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Market Selection and Foreign Entry Mode Research (Essay Sample)


For your final SLP, pretend that an American corporation hired you to write a report on whether or not they should enter the country that you have been researching for your Modules 1-3 SLP assignments. You have already done a lot of research on many of the cultural, financial, legal, and political aspects of doing business in your country, which you can use as part of your overall recommendation. However, you also need to consider other factors, such as the potential size of the market that your country has to offer. If your country has very few consumers, then it will not be a wise decision to enter the country no matter how strong the legal or political system


Market Selection and Foreign Entry Mode
Student’s Name
Market Selection and Foreign Entry Mode
Positive Aspects about Switzerland
A U.S. based corporation is bound to experience some positive aspects if it selects Switzerland as its destination market. As shown in the market potential index (MPI) by Global Edge (2015), Switzerland is among the top 10 countries in the world in regards to market potential. This means that the country offers numerous locational advantages that businesses entering the country can benefit from. As noted in the index, Switzerland ranks highly in commercial infrastructure, economic freedom, and country risk.
The commercial infrastructure in the country is attractive to businesses wishing to enter the market. As noted by Bürgi Nägeli (2010), Switzerland offers exquisite infrastructure that supports business activities. Specifically, the country has well integrated and extensive road, air, and rail network. Communication services, energy, and water supply in the country are first-class as well (Bürgi Nägeli, 2010). The presence of this infrastructure means convenience, security, and mobility is guaranteed for businesses entering the country. There is a reliable connection of the country’s infrastructure to other countries in Europe. The international airports in Basel, Geneva, and Zurich aslo offer easy access to destinations in Europe and other places around the world. Therefore, an American firm entering the country is set to benefit from the first-class infrastructure.
Economic freedom is another aspect that makes the country attractive to corporations based in the U.S. It is the most economically free country in the region, and this means that it is characterized by regulatory efficiency, the rule of law, and open markets (Heritage Foundation, n.d). With the country having minimal barriers for the growth of entrepreneurial businesses, Switzerland’s economy is innovative and competitive. As such, it is easy for a...
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