Troy University The International Entry Mode Paper

User Generated

Mlg1999

Business Finance

Troy University

Description

1.Write about the International Entry Mode (if applied currently) of A.O Smith Corporation

2.350-400 words

3.cite and reference ALL sources in correct APA format;

4.be a paper, not a PowerPoint or Keynote presentation

5.write in conjunction with the link material given

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Choice of International Mode of Entry What’s the best solution? Situation Optimal Solution The firm has no foreign manufacturing expertise and requires investment only in distribution. Exporting © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–1 Choice of International Mode of Entry What’s the best solution? Situation Optimal Solution The firm needs to facilitate the product improvements necessary to enter foreign markets. Licensing © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–2 Choice of International Mode of Entry What’s the best solution? Situation Optimal Solution The firm needs to connect with an experienced partner already in the targeted market and to reduce its risk through the sharing of costs. Strategic Alliance © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–3 Choice of International Mode of Entry What’s the best solution? Situation Optimal Solution The firm is facing uncertain situations such as an emerging economy in its targeted market. Strategic Alliance © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–4 Choice of International Mode of Entry What’s the best solution? Situation Optimal Solution The firm needs rapid cross-border access to new international markets Acquisitions © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–5 Choice of International Mode of Entry What’s the best solution? Situation Optimal Solution The firm’s intellectual property rights in an emerging economy are not well protected, the number of firms in the industry is growing fast, and the need for global integration is high. Wholly-owned Subsidiary © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–6
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Explanation & Answer

Attached.

Running head: INTERNATIONAL ENTRY MODE

International Entry Mode
Name
Institution

1

INTERNATIONAL ENTRY MODE

2

International Entry Mode
AO Smith corporation deals in the manufacture and marketing of commercial and
residential electric and gas water heaters, tanks, boilers and water treatment products, operating
through its North American and Rest of the World segments. The company’s growth and
international expansion to areas such as China, Europe and India have been based on acquisitions
and sales expansion through exportation of its products to regions experiencing high demand.
In a bid to achieve rapid cross-border access to new international markets, AO Smith
invested in the acquisitions of companies in the targeted markets to enhance speedy entry and the
delivery of the product to meet consumer needs. The company entered the US market through
the acquisition of Aquisana, an organization that was involved in the water treatment systems in
the United States. The company also acquired Hague quality water international company in
2017 to further expand its operations and growth in the United States market. The company has
also entered into strategic alliances with well-established US firms such as Lowe to establish
further and expand its operations and activities in the United States market. Strategic
part...


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