publication . Preprint . 2013

Fight or buy? A comparison of internationalization strategies.

Roland Kirstein;
Open Access
  • Published: 01 Feb 2013
Abstract
The paper evaluates three internationalization strategies of a company that considers invading a foreign market: • It can buy a firm that resides in the target market (acquisition strategy), • it can produce at home and export into the target market (export strategy), • or the two firms can agree upon produce in the invader's home country and sell the products in the target market (OEM strategy). For simplicity, we assume that the incumbent firm in the target country has a monopoly position. Under these circumstances, following the acquisition strategy would allow the newcomer to obtain this monopoly position, whereas the export strategy might result in a duopol...

Horn, H., and L. Persson (2001) The Equilibrium Ownership of an International Oligopoly. Journal of International Economics 53, 307-333.

Inderst, R. and C. Wey (2002) The Incentives for Takeover in Oligopoly. International Journal of Industrial Organization 22, 1067-1089. [OpenAIRE]

Kamien, M. and I. Zang (1990) The Limits of Monopolization through Acquisition. Quarterly Journal of Economics 105, 465-499.

Perry, M. and R. Porter (1985) Oligopoly and the Incentives for Horizontal Merger. American Economic Review 75, 219-227.

Salant, S.W., Switzer, S., and R.J. Reynolds (1983) Losses from Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium. In: Quarterly Journal of Economics 98, 185-199.

Stigler, G. (1950) Monopoly and Oligopoly by Merger. American Economic Review, Papers and Proceedings 40, 23-34.

Tombak, Mikhel M. (2002) Mergers to Monopoly. Journal of Economics and Management Strategy 11(3), 513-546. [OpenAIRE]

Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue