One of the most common entry strategies for MNCs is the joint venture. Why are so many companies opting for this strategy as they attempt to expand into overseas markets (E.g. US based Wal-Mart, the world's largest retailer, entered Brazil in 1995 by forming a 60:40 joint venture with one of the country's leading business conglomerates, Grupo Garantia)? Please provide specific examples and a rationale for your response. It is extremely common for MNC’s to use joint venture to build local alliances when entering into business in a new country or market. Joint ventures allow the international ...
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Introduction
Nike Incorporation was formed in 1968 in Oregon. The company is a well known global brand producing footwear products which are designed to satisfy specific athletic uses as well as certain products which can be worn for leisure and casual purposes. The corporation has operations in more than 51 countries and has over 20,000 retail accounts internationally (Nike, 2012). Nike has 16 distribution centers outside United States and in 2011, 57 percent of its total revenue came from its international operations (Annual Report, 2011). Since Nike is a global firm, it has to face a number of challenges which include making ...
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