Greenfield projects and investments and mergers and acquisitions are considerably different in terms of their requirements and performance over the period of time. On a general note the acquisitions are much easier to undertake and provide instant gratification in terms of return on investment.
The Greenfield projects however have a much lower initial rate of return, but in the long run the Greenfield projects are much more sustainable and profitable for parent companies. However Greenfield investments and acquisitions are both a diversified form of market entry mode. This category is much preferred by business for entering foreign markets as they require considerably less capital investment and issues of partnership are often avoided.
This is usually an evolutionary process however companies now are skipping these steps and are opting for specific entry mode strategies. The most popular strategies which have been observed pertain to the strategy of investing in Greenfield projects and seeking out acquisitions to enter the new market.
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.