Analyzing Entry Modes and Strategies for Expanding into Foreign MarketsQuestion 1:What entry approaches would you advise Ravi and Keith to use to gain entry intothe Turkishsports drink market and why?Answer:Ravi and Keith should useDirect Investment approachto gain entry in the Turkishmarket. The Interbil Company, a host company, offered themJoint Licensing Approachbut thereare some risks like as they run their own business of beverages they would not want to influenceZip-6 over their Sport Drink. So the dream of Ravi and Keith that they want potential expansiontarget would not be come true. InDirect Investment approachthey will invest to make aproduction unit in Turkey sothey can have 100 % ownership of their company and so they canrun the business toitsfull strengthenjoying 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 ofDirect Investment approachinTurkey which islisted below:Advantages:1. The Company has 100% ownership so it can run it according to its needs,2.It canmerger in the Turkishmarket,3.It canraise its investment and hence revenue.It can raise GDP of Turkey too.Disadvantages:1.Frequently changing regulations in Turkey may affect the company,2.The company may increase inflation in Turkey,Preview Mode
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