Dissertation Chapter: Market Entry Strategy for Haagen-Dazs in Iran

This dissertation chapter's literature review examines potential market entry strategies for Haagen-Dazs to enter the Iranian market. It explores various options, including exporting (direct and indirect), licensing, joint ventures, and partnerships. The review references key academic sources to evaluate the advantages and disadvantages of each strategy, considering factors such as cost, risk, and control. The analysis suggests that partnerships, particularly with local businesses like restaurants and coffee shops, could be the most suitable approach for Haagen-Dazs, offering local market knowledge and the ability to navigate cultural differences. The review also touches upon wholly owned subsidiaries as an alternative, highlighting the benefits and challenges of establishing such a presence in Iran.

Market Entry strategy
(Dissertation Chapter - Literature Review)

Discuss the theoretical market entry strategies available to Haagen-Dazs to enter Iran Market:
According to Morschett, Schramm-Klein and Swoboda (2010) entry of an organization
into overseas market is a major decision and there are a variety of options to make a valid
decision, however, some factors such as cost of entry mode, risk and the degree of control affects
the selection of entry strategy. Here, Haagen-Dazs, an leading ice cream brand based on New
York is looking for entering Iran Market, therefore, variety of options are available. As defined
by Johnson and RegnŽr (2013) exporting is a way to enter in new market via adopting a function
of international trade. Direct and indirect both, can be the ways to export in the market,
nonetheless company need to place agents and distributors it adopts direct exporting method.
Being a dealer of luxuries ice-cream products, Haagen-Dazs can enter in Iranian Market whereby
it can open exclusive shops, stores, tea lounge to sell its products. This is going to be an
expensive method of entry but will be helpful in creating brand image in Iran Market. The
company can go in Iran market via entering through indirect exporting methods i.e. seeking
products via hypermarkets. To the view point of Rodríguez-Escudero (2011) licensing is a
method in which firm transfers own rights to another firm for using products or services, it is
given specifically for marketing or production. This is useful strategy when license has a large
market share in the country where one wants to enter. The method is not useful for Haagen-Dazs
and it creates risk of losing ownership. Killing (2012) defines joint ventures as a specific form of
partnership in which two companies work together in a particular market. The major advantages
of JV is that companies can use resources in an effective manner and jointly share the risk in new
market. Joint ventures with small ice-crème companies in Iranian market which further helps in
capturing the market share of existing companies.
According to the view point of Tsai and Eisingerich (2010) partnership becomes
necessity for entering into foreign markets, however, it can be in the forms of co-marketing
arrangement and joint selling agreements. The major advantages of using partnership strategy is
in understanding the market and operating well, where huge cultural differences from home
country. The above cited method is the most suitable for successful entry in Iranian market in
which Haagen-Dazs can make partnerships with restaurants, coffee shops, airlines and
entertainment companies in Iran. Using this method, the cited company can have local market
knowledge and can make chose the suitable target market while assessing needs and wants. On

the other hand, wholly owned subsidiary is another form of market entry in which existing firms
can be completely owned by Haagen-Dazs in Iranian market. The use of such method can be
advantageous in establishing common operating processes of manufacturing and distribution of
its ice cream brand in Iranian market (Market entry strategies, 2016). However, this will be an
expensive undertaking and takes huge time to create relationships with suppliers and customers
along with facing issues in fining employees to manage subsidiaries.
REFERENCES
Johnson, G., and RegnŽr, P., 2013. Exploring Strategy Text & Cases. Pearson Higher Ed.
Killing, P., 2012. Strategies for joint venture success (RLE international business) (Vol. 22).
Routledge.
Market entry strategies. 2016. [Online]. Available through: < http://www.tradestart.ca/market-
entry-strategies>. [Accessed on 13th July 2016].
Morschett, D., Schramm-Klein, H. and Swoboda, B., 2010. Decades of research on market entry
modes: What do we really know about external antecedents of entry mode choice?.
Journal of International Management. 16(1).pp.60-77.
Rodríguez-Escudero, A.I., 2011. Speed or quality? How the order of market entry influences the
relationship between market orientation and new product performance. International
Journal of Research in Marketing. 28(2). pp. 145-154.
Tsai, H.T. and Eisingerich, A.B., 2010. Internationalization strategies of emerging markets
firms. California Management Review. 53(1). Pp.114-135.