Understanding and critically Evaluating Entry Modes of Businesses in International Market

This model is mainly used in the manufacturing industry, and in 2008, a paper including an opposite argument that provides two environmental-related and service-specific variables that asks whether the Uppsala model can be used for services to enterprises It was announced. (Jorge Carneiro, da Rocha, and da Silva, 2008) Psychological distance and environmental uncertainty, quality requirements, direct contact with service providers, and capital strength are part of the arguments inconsistent with the Uppsala model is. According to the results of the survey, this service is mainly to select international models with high manageability such as license.

A model for entering the international market is a channel used by organizations trying to operate business in the international market to enter the new international market. Selection of a particular entry mode is an important determinant of successful external manipulation. Therefore, the decision to enter a foreign market has a big impact on the outcome. However, the use of certain strategies by international companies seems likely to bring higher growth and achievement than other companies. Manufacturing enterprises can choose from a variety of strategies, licensing and franchising, strategic alliances, and wholly owned overseas affiliates when entering a new international market (such as export). This research aims to investigate and point out the specific entry patterns and their values ​​used in Kenya manufacturing multinational companies.

Wind and Perlmutter (1977) argues that the choice of market access model has a major impact on international business and can be regarded as the most important strategic decision in international marketing. For most companies, the market entry model is an important first step. There are three main types of market entry patterns (Hollensen, 2007). However, the market entry mode is not considered an ideal entry mode. According to Petersen and Welch (2002), patterns are often combined to enter or evolve into specific foreign markets. Each market entry model is most suitable for the internationalization stage of a company. Most manufacturing companies have begun to internationalize through export models, and Natura is no exception. With the combination of export model and direct sales model, Natura was able to achieve international expansion in terms of flexibility, low risk, low cost, low management (Hollensen S., 2007).