Research proposal 2 Essay Example | Topics and Well Written Essays - 750 words

Research proposal 2 - Essay Example ch are more integrated to the local markets and carry the full responsibility for all marketing and research activities (Birnick and Cormack, 2010; Brandmeier, Hain, and Rupp, 2011; Al-Khazali, Darrat and Saad, 2006:1265). This paper develops a proposal for investigating of the main reasons for this shift in market entry strategies and what multinational companies expect from such shifts, as well as possible future shifts in market entry strategies. This will be done with a core focus on multinational pharmaceutical companies in the Gulf countries. The market entry modes of a firm in a foreign market have a significant role in determining whether such a company would be successful or not in such markets. Meyer, Estrin, Bhaumik and Peng (2009:62) classify the entry modes into three classes: acquisition, Greenfield and joint ventures. While joint venture enables integration of selected local resources hence facilitating a host partner business model, Greenfield projects and acquisitions often facilitate full ownership of the business (pp. 63). The key basis on what entry mode to be chosen is often based on the trade-off between control and risk. While on one hand, using a host partner minimizes risks of doing business due the lower cost of doing business and utilization of already existing local resources, such method also minimizes control lowering the ability of a multinational firm to make effective decisions or have access to important information (Arnold, 2003). There have been a number of studies which have evaluated the market entry modes in various emerging countries, with most focusing on Asian markets such as China and India (Johnson and Tellis, 2008; Mitra & Golder, 2002). Few have focused on market entry modes into the Gulf Countries (Birnick and Cormack, 2010; Brandmeier, Hain, and Rupp, 2011). The core challenges that have to be faced in setting shop within the Gulf countries has mainly been the regulation where foreign equity participation is