How Do Companies Go Global : Choices and Issues between Entry Strategies

This chapter is from the book "Conquering Global Markets: Secrets from the World's Most Successful Multinationals" which presents the findings of one of the largest research projects undertaken of its type. Senior executives from fifty multinational companies from sixteen countries were interviewed to understand the issues, risks, challenges and key success factors of how companies have globalized using greenfield investment, joint ventures and alliances as well as mergers and acquisitions. This chapter discusses the historical routes and factors influencing the market entry mode choices made. Historical patterns of internationalization are discussed including the Uppsala Theory, networking theory, "born global", and early internationalizer theories. A fifth pattern is identified and discussed, the "opportunistic globalizer". Those interviewed for the research indicated that four factors heavily influenced their choice of entry mode. Those factors were control, speed, local market awareness, and resource allocation all of which are discussed in depth. Further factors that can influence market entry choice are also discussed and include: openness to inward investment, corruption, competition, risk markets, and intellectual property rights are also discussed. Quotes from participants are used throughout the chapter and a case study highlighting the expansion profile of Teva Pharmaceuticals is summarized