Analyze the following situations and suggest which market entry strategy is most
likely to be successful. Please, justify your decision in no more than one page for
each case. Analyze the type of strategy (trading or investing), and then identify
the specific market entry strategy. While it is understood that many organizations
will use several market entry strategies, for the purposes of this exercise, choose
only one.
Case 1
A mid-sized Italian cosmetics organization wants to expand its market share, maximize profits,
reduce costs and possibly acquire new technology. It has identified Asia as an area of growth
for its products, with Korea as a base, and has noted that manufacturing costs are low in that
country. It wants total control over activities and is looking for a long-term investment. It is
comfortable with a high amount of risk and a large investment of capital and is committed to
staying in the new target market.
