International Expansion Entry Mode Analysis for Sprint Corporation

This report examines five international expansion entry modes: exporting, greenfield ventures, licensing and franchising, acquisition, and strategic alliances. It details the advantages and disadvantages of each mode, considering factors like risk, cost, and control. The report then applies this knowledge to a case study of Sprint Corporation, recommending acquisition as the most suitable strategy for international expansion, given the company's goals of market entry, brand image enhancement, and business consolidation. The analysis considers Sprint's position in the telecommunications market, the benefits of acquisition for consolidation, and the potential for strengthening its core business through international expansion. The report concludes by emphasizing the strategic importance of acquisition for Sprint's growth and market presence.

Running head: INTERNATIONAL EXPANSION ENTRY MODE
International Expansion Entry Mode
Name of the student
Name of the University
Author note

1INTERNATIONAL EXPANSION ENTRY MODE
The five international expansion entry mode are exporting, greenfield venture, licensing
and franchising, acquisition and strategic alliances. Exporting proves to be the easiest way of
entering the international market and it is achieved by the selling of products along with services
in that of the foreign countries (Saylordotorg.github.io., 2018). In the event of exporting, the
firms should give attention on the process of labeling along with packaging. Greenfield venture
is indicative of establishment of a wholly owned subsidiary and it can help a firm in getting
above average return. For facilitating the process of Greenfield venture the firm has to acquire
the knowledge along with the expertise pertaining to the existing market. The costs prove to be
high on account of the fact that a new business has to be established within that of a new country.
An advantage of Greenfield venture is that it can help a firm in retaining control of all the
operations. Licensing and franchising refers to legal contract between the two parties in which
the licensor provides the licensee with the right of producing and selling of goods. Licensing
enables an enterprise in making income from different kinds of intellectual property. Franchising
is a new marketing concept that helps in the distribution of goods along with services.
Franchising refers to a business relationship within which franchisor assigns to the independent
people the right of distribution of the franchisors goods along with services. Strategic alliance
refers to a contractual agreement in between two enterprises that stipulates that the parties should
co-operate in a manner that can help in achieving of a common purpose. For determination of the
appropriate alliance approach the firm should be capable of deciding about the value that the
partner can bring pertaining to tangible along with intangible aspect (Youtube.com., 2018). The
partnership can prove to be valuable if they have a reputable brand name and in the event of
them having relationship with that of the customer with whom the firm wants to get access to.
Acquisition refers to a transaction with the help of which a firm is able to gain control over that

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of another firm by buying the stock. In the present age of globalization, cross-border acquisitions
have increased at a dramatic pace (Jiang, Holburn & Beamish, 2016). The laws of the target
country should be examined for a firm to decide whether any acquisition strategy should be
pursued.
The advantages of exporting are that it has low risk and aids in fast entry. The
disadvantage of exporting is that it has negative environmental impact on account of the
transportation. The advantages of licensing are that it is of low cost and the risks are low. The
disadvantages are on account of the fact that in the event of licensing the legal along with
regulatory environment should be sound (Yoder, Visich & Rustambekov, 2016). The advantage
of Greenfield venture is due to the fact that it can help in gaining that of local market knowledge
and the disadvantages are due to the fact that it has high risk owing to the unknown factors. The
advantage of acquisition is that it can help in fast entry and the operations are known. The
disadvantages are its high cost along with integration issues. The advantage of strategic alliances
is that the shared costs results in the reduction of the investment needed and the disadvantage is
that it bears a higher cost as compared to exporting and there are integration problems in between
the different corporate cultures (Mohr & Batsakis, 2018).
Being an employee of the Sprint Corporation, I will recommend my employer that the
expansion strategy that the firm can taken recourse to is that of acquisition. Sprint Corporation
refers to an American telecommunications company that helps in providing wireless service to
the common people. It acts as an internet service provider to the people of United States. The
consolidation of the business of Sprint Corporation can make acquisition the right international
expansion strategy for the firm (de Almeida, 2015). It can help in the expansion of the firm and
help many people in knowing about the activities of the firm. It can help the company in entering

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onto a new geographic market and it can help in the strengthening of the core business of the
company. According to me, the process of acquisition can aid Sprint Corporation in the process
of consolidation with that of a more mature industry. International expansion by taking recourse
to the process of acquisition can help the firm in increasing its brand image and consolidate its
business in other countries.

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References:
de Almeida, S. F. (2015). Strategy for SME's International Expansion-Selection and Penetration
of Foreign Markets. The case of Castro, Pinto & Costa and OleoTest®.
Jiang, G. F., Holburn, G. L., & Beamish, P. W. (2016). The spatial structure of foreign
subsidiaries and MNE expansion strategy. Journal of World Business, 51(3), 438-450.
Mohr, A., & Batsakis, G. (2018). Firm resources, cultural distance and simultaneous
international expansion in the retail sector. International Business Review, 27(1), 113-
124.
Saylordotorg.github.io. (2018). International Expansion and Global Market Opportunity
Assessment. Retrieved from
https://saylordotorg.github.io/text_international-business/s12-international-expansion-
and-gl.html
Yoder, S., Visich, J. K., & Rustambekov, E. (2016). Lessons learned from international
expansion failures and successes. Business Horizons, 59(2), 233-243.
Youtube.com. (2018). International Marketing : Introducing Modes of Entering in International
Business. Retrieved from https://www.youtube.com/watch?v=oGgQHzxV6Z8