778-Som-Lalit Institute Of Business Management - Gujarat ...

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Modes of Entry 1. Equity International Joint Ventures Equity International Joint Ventures (EIJV) is defined as ―a separate legal organizational entity representing partial holdings of two or more parent firms, in which the headquarter of at least one is located outside the country of operations of the joint venture‖ (Zeira and Newburry, 1999). Equity International Joint Ventures (JV‘s) are a very popular entry mode, especially in the Middle East & Asia/Pacific area. The main idea after an EIJV is that transaction costs of entering in any foreign market are much lower than establishing a wholly owned subsidiary. The entering firm is able to benefit from the local partners knowledge of the host Country‘s competitive conditions, culture, language, political and business systems. 76 | P a g e
The local partners see a joint venture as an attractive mode to profit from the EIJV partner‘s specific competitive advantages. It is this complementarily of interest that makes the EIJV appealing especially in markets that are determined by high industry specific market barriers. Another important advantage of EIJV is the possible sharing of costs that may be needed for research and development. Despite these advantages, EIJV‘s do have some serious drawbacks. A firm entering a foreign market, through an EIJV, risks giving control of its technology to his partner. This technology and know-how could be a former competitive advantage, and may arise the risk of opportunistic behavior by a joint venture partner, who does not share this knowledge within the JV and only want to benefit from the others technology as a free-rider. One more disadvantage of EIJV is objectives of the EIJV partners are different. It is difficult to reach agreements on how to operate, fund, and benefit from the venture. 2. Greenfield Entry In the hierarchical model of market entry modes, the Greenfield entry can be considered into the high equity based entry modes, because it requires a major resource assurance in the overseas location (Pan and Tse, 2000). That recourse promise usually refers to the set up of a new plant, requiring involvement of capital, human resources and a transfer of the firm‘s know-how and/or technology. Greenfield entries can be categorized under the term of wholly owned subsidiaries, where the firm owns 100 percent of the stock. A wholly owned subsidiary is main two types. By acquisition (to acquire an established firm), or By Greenfield entry (the setting up of a new venture). The common goal behind acquisitions and Greenfield investments is combination of firm‘s specific advantages with other assets available in the foreign country. The difference is that a Greenfield entry uses resources of the investor and combines them with assets acquired locally, whereas an acquisition uses primarily assets of local firms and combine them with the 77 | P a g e
Page 1 and 2:
A GLOBAL COUNTRY REPORT ON QATAR Su
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ACKNOWLEDGEMENT We take this opport
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Qatar pharmaceutical industry :Qata
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stand for around two-thirds of the
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these factors are playing in our ad
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Pharmaceutical industry today The I
Page 13 and 14:
According to recent reports in The
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• They also signed Arab concord p
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• There is low investment in inno
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• The increase of innovative cons
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Threats: 1) Threat from low cost co
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As long as the municipality‘s sup
Page 25 and 26: Feasibility Study on the alternativ
Page 27 and 28: The Museum of Islamic Arts, which c
Page 29 and 30: famous as the Dawlat Qaṭar, is an
Page 31 and 32: executes needs for new business opp
Page 33 and 34: Energy Profile Qatar Before the eme
Page 35 and 36: investment from Qatar in crude stor
Page 37 and 38: • Ministry of Power and Central E
Page 39 and 40: According to Crisil report (June 20
Page 41 and 42: Developments in Transmission Power
Page 43 and 44: companies. Several companies have a
Page 45 and 46: for IPPs (which are feasible for co
Page 47 and 48: EMERGENCY SERVICES The ambulance se
Page 49 and 50: MEDICAL R&D IN QATAR Currently, the
Page 51 and 52: Legal The main government hospitals
Page 53 and 54: MEDICAL TRAVEL Medical tourism, tre
Page 55 and 56: CHCs are run by community based org
Page 57 and 58: 5) Restaurant business in Qatar Cur
Page 59 and 60: Doing Business in Qatar In keeping
Page 61 and 62: Taxation Registered Entities The Ta
Page 63 and 64: As with all Arab peoples, the ritua
Page 65 and 66: ‗Al Jalsa‘ It‘s love that we
Page 67 and 68: Service Excellent service paired wi
Page 69 and 70: Joint ventures with various restaur
Page 71 and 72: Qatar sees sport as a key way in wh
Page 73 and 74: A development in sports can improve
Page 75: Essentials For An Investor Main in
Page 79 and 80: HOW TO ENTER IN QATAR? From the abo
Page 81 and 82: Sports awareness, education and cul
Page 83 and 84: SWOT Analysis of Infrastructure ind
Page 85 and 86: The other 9 stadiums will be state
Page 87 and 88: MEED construction analyst Andrew Ro
Page 89 and 90: OVERALL COMPARISON WITH INDIA Every
Page 91 and 92: Official Apathy has also harmfully
Page 93 and 94: A sporting culture cannot take root
Page 95: Direct labor conditions:- The o
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