International business

You are assigned a company and a host country of interest. You must now engage in new product development and/or new market development in your given host country. The project is time warner in Argentina.I want you to write about Mode of Entry. Explain and support your rationale.here is the analysis of the project :SWOT Analysis Strengths Warner Brothers was the #2 film studio in the global box office receipts in 2016 #1 or #2 film studio in domestic box office receipts for eight of the past 10 years #1 or #2 film studio in global box office receipts for nine of the past 10 years.HBO provides local language original programming and U.S. television programming by other production studiosDeveloping programming specifically tailored for local audiences through its global network of production companiesFocuses on building global franchises based on existing intellectual property that it can monetize across its businesses and distribution channelsWeaknesses Time Warner recently expanded HBO in Argentina in December 2016; making it a fairly new market entryOpportunitiesArgentines have the highest rates of movie viewing in the worldHave high-level proposals that are intended to promote access to online services and entertainment content across national bordersExpansion of their services and digital content into more countries Threats There are already superhero movies in the worldOther U.S. movies in circulation Competition from other TV networks, premium pay television services, local television stationsCompetition from studios and television production groups and independent producersPiracy of their digital contentOther countries limiting the ability to exploit and enforce their exclusive right of intellectual property outside the U.SThese
are six different ways to enter a foreign market
1.Exporting – most common first step for many
manufacturing firms
vlater, firms may switch to another
mode
2.Turnkey
projects –
the contractor handles every detail of the project for a foreign client,
including the training of operating personnel
vat completion of the contract, the
foreign client is handed the “key” to a plant that is ready for full
operation
3.Licensing – a licensor grants the rights to
intangible property to the licensee for a specified time period, and in return,
receives a royalty fee from the licensee
vpatents, inventions, formulas,
processes, designs, copyrights, trademarks
4.Franchising – a specialized form of licensing
in which the franchisor not only sells intangible property to the franchisee,
but also insists that the franchisee agree to abide by strict rules as to how
it does business
vused primarily by service firms
5.Strategic
Alliance or Joint Ventures with a host country firm – a firm that is jointly owned by
two or more otherwise independent firms
vmost joint ventures are 50:50
partnerships
6.FDI (including wholly owned subsidiary – the firm owns 100 percent of the
stock)
vset up a new operation (Greenfield)
acquire
an established firm (M&A)

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