Entry Mode Essay

Before the ABC Limited enters India, they should choose a suitable entry mode (see appendix table 1). However, to enter other country has pros and cons. Just like Dunning’s eclectic theory mentioned that four factors affect the different choice of entry mode: ownership advantages, location advantages, internalization advantages and other factors, which are need for control, resource availability and global strategy (Griffin and Pustay, 2013). In appendix, the map 1 shows India is a big country that good for trade and start business, its own good prospects for market development. It also means India owns more population market to help enter manufacturing industry because in this kind of industry always needs many people to manufacture. And the import and export trade is more convenient.

Therefore, the best market entry strategy is foreign direct investment, and the joint venture of that strategy is the first choice. “A joint venture is a special type of strategic alliance that have two or more firms join together to create a new business entity” (Griffin and Pustay, 2013). It also means through the joint venture,

Moreover, the Plan clearly mentions FDI should be a key policy imperative to help achieve the desired growth. It goes on to project an abysmally-low rate of 5% growth in a scenario of ‘policy logjam’” (Kapadia, 2015). Therefore, the joint venture has relative policies support and have more choice about foreign partner. The foreign partner can bring more cooperation opportunities for ABC Limited and to play the advantages of cooperation, to reduce the high exposure to political