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Entry Mode Strategies for Circustrix: Joint Ventures, Franchising, and Direct Investment

   

Added on  2023-06-15

14 Pages532 Words123 Views
Entry mode
strategies

Choice of entry
modes Selected cities will be the London and Paris.
Three mode of entries will be chosen (Laufs &
Schwens, 2014).
Joint ventures.
Franchising.
Direct investment.

Advantages of joint
ventures
Less association of risk for Circustrix.
Less investment required for them (Sun & Lee,
2013).
Having local partner is an advantage to
determine local needs.
Leveraging positive brand value of local partner.

Disadvantages of
joint ventures
Clash of organizational cultures between
Circustrix and the local partner.
Risk of unreliable local partners.
Negative reputation of the local partners.
Reduction in profitability for Circustrix due to the
share of local partner.

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