transfer to be vague within the networks has particular importance© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 26
  27. 27. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the network approach Model Representative Principal contents Major limits of the model f scholars of the model Year of Publication Network Johanson &  competitive  empirical research tends to Model V hl 2003 Vahlne advantage through supply ‘spotlights’ of network spotlights dynamic structures capabilities  longitudinally fact finding fostered in research is expensive and networks time consuming  emerging global  further research concerning economy as ‘firms repositioning in the networks of network over time’ through time interlinked firms longitudinally research necessary© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 27
  28. 28. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the international new venture(born global), entrepreneurial, and time concepts Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Inter- Oviatt &  rapid  concepts tend to focus on national Mc Dougall internationalization small firms New 1994, 2000 after inception  research tends to focus on the Venture Jones & fostered by the owner or key decision maker (Born Coviello 2002 2002, entrepreneur s entrepreneur’s  model is influenced by Global), 2005 behavior (risk sociological, psychological and Entrepren- Zahra et al. awareness, business aspects, which leads eurial and 2000 innovativeness and to an enormous complexity and Time managerial lacking systematic Concepts competence)© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 28
  29. 29. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the international new venture(born global), entrepreneurial, and time concepts Model Representative Principal contents Major limits of the model scholars of the model Year of Publication Inter- Sharma &  internationalization  empirical verification is difficult p national Blomstermo as a systems  hard to get a standardized and New 2003 perspective of the structured model Venture Bell et al. firm, environment and  length of time horizons is (Born 2003 entrepreneur interpreted differently Global), Hurmerinta-  success in Entrepren- Peltomäki international business eurial and  2003 is dependent upon p p Time Young et al. the embedding of the Concepts 2003 entrepreneur in cross- border institutional structures© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 29
  30. 30. Mario Glowik, Market Entry Strategies, First Edition (2009)A summary of principal contents and major limits of the international new venture(born global), entrepreneurial, and time concepts Model Representative Principal contents Major limits of the model scholars of the model  Year of Publication Inter- DiGregorio et  internationalization  impact of a particular event of national al 2008 al. is not always a time during internationalization New Gabrielsson et linear and forward process is difficult to prove Venture al. 2008 going process but  role of individuals have to be ( (Born rather highly g y analyzed in conjunction with y j Global), dynamic and cyclical their networks Entrepren- as a reflection of eurial and time Time Concepts© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 30
  31. 31. Mario Glowik, Market Entry Strategies, First Edition (2009) International market I t ti l k t entry modes© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 31
  32. 32. Mario Glowik, Market Entry Strategies, First Edition (2009)E.P.R.G. scheme and marketing conceptsSource: adapted from Wind et al. (1973) Phase Phase Firm focus Management Marketing contents policy concepts Phase 1 Ph Ethnocentric Eth ti Home H Ethnocentric Eth ti Export E t market strategy marketing Phase 2 Polycentric y Target g Polycentric y International country strategy marketing Phase 3 Regiocentric Regional Regiocentric Multinational geographic strategy marketing focus on several target markets Phase 4 Geocentric Worldmarket Geocentric Transnational strategy marketing© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 32
  33. 33. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry decision process First step: Setting strategic priorities Four basic strategic determinants 1. Degree of hierarchical control 2. Market entry rapidity 3. Proximity to the market 4. Investment risk© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 33
  34. 34. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry decision process 1. Degree of hierarchical control Are tight or loose control mechanisms for foreign operations required? The answer should consider issues such as • protection of intellectual property rights, • strategic market importance, • degree of market experience, • local government regulation, and • the firm‘s resources (e.g., human or financial).© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 34
  35. 35. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry decision process 2. 2 Market entry rapidity Fast or delayed foreign market entry? The answer should consider issues such as • the need to follow a key customer, • the threat of fast technological product substitution substitution, • first mover advantages through a pioneer strategy, • latecomer advantages through delayed market entry entry, • intensity of competition, • huge investment costs requiring large sales volumes and volumes, • the risk of losing control due to hasty entry activity or incorrect partner selection.© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 35
  36. 36. Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry decision process 3. Proximity to the market Is close or distant market proximity necessary? The Th answer should consider i h ld id issues such as h • similar or different product design and service expectation of local customers, • market volume and growth forecasts, • transportation lead time and costs (e.g., bulky products), • desired local image building of the firm, • socio cultural socio-cultural issues difficult to evaluate from a distance, and • foreign government rules (e.g., import tariffs and, investment incentives).© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 36
  37. 37. Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry decision process 4. Investment risk Is the firm able to cope with the investment risk? The Th answer should consider i h ld id issues such as h • internal and external financial resources, • dept t d t to equity ratio, it ti • product margin, • time horizon of expected return on investment, ti h i f t d t i t t • expected reactions of local competitors, and • market forecast (turnover and margins). k tf t (t d i )© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 37
  38. 38. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode categorization Second step: Evaluation of market entry alternatives S d t E l ti f k t t lt ti 1. Contracting (market mechanism) 2. 2 Cooperation (h b id f C ti (hybrid forms) ) 3. Wholly owned subsidiary (hierarchy)© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 38
  39. 39. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode categorization 1. Contracting (market mechanism) • indirect export (goods and services), (g ) • direct export (goods and services), • licensing (intellectual know-how and property rights), • franchising (business concept), • contract manufacturing (goods and services), • management contract (intellectual, engineering and management know- how), and • turnkey contract (intellectual, engineering and management know-how).© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 39
  40. 40. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode categorization 2. Cooperation (hybrid forms) • strategic alliances and • international joint ventures. 3. Wholly owned subsidiary (hierarchy) • overseas branch network and • a wholly owned manufacturing subsidiary.© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 40
  41. 41. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes • Indirect d direct I di t and di t export t • Overseas branches • Contract C t t manufacturing f t i • Licensing • Franchising F hi i • Strategic alliances • International j i t ventures I t ti l joint t • Turnkey contracts • Management contracts M t t t • Wholly owned subsidiary© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 41
  42. 42. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Indirect and direct export • export: sale of g p goods or services outside the country of p y production • indirect exports: transactions to a domestic exporting company or to a domestic branch of a foreign importer • direct exports: relation with the customer abroad.© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 42
  43. 43. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Licensing • contractual transaction • there is an owner of knowledge assets (intellectual or industry know how) • ‘sells the right’ to use the assets • licensor transfers, but does not give up, the ownership of the know-how know how • the licensee - takes entrepreneurial risks - undertakes financial investments in facilities for material procurement, manufacturing, marketing, sa es a d d st but o o t e goods a d a u actu g, a et g, sales and distribution of the and services.© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 43
  44. 44. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Franchising • contractual agreement between a franchisor and usually many franchisees • sales of a proven business concept • franchisees: typically small business owners • right to commercialize goods or services under franchisor’s’ established brand name (market goodwill)© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 44
  45. 45. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Franchising • franchise system combines, - the advantages of research, and development activities - and economy of scale potentials offered by the franchisor with the local geographical knowledge, cultural sensitivity and entrepreneurial talents of the franchisee© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 45
  46. 46. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Contract manufacturing 1. outsourcing components (pre-assembly) 2. finished products (final-assembly) 3. complete manufacturing process (full-assembly) (original equipment manufacture (OEM))© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 46
  47. 47. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modesManagement contracts • a firm uses some of its personnel to assist a firm in a host country for a certain period of time against a specified fee • keep the operations going until local management is trained • an essential part of management contracts includes the qualifications of personnel in the host country© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 47
  48. 48. Mario Glowik, Market Entry Strategies, First Edition (2009)Mutual obligations of management contractsSource: adopted from Foscht / Podmenik (2005) Management contract cooperation Contracting fees Managed firm firm know-how know how© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 48
  49. 49. Mario Glowik, Market Entry Strategies, First Edition (2009)Mutual obligations of management contractsSource: modified from Foscht / Podmenik (2005) Contracting firm functions: Managed firm functions:  management responsibility  payment of fees  granting entrepreneurial know-how  take over of business risks  granting operational good-will  input of business objectives: financial, manufacturing, and human resources  serving network relations g  learning capabilities  share of experience© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 49
  50. 50. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Turnkey contracts T k t t • turnkey t k operation: a company designs, constructs, starts-up a project i a f i country ti d i t t t t j t in foreign t (e.g., building of a power plant) and qualifies local personnel • turnkey operation: attractive for firms with specific engineering and/or complex technological process know-how • the BOT (build, operate, transfer): variation of the turnkey operation • the firm operates the facility for a fixed period of time • during this operating period, the company earns back the investment, plus a profit© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 50
  51. 51. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Strategic alliances • agreements between two or more participating organizations to strengthen their mutual competitive p p position and to fulfill business objectives that are rather long term oriented j g • access of strategically relevant resources • formal difference compared to a j p joint venture: a strategic alliance is typically a non- g yp y equity cooperation (partners do not commit equity) and partner firms remain legally independent© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 51
  52. 52. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes Strategic alliances Main purposes of strategic alliance building 1. strategic alliances facilitate entry into a foreign market (partnership with a local firm) 2. an alliance, supposing it runs well, is a way to bring together complementary skills and assets 3. bundle access to similar customer segments 4. establish a technological industry standard© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 52
  53. 53. Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes International joint ventures • two or more legally independent organizations decide to undertake a common business and create a new enterprise as a legal entity • an equal joint venture: each party contributes the same amount of financial investment • a majority joint venture secures control of strategic decisions© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 53
  54. 54. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modes International joint ventures • same industry and similar value-added activities (horizontal joint venture) • different stages of the industry value-added chain (vertical joint venture) • diversified business activities (conglomerate joint ventures) • Definition of an international joint venture: - at least one parent organization is headquartered outside the venture‘s venture s country operation - the venture has a significant level of operations in more than one country© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 54
  55. 55. Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes Reasons for instability in international joint ventures 1. opportunistic behavior at least of one partner 2. management redirects strategic focus or changes key objectives 3 3. pa t e s e egot ate co t acts (e.g., on technology transfer or a age e t) partners renegotiate contracts (e g , o tec o ogy t a s e o management) 4. reconfiguration of the venture‘s ownership and control structures 5. uncertain managerial roles g 6. diverse cultural backgrounds of the partners 7. relationship with each p p parent company ( g , limitation of their authority) p y (e.g., y) 8. lack of mutual trust 9. major technological p j g product developments not noticed p© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 55
  56. 56. Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes Overseas branches • representative office or sales branch in the foreign target markets • the lowest form of financial involvement in the category of foreign direct investment.© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 56
  57. 57. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry modesWholly owned subsidiary • describes an enterprise that owns all of the capital invested abroad such as procurement, R&D, l R&D sales, or production f iliti d ti facilities • the firm either sets up a new operation (start-up or greenfield) in the foreign target country or it acquires an established firm • there are two different types of acquisitions: - horizontal acquisition: a firm acquires another firm in the same location of the industry chain - vertical acquisition: a firm acquires the supplier or distributor© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 57
  58. 58. Mario Glowik, Market Entry Strategies, First Edition (2009) Market entry modes Wholly owned subsidiary • acquisitions offer the firm the opportunity to develop capabilities and expertise by acquiring new knowledge from the acquisition partner • in contrast to acquisitions the establishment of a firm through a greenfield investment acquisitions, (foreign start-up) entails building an entirely new organization© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 58
  59. 59. Mario Glowik, Market Entry Strategies, First Edition (2009)Market entry mode grouping based on four decision determinants low degree of hierarchical control high high low indirect export contracting direct export licenses/franchising li /f hi i proxim to the market apidity contract manufacturing mark entry ra e management contracts turnkey contracts foreign direct mity ket strategic alliances t t i lli investment IJV overseas branch cooperation network manufacturing low high plant low l investment risk i t t i k high hi h© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 59
  60. 60. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:indirect export Market Entry Degree of Investment Proximity Strategy Potential entry rapidity hierarchical risk to the recommended for strategic risks mode control market the firm if Indirect high low low low  no experience in  dependency on export p foreign trade g agent’s expertise g p  rather simple  commission costs products with  divided loyalties of rudimental after middleman / agent sales service  trade barriers  new market  high potentials abroad transportation costs  compensation of in case of bulky low seasonal sales products in the home markets i th h k t© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 60
  61. 61. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:direct export Market Entry Degree of Investment Proximity Strategy Potential entry rapidity hierarchical risk to the recommended for strategic risks mode control market the firm if Direct high low low low  less experience  trade barriers export p in foreign trade g  high g  elementary pre- transportation and after sales costs in case of service bulky products  new market  language / potentials abroad cultural  compensation of challenges low seasonal sales  unfamiliar in the home market markets environment© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 61
  62. 62. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:licensing Market Entry Degree of Investment Proximity Strategy Potential strategic entry rapidity hierarchical risk to the recommended for risks mode control market the firm if Licensing high low low low  lack of financial  licensee may damage or organizational reputation resources  risk of technology gy  technological copy by licensee fast developing  royalty fees lower industries than value of  fast market entry technology transfer and penetration  limited experience desired curve/ economies of  foreign direct scale effects of licensor investment too  licensee becomes risky competitor© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 62
  63. 63. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:franchising Market Entry Degree of Investment Proximity Strategy Potential entry rapidity hierarchical risk to the recommended strategic risks mode control market for the firm if Franchising high low low low  economies of  franchisee may scale realization harm reputation p  fast market  partner’s entry and disagreements penetration over desired objectives  sales of a  foreign partner business concept selection instead of a single  financial stability product or service of the partner© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 63
  64. 64. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry mode:contract manufacturing Market Entry Degree of Investment Proximity Strategy Potential strategic risks entry rapidity hierarchical risk to the recommended mode control market for the firm if Contract medium low- low- medium  cost-  loss of manufacturing manufac- medium medium competitive p involvement and turing markets control  saving  reputation damage logistics cost (i.e., quality, (i e quality working  expansion conditions) of capacities  communication and product complexity penetration  know-how transfer to worldwide local firm  foster new competitor© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 64
  65. 65. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry mode:management contracts Market entry Entry Degree of Investment Proximity Strategy Potential mode rapidity hierarchical risk to the recommended strategic risks control market for the firm if Management medium medium medium medium  specified  foster potential contracts managerial g competitor p and/or  countries with technological uncertain local expertise governments  market entry policy and fragile when local legal environment government  lack of educated restrictions staff in the target expected country© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 65
  66. 66. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry mode:turnkey contract Market M k t Entry E t Degree of I D f Investment P i it St t t t Proximity Strategy Potential t t i P t ti l strategic entry rapidity hierarchical risk to the recommended for the risks mode control market firm if Turnkey medium medium medium medium  specific engineering  lack of qualified contract and complex human resource technological t h l i l pool i th t l in the targett process know-how country availability (i.e.,  relation with host building of an governments which environment friendly are usually located power plant or public in politically and water distribution economically and/or cleaning rather fragile facilities) ) countries© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 66
  67. 67. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:strategic alliance Market Entry Degree of Investment Proximity Strategy Potential entry rapidity hierarchical risk to the recommended for strategic risks mode control market the firm if Strategic medium low- low- medium  bundle of strategic  partner alliance medium medium resources selection  mutual  know-how strengthening of transfer competitive position  opportunistic through behavior complementary  reputation skills damage  set of  synergy effects technological below industry t d d i d t standards expectation t ti© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 67
  68. 68. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:international equity joint venture Market M k t Entry E t Degree of I D f Investment P i it St t t t Proximity Strategy Potential t t i i k P t ti l strategic risks entry rapidity hierarchical risk to the recommended mode control market for the firm if Inter- medium medium medium medium  risk sharing  partner selection national  combined  know-how transfer equity market entry  opportunistic behavior of joint  joint activities the partner venture (e.g., R&D,  unclear ownership marketing) ) structures create  economies of confusion scale  risk of unbalanced  combination of efforts of the partner firms complementary  minor synergy effects resources and  partner firm may y skills become competitor© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 68
  69. 69. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:overseas branch network Market M k t Entry D E t Degree of I f Investment P i it St t t t Proximity Strategy recommended d d Potential P t ti l entry rapidity hierarchical risk to the for the firm if strategic risks mode control market Over- low high high high  experience in  unfamiliar seas international business environment and branch  large foreign market marketing policies network  complex products  increased  differentiation strategy by communication local service/ consulting l l i / lti andd  advanced after-sales coordination network necessary  investment  proximity to local volume customers and their  language and design and communication cultural preferences challenges© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 69
  70. 70. Mario Glowik, Market Entry Strategies, First Edition (2009)An overview of strategic decision determinants of the market entry modes:wholly owned manufacturing plant Market Entry Degree of Investment Proximity Strategy Potential strategic entry rapidity hierarchical risk to the recommended for the risks mode control market firm if Wholly- low high high high  advanced  unfamiliar owned experience in environment and manu- international business work ethics facturing  local cost  coordination plant advantage complexity  subsidies or tax  legal aspects incentives  investment volume  large foreign a ge o e g  language a d a guage and market potentials cultural challenges  heavy and bulky  severe response products of local firms© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 70
  71. 71. Mario Glowik, Market Entry Strategies, First Edition (2009) Case studies© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 71
  72. 72. Mario Glowik, Market Entry Strategies, First Edition (2009)European television set market 1990-2011 without Turkey and Russia (sales inmillion units – 2009 and 2011 are forecasts)Source: DisplaySearch (2008) and market research by the author 40 35 30 M on TV Units 25 hipments 20 Sh illio 15 10 5 0 1990 1998 2003 2005 2007 2009 2011 CRT 28 36 37 26 10 3 0,5 PDP 0 0 0,4 2 3 5 6 LCD 0 0 1 9 26 34 38 Projection 0 0,5 0,3 0,3 0,1 0 0 OLED 0 0 0 0 0 0,1 1 Year© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 72
  73. 73. Mario Glowik, Market Entry Strategies, First Edition (2009) East European television set market volume including the non-Asian part of Turkey and Russia segmented by major technologies in million units (2007 record and 2008-2012 forecast) Source: Di l S S DisplaySearch, 2008 hMillion Units 20 18 16 14 12 PDP TV 10 LCD TV 8 CRT TV 6 4 2 0 2007 2008 2009 2010 2011 2012© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 73
  74. 74. Mario Glowik, Market Entry Strategies, First Edition (2009)Conglomerate diversification structure of Samsung (status April 2008)Source: Author based on various company documents, verified by Park, N. Samsung Group Chairman: Mr. Lee Chairman Office Machinery & M hi Electronics El t i Trade T d & Financial Fi i l Nonprofit N fit Chemical Industries Industries Services Services Organizations© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 74
  75. 75. Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on various company documents (status April 2008) Machinery & Chemical Industries Samsung S Samsung S Samsung Sams ng Samsung Samsung Total Samsung Heavy Fine BP Techwin Petrochemicals Petrochemicals Industries Chemicals Chemicals© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 75
  76. 76. Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on various company documents (status April 2008) Electronics Industries Samsung S Samsung S Samsung S Samsung S Samsung S Samsung S Electronics SDI Electro- Networks Corning SDS Mechanics Precision Glass© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 76
  77. 77. Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on various company documents (status April 2008) Trade & Services The Shilla Th Shill Samsung Samsung Cheil Samsung Cheil S1 Hotel &Corporation Engineering Industries Everland Communications Corporation Resorts© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 77
  78. 78. Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on various company documents (status April 2008) Financial Services Samsung S Samsung Fi S Fine Samsung S Samsung Sams ng Samsung Samsung Life & Marine Investment Card Venture Securities Insurance Insurance Trust Investment© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 78
  79. 79. Mario Glowik, Market Entry Strategies, First Edition (2009)Strategic business units of SamsungSource: Author based on various company documents (status April 2008) Nonprofit Organizations Samsung S Samsung S Samsung SSamsung Samsung HR Samsung Economic Advanced Welfare Samsung Samsung Medica Development Foundation Research Institute of and Ho-Am Lions Press Center Center of Culture Institute Technologygy Foundation© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 79
  80. 80. Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Group net sales 1999-2007 (2007 forecast)Source: Annual Reports Samsung Group - Net sales 200 lars 150 lion Doll 100 Bill 50 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 80
  81. 81. Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Group net income 1999-2007 (2007 forecast)Source: Annual Reports Samsung Group - Net income 15 lars 10 0 Billion Doll 5 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 81
  82. 82. Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Electronics net sales 1999-2007Source: Annual Reports Samsung Electronics - Net sales 150 125 lars 100 llion Doll 75 50 Bil 25 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 82
  83. 83. Mario Glowik, Market Entry Strategies, First Edition (2009)Samsung Electronics net income 1999-2007Source: Annual Reports Samsung Electronics - Net income 15 ars lion Dolla 10 5 Bill 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year© 2009 Oldenbourg Wissenschaftsverlag Munich, Germany 83

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