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Working in the local ent of a deeper relationship with the local partner possible

Sonntag, 14. April 2024 22:36

Working in the local ent of a deeper relationship with the local partner possible

However, an increased interest in this emerging market has required another type of investment in a sales subsidiary and a centre for packaging design to meet new packaging demands. Such investment involves other kinds of risks in relation to an emerging e time new relationships need also to be developed with local actors, especially in a high-context culture like China. A new business context and hidden obstacles also contribute to a certain market uncertainty in case B. The firm-specific advantages refer mainly to the inherent technological know-how and international market experience about the supply chain, whereas the main market-specific advantage is a growing market for packaging materials in relation to other market regions in the world. This study highlights the importance of market screening and selection procedures.

ent decisions

In case A, the firm has chosen to make the entry into an emerging market area by investing in a JV for the local production of packaging materials for the food industry. This solution gave management local production facilities and converting capacity to develop greater flexibility in meeting customer demand. Local stock facilities and improvement in the distribution system also contribute to a higher service level to customers. Even if the firm previously had some experience with the partner, a closer relationship required management to overcome different cultural factors from a national to an individual level (within a high-context/collectivistic culture).

In case B, management has chosen to export products and build relationships with different actors in its supply chain. […]

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