Questions and Answers
What is the most prevalent mode combination used by companies to enter or develop activities in foreign markets?
Licensing and a joint venture
What are the four different forms of multiple modes?
Unrelated, segmented, complementary, and competing
What is dual distribution?
A mode of entry where a manufacturer exercises better control over the representatives
What is an example of indirect competition?
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What kind of support might be provided by segmented multiple modes of competition?
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Study Notes
- Multiple modes are used by companies to enter or develop activities in different foreign markets.
- The most prevalent mode combination is licensing and a joint venture.
- There are four different forms of multiple modes: unrelated, segmented, complementary, and competing.
- Dual distribution enables the manufacturer to exercise better control over the representatives.
- Segmented multiple modes of competition exist in the foreign market, where firms compete by using different modes to target different segments of the market.
- Competing modes may include head-on competition, where the entrant firm attempts to take over the export market of an existing, local independent distributor, and indirect competition, where the entrant firm competes by selling the same product to different segments of the market.
- Segmented multiple modes of competition are not directly supportive of each other, but there are many ways in which indirect support might be provided.
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