Would you like to own an all-electric car? Do you think there is a viable market for such a product?
Provide secondary data to research the viability of selling electric cars profitably. Utilize some of the sources mentioned in chapter 10 of our e-book. Try to determine the population of electric-car buyers.
Provide a research report based on your findings.
Firms all over the world are internationalizing in highly increasing speed, and thus the selection of a proper entry mode in a foreign market may have significant and far reaching consequences on a firm’s success and survival. In the selections of a suitable entry method, firms are significantly influenced by situational factors and key dimensions. The influencing factors include various factors such as country risk, socio-cultural distance, firm specific factors, government regulations, and international experience. The key dimensions differentiating market entry modes are the varying levels of management control, barriers to entry, commercial and political risks, equity investment, rapidity, level of resources commitment to the foreign market, and flexibility that each mode posses and also the evaluation of competitors’ entry methods. Driscoll analyzed the characteristics of export, contractual and investment entry modes through the five aspects namely control; dissemination risk; resource commitment; flexibility and ownership. Driscoll explained each of the characteristics as follows : Control refers to that extent of a firm in governs the production process, co-ordinate activities, logistical and marketing and so on. Dissemination risk refers to the extent to which a firm’s know-how will be expropriated by a contractual partner. Resource commitment refers to the financial, physical and human resources that firms commit to a host market. Flexibility assesses that whether a firm can change the entry modes quickly and with low cost in the face of evolving circumstances. Ownership refers to the extent of a firm’s equity participation in an entry mode. In Erramilli & Rao (1993), it is suggested that to conceptualize a firm’s desired level of different mode characteristics without considering its actual entry mode used, the efficacy of mode choice models would be improved. Based on this advice, Driscoll (1995) introduced a dynamic mode choice framework as shown in table 2 above. He believes that “a diverse range of situational influences that could bear on a firm’s desire for certain characteristic of mode choice”. Some factors would influence a firm to choose a desired entry mode. He also considers the gap between desired model and actual one and takes alternative mode characteristics into account when a firm chooses foreign market entry mode. Driscoll’s study emphasises that there is no optimal foreign market entry modes under all conditions. Therefore, a firm cannot just consider an institutionalizing mode; it needs to consider the characteristics of modes, the firm factors, environmental factors and other factors when it choos>GET ANSWER