FDI, Setting Up a Business in a Foreign Country Term Paper

FDI, Setting Up a Business in a alien Country - Term Paper ExampleIn this regard, South Korea is considered a favorable destination for impertinent direct investment.For effective entry into the South Korea melodic line, snap fastener Fitness requires a strategy for entry into the plains market. There have been previous reports of companies that failed in such attempts but Snap fitness impart not. The strategy for entry give involve all stakeholders in the Snap fitness business. The entry into the business will have to involve the locals. It is only when the locals are involved that they will feel free to carry technology that Snap Fitness is introducing. The method that the company is going to use is that of partnership. For the company to secure a place in the Korean market, it will be appropriate that Snap Fitness seeks partnership with other fitness companies in the country. Therefore, Snap Fitness will identify the company to partner with before the entry. main course i nto a new market is always coupled with challenges and risks. Snap Fitness entry into South Korea is no different. The company expects to find already established market for many of its competitors and an uncertain population. There are overly risks of partnering with a non-performing company that can ruin the whole plan or make it significantly expensive. However, this stiff the most appropriate mode of entry given that the country is a multicultural state and for Snap Fitness to gain a competition base with rival brands. The other benefits of partnership are that we will be able to connect easily with the local consumers who are the target segment through development of the market language.The above method has been documented to have worked with other brands such as MacDonalds, which established itself into the Korean market by using culture as an asset and not a risk (Lim, 2004). They firstborn used educated locals to learn the cultural requirements of Koreans, and then estab lished products that are culturally acceptable. They sold Korean delicacies to the locals and within