In order to enter a new market, an entry strategy is always drafted to make sure the organization has entered the market through proper channel and can operate in an efficient & ideal manner. Generally, the entry strategies used by organizations are by exporting, joint ventures or by strategic alliance. However situation has to be carefully analyzed and examined to choose the right strategy for entering a new market. A firm like Cooper has to work out on various factors and then decide which option can be the best for the company while entering in Germany.
Generally, while penetrating into newer segments/regions, companies prefer going for strategic alliance or joint ventures as they are the best affordable and convenient options to consider and implement. Exporting products from home country is not the ideal thing to do at all as exporting is expensive, full of hurdles and there are a lot many legal barriers that are to be faced by the organization while exporting products from home country to the host country. Investing in the host country/foreign direct investment is another dangerous step to consider as it involves investing large sum of money without having clear assurity whether the company would be able to recover financially from the investments made into the host country. Therefore, consideration has to be placed to make sure which entry strategies are adopted so that the company doesn’t face any difficulty or problems in coming future.
For Cooper, the best strategy is to get into a joint venture with any brewery operating in Germany. In that way, Cooper would be able to use the brewery plant of the home producer operating in Germany but instead would be producing Beer of its own taste and ingredients. Instead of investing large sum of money by constructing a brewery plant in rural cities of Germany, Cooper can obtain the advantage of producing Beer on any other brewery by entering in to joint venture.
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