What is one potential benefit of taking on higher commitment levels in global market entry?
Understand the Problem
The question is asking about the potential benefits of higher commitment levels in entering global markets. It provides multiple-choice options to identify a specific benefit.
Answer
Higher commitment levels offer better control and faster market penetration.
By taking on higher commitment levels in global market entry, businesses can gain more control over operations and access to resources in the new market, thus potentially leading to faster market penetration and stronger brand establishment.
Answer for screen readers
By taking on higher commitment levels in global market entry, businesses can gain more control over operations and access to resources in the new market, thus potentially leading to faster market penetration and stronger brand establishment.
More Information
Higher commitment in market entry, such as establishing a subsidiary, allows businesses to better enforce strategic control and coordination. This can include better brand management, supply chain operations, and adaptability to market changes.
Tips
A common mistake is assuming that higher commitment modes are risk-free. It's important to weigh the potential for higher returns against increased cost and risk exposure.
Sources
- Chapter 7: Market Entry Strategies - fao.org
- Global Market Entry Modes - Business Strategy and Policy Study Guide - library.fiveable.me
