International Business Strategy and Market Entry Analysis

Posted on Jun 12, 2026 in Business Administration and Management (BAM)

Case Studies in International Expansion

Case C: Sportswear in Brazil (Exporting vs. JV)

  • Strategic Differences: Exporting involves low investment and low control but suffers from MERCOSUR tariffs. A Joint Venture (JV) involves higher investment and shared control, bypassing tariffs through local production, but increases dissemination risk.
  • Recommendation: A JV is the best option for market adaptation and tariff avoidance. Protect intellectual property via patents and NDAs.
  • Market Specifics: Brazil offers 200 million consumers but carries risks like political instability and exchange rate volatility.

Part 2: Market Share vs. Profit (EuroMove)

Strategic Conclusion: Strategy A at €18 creates losses. Adjusting the price to €18.89 covers costs while maintaining a competitive market-share strategy. This remains far below Strategy B’s €28.

Part 1: Transnationality Index (TNI)

  • Case 1: TechGlobal: Highly internationalized MNE (TNI > 66%). High dependence on foreign markets and diversification, but increased exposure to political and exchange rate risks.
  • Case 2: IberGlobal (MERCOSUR): Post-acquisition TNI rose to 62.05% (+7.05 points). While internationalization increased, the firm must evaluate integration costs and political risks beyond just the TNI metric.

Case B: Apple (GVC & Smile Curve)

  • GVC & Slicing: Apple fragments production globally. R&D remains in-house (US), while assembly is offshored to India and Vietnam.
  • Smile Curve: High value-added activities (R&D, branding) are kept in-house, while low value-added assembly is outsourced to firms like Foxconn.

Case A: Cosmetics Spain

Recommendation: Sequential internationalization. Export first to test demand, then establish local subsidiaries (FDI) once volume justifies the investment.

Section 3: Entry Modes, GVC & Smile Curve

Foreign Market Entry Modes

  • Indirect/Direct Exporting: Low investment, low control.
  • Licensing/Franchising: Low investment, high dissemination risk.
  • Outsourcing: Hiring external firms for specific tasks.
  • Joint Venture (JV): Shared ownership and risk.
  • M&A: High investment, high control.
  • Greenfield Investment: Building from scratch; total control.

Operational Frameworks

  • Offshoring: Relocating activities to another country.
  • TLM Framework: Strategic decisions based on Task, Location, and Mode.
  • Smile Curve: High value-added at the start (R&D) and end (branding) of the chain; low value-added in manufacturing.

Section 2: Market Share vs. Profit

  • Strategies: Market share (low price) vs. Profit (high price).
  • Metrics: Unit margin, operating profit, and break-even price.

Section 1: TNI & Multinational Enterprises

  • MNE Definition: A company controlling productive assets in multiple countries.
  • TNI Classes: Low (<30%), Medium (30-60%), and High (>60%).
  • Motivations: Resource-seeking, market-seeking, efficiency-seeking, and strategic asset-seeking.