Modes Of Entry Into An International Market Are The Channels ✓ Solved

Modes of entry into an international market are the channels which organizations employ to gain entry to a new international market

Read Chapter 7 Assurance of Learning Exercise #2 (attached) related to Walgreens’ mode(s) of international market entry and respond to the following questions: -- 500 Words What was Walgreens’ entry strategy designed to achieve? Why would this make sense for a company like Walgreens? Provide two recommendations on what Walgreens might do differently going forward with their entry strategy? Make sure you support your recommendations. Incorporate our coursework from this week into your response.

Sample Paper For Above instruction

Walgreens’ international market entry strategy has been primarily characterized by acquisitions and partnerships, aimed at rapidly establishing a presence in foreign markets. Specifically, Walgreens entered overseas markets such as the United Kingdom and China through strategic acquisitions of local pharmacy chains and partnerships with established local firms. The core objective of this approach was to leverage existing infrastructure, local expertise, and existing customer bases, which accelerated market penetration and minimized risks associated with starting operations from scratch.

By adopting an acquisition-driven entry strategy, Walgreens intended to achieve several objectives. Firstly, it aimed to attain immediate market access with a ready-made customer base, reducing time-to-market and operational risks. Secondly, this approach facilitated knowledge transfer about local consumer preferences, regulatory environments, and competitive dynamics, which are crucial for adapting pharmacy services and product offerings. Thirdly, acquisitions enabled Walgreens to establish a competitive foothold quickly in foreign markets, especially in highly saturated or complex regulatory environments, where organic growth might be slow or challenging.

This strategy makes sense for a company like Walgreens because it minimizes exposure to unfamiliar markets' uncertainty. Walgreens, as a large pharmacy chain primarily focused on retail health services, benefits from the immediate credibility and infrastructure of acquired companies. Moreover, leveraging existing relationships and supply chains accelerates growth and reduces the costs and risks associated with expansion. Since Walgreens’ core competence lies in pharmacy operations, acquiring local firms with expertise in distribution and customer engagement allows the company to adapt its core strengths to new markets efficiently.

However, going forward, Walgreens could consider modifying its international entry strategy to enhance its global footprint. Firstly, instead of primarily focusing on acquisitions, Walgreens might adopt a mixed entry approach that combines acquisitions with organic growth initiatives, such as opening greenfield stores or joint ventures. This diversification could allow Walgreens to tailor its offerings more precisely to local consumer needs and build a stronger brand presence over time rather than relying heavily on acquired brands that may not fully align with Walgreens’ corporate culture or customer expectations.

Secondly, Walgreens could place greater emphasis on digital health solutions and e-commerce platforms tailored for international markets. With the rise of telepharmacy and digital health records, the company could leverage technology to reach remote populations or underserved areas more efficiently. Integrating digital strategies into their market entry plans would align with trends in global healthcare delivery and foster long-term loyalty among consumers. These recommendations are supported by coursework from this week, emphasizing the importance of adaptable entry strategies and technological integration in international expansion (Hollensen, 2020; Cavusgil et al., 2014).

Ultimately, while Walgreens’ current approach has enabled rapid market access, adopting a more diversified and technologically integrated strategy could enhance sustainable growth and competitive advantage in the global pharmacy industry.

References

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