Shiffon Electric Group wants to enter the European market via a wholly owned subsidiary where there are already well-established incumbent enterprises, and where global competitors are also interested in establishing a presence. What would be a suitable mode of entry for Shiffon Electric?

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20-04-2022
Business

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Shiffon Electric Group wants to enter the European market via a wholly owned subsidiary where there are already well-established incumbent enterprises, and where global competitors are also interested in establishing a presence. What would be a suitable mode of entry for Shiffon Electric?

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Tundexi Tundexi · Answer 1 · 2022-04-26T12:46:25+02:00

The most suitable mode of entry for Shiffon Electric into the European market will be through acquisition.

What is an acquisition?

This is a business arrangement whereby a company purchases most or all of another company's shares to gain control of that company.

Thus, this business arrangement will allow Shiffon Electric Group to enter into the market effectively and have market share despite number of well-established incumbent enterprises.