publication . Preprint . 2013

Fight or buy? A comparison of internationalization strategies.

Roland Kirstein;
Open Access
  • Published: 01 Feb 2013
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...

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