Analyzing Entry Modes and Strategies for Expanding into Foreign Markets

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Analyzing Entry Modes and Strategies for Expanding into Foreign Markets Question 1: What entry approaches would you advise Ravi and Keith to use to gain entry into the Turkish sports drink market and why? Answer: Ravi and Keith should use Direct Investment approach to gain entry in the Turkish market. The Interbil Company, a host company, offered them Joint Licensing Approach but there are some risks like as they run their own business of beverages they would not want to influence Zip - 6 over their Sport Drink. So the dream of Ravi and Keith that they want potential expansion target would not be come true. In Direct Investment approach they will invest to make a production unit in Turkey so they can have 100 % ownership of their company and so they can run the business to its full strength enjoying all the facilities provided by the government. Question 2 : What are some advantages and disadvantages of the approach you have chosen (above)? Answer: There are some advantages and disadvantages of Direct Investment approach in Turkey which is listed below: Advantages: 1. The Company has 100% ownership so it can run it according to its needs, 2. It can merger in the Turkish market, 3. It can raise its investment and hence revenue. It can raise GDP of Turkey too. Disa dvantages: 1 . Frequently changing regulations in Turkey may affect the company, 2. The company may increase inflation in Turkey,
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