Module 4 – Case
MARKET SELECTION AND FOREIGN ENTRY-MODE
Assignment Instructions
Zipcar is a highly successful new company specializing in a
brand new model for automobile rental services, which allows their customers
long-term and flexible access to shared vehicles on a daily or hourly basis.
Zipcar’s innovative model allows those who sign up for their membership
services to share cars with other members on a flexible basis, creating a cost
effective alternative to car ownership. Since its founding in 2000, it has
grown to become a major player in the U.S. automobile rental market and has
expanded internationally to Canada, the U.K., Spain, and Austria and offers
rental services to almost one million customers.
Before writing your paper, make sure to carefully review the
concepts of country selection and evaluation in Venkateswaran (2012) as well as
the discussion of advantages and disadvantages of different foreign entry mode
decisions in Jeyarathmm (2008) and Rajagopal (2009). Once you have finished
reviewing the basic concepts of this module, read the following two articles
and do some of your own additional research on Zipcar:
Zipcar expands in Sacramento becoming 26th major metro
market: Based on strong demand, Zipcar increases number of vehicles, will open
office (Nov. 6, 2013) PR Newswire [Proquest]
Esswein, P. M. (July, 2011). Zipcar: Robin Chase.
Kiplinger’s Personal Finance, 65, 1 [Proquest]
Zipcar, Inc.; Zipcar acquires leading car sharing service in
Austria. CarSharing.at. (July 25, 2012). Mergers & Acquisitions Week, 196.
[Proquest]
Now suppose you have been hired by Zipcar to come up with an
international strategic plan. Write a 4- to 5-page strategic plan for Zipcar
that addresses the following issues:
What country or countries should Zipcar enter next beyond
the five countries they already operate in? Explain your reasoning for this
selection based on criteria from the background materials including
Venkateswaran (2012).
What mode of entry should Zipcar use to enter this country
or countries that you chose? For example, should they use a joint venture,
franchising, a greenfield strategy, etc.? Refer to the concepts from Jeyarathmm
(2008) and Rajagopal (2009) in your answer.
Assignment Expectations
Answer the assignment questions directly.
Stay focused on the precise assignment questions; don’t go
off on tangents or devote a lot of space to summarizing background materials.
Make sure to use reliable and credible sources as your
references. Articles published in established newspapers or business
journals/magazines are preferred. If you find articles on the Internet, make
sure they are from a credible source.
Reference your sources of information with both a
bibliography and in-text citations. See the Student Guide to Writing a
High-Quality Academic Paper, including pages 13 and 14 on in-text citations.
Another resource is the “Writing Style Guide,” which is found under “My
Resources” in the TLC Portal.
Module 4 – SLP
MARKET SELECTION AND FOREIGN ENTRY-MODE
Assignment Instructions
For your final SLP, pretend that an American corporation
hired you to write a report giving a recommendation on whether or not they should
enter the country that you have been researching for your Modules 1-3 SLPs. You
have already done a lot of research on many of the cultural, financial, legal,
and political aspects of doing business in your country which you can use as
part of your overall recommendation. However, you also need to consider other
factors such as the potential size of the market that your country has to
offer. No matter how strong a country’s legal or political system, if your
country has very few consumers that it will not be a wise decision to enter
your country.
One resource to use for your report is Michigan State
University’s Market Potential Index (http://globaledge.msu.edu/mpi/2014). This
index focuses mostly on various aspects of the size or growth of the consumer
market in each country which should provide some valuable information to use in
making your recommendation. But don’t rely just on this index. Do some
additional research on factors that you think make your country an attractive
or unattractive market for an American company and use some of Venkateswaran’s
(2012) guidelines on country evaluation as part of your paper.
When you have finished your research, write a two to three
page paper with the following information:
What are the positive aspects of your country that would
make it an attractive market for an American corporation? Consider all of the
main factors that you researched regarding your country for Modules 1-3 plus
additional research for Module 4 on market potential.
What are the negative aspects of your country that would
make it an attractive market for an American corporation? Consider all of the
main factors that you researched regarding your country for Modules 1-3 plus
additional research for Module 4 on market potential.
Overall what is your recommendation for the American company
that hired you to write this report? Do the positives outweigh the negatives?
Or vice versa? Explain your reasoning.
SLP Assignment Expectations
Answer the assignment questions directly.
Stay focused on the precise assignment questions; don’t go
off on tangents or devote a lot of space to summarizing background materials.
Make sure to use reliable and credible sources as your
references. Articles published in established newspapers or business
journals/magazines are preferred. If you find articles on the Internet, make
sure they are from a credible source.
Reference your sources of information with both a
bibliography and in-text citations. See the Student Guide to Writing a
High-Quality Academic Paper, including pages 13 and 14 on in-text citations.
Another resource is the “Writing Style Guide,” which is found under “My
Resources” in the TLC Portal.
