From CEO experiences pertaining to market entry strategies like acquisition, joint ventures and Greenfield investments it was also determined that acquisitions and Greenfield investments are preferred to joint ventures as they profile high level of control. Moreover the risk is buffered by partners in joint ventures, while in acquisition the risk is somewhat minimized. In the Greenfield investments however the complete risk is borne by the investing company resulting in greater exposure to the risk.
The resource requirements in joint ventures are shared by partners while in Greenfield investments and acquisition the companies need to invest in all resources. The information required however is available to the acquisitions for the local domestic market while for the Greenfield investment, extensive industry and market research need to be conducted in order to obtain such information. Pertaining to mergers and acquisitions and Greenfield investments for market entry Muller states “we find that the optimal entry mode decision is affected by the competition intensity in the market in a non-monotonic way. When markets are very much or very little competitive, Greenfield investment is the optimal entry mode, while for intermediate values it is acquisition.”(Muller, 2007)
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