The selection of entry modes when penetrating a foreign market : A research study on the education institutes choice of entry mode

Abstract:

Abstract

Thesis title: The selection of entry mode when penetrating a foreign market

Author: Annica Gunnarsson 

Tutor: Åsa Devine

Course: Marketing, advanced level, spring term 2011, Linnaeus University

Entering a new market is always a risky business, with a big potential of failure. To research the options of entry strategy can help in determine which strategy to use. The international market of education has changed during the last years, and in Sweden we just had one big change when the introduction of tutoring fees was determined. This has forced the universities out on unfamiliar territory.  This new territory consists of competing on a much bigger market than before and the need to develop a new international marketing strategy has occurred. The research on entry modes from a manufacturing perspective is extensive and therefore this research deals with the entry modes from a service perspective. The aim of this study is to gain better understanding of the selection of entry modes from a service institutes perspective. Furthermore the research is limited to investigating the education sector and how they use entry mode when wanting to establish them on a new market.

The research is done through seven different interviews. The universities are located both in Sweden and abroad. This method where chosen because the goal is to find out how the universities is enter new markets.   

The findings are based on the factors that determined international marketing strategy and how the respondents have answered the questions. How the universities work with the changes they experience is also a factor in the decision making process on which international strategy to use. The main findings of the study are that the entry mode education institutes most often use is some sort of international joint venture.