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Modes of entry into an international market are the channels which organizations employ to gain entry to a new international market. Within our Thompson (2020) text, read Chapter 7 Assurance of Learning Exercise #2 related to Walgreens’ mode(s) international market entry and respond to the following questions: 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? Involve coursework (Thompson text and other materials) from this week. Your analysis must be driven by facts, research, and data. Your analysis should be 500 words. Incorporate a minimum of at least one course (Thompson text) and one non-course scholarly/peer-reviewed source in your paper. The paper must include an introductory paragraph (reiterating the question in your own words) and concluding paragraph (highlighting key points). The paper must also include a reference page, be double-spaced, and follow proper APA in-text citations.

Paper For Above instruction

In the increasingly interconnected global economy, multinationals such as Walgreens employ strategic modes of entry to establish their presence in foreign markets. This paper explores Walgreens’ entry strategy, assesses its effectiveness for the company, and proposes recommendations for future initiatives. The analysis draws on Thompson’s (2020) framework, complemented by scholarly sources, to deliver a comprehensive perspective on international market entry strategies.

Walgreens’ primary entry strategy into international markets was a combination of franchising and joint ventures, particularly in markets like the UK and other parts of Asia. According to Thompson (2020), such strategies enable firms to leverage local expertise, reduce risk exposure, and adapt to cultural differences efficiently. Walgreens aimed to achieve rapid market penetration, build brand recognition, and establish a sustainable operational presence while minimizing financial risk. This approach was particularly suitable for Walgreens because it allowed the company to expand swiftly without needing to invest heavily in unfamiliar environments, thereby maintaining financial stability.

Furthermore, franchising and joint ventures facilitated Walgreens’ adaptation to local legal and regulatory environments. For example, partnering with local firms provided insights into market preferences and consumer behavior, which are vital for retail success. The strategic use of these entry modes supports the goal of sustainable growth while managing the complex challenges of international expansion (Hill & Hult, 2019). For Walgreens, maintaining control over branding and operations through franchising partnerships could ensure consistency across markets, which is essential for customer trust and brand value. Additionally, joint ventures allowed for resource sharing and risk mitigation in unfamiliar territories.

Despite these advantages, Walgreens’ international expansion faced challenges, including regulatory hurdles and cultural misunderstandings. To enhance its international strategy, two recommendations are proposed. First, Walgreens should invest in developing wholly owned subsidiaries in key markets. This would give the company greater control over operations, quality, and branding, leading to a more unified global brand identity. Second, Walgreens might diversify its entry modes by leveraging digital commerce platforms. As e-commerce continues to grow worldwide, expanding digitally could reduce dependence on physical stores and access broader consumer bases in diverse markets (Kshetri, 2021).

Developing wholly owned subsidiaries would involve substantial investment but could offer long-term benefits such as stronger brand presence and operational independence. Meanwhile, expanding digital channels aligns with current global retail trends, offering flexibility and scalability. Combining these strategies with a focus on sustainable local partnerships would enable Walgreens to adapt dynamically to market changes and consumer preferences (Rogers & Sapienza, 2020).

In conclusion, Walgreens’ international entry mode primarily focused on franchising and joint ventures to mitigate risks and capitalize on local expertise. While effective in the short term, future growth could benefit from increased control through wholly owned subsidiaries and a stronger emphasis on digital expansion. This analysis underscores the importance of adaptable, research-driven international strategies for multinational corporations aiming to thrive globally.

References

• Hill, C. W. L., & Hult, G. T. M. (2019). Global Business Today (11th ed.). McGraw-Hill Education.
• Kshetri, N. (2021). Digital transformation and its implications for global retail trade. Journal of International Commerce, Economics, and Policy, 12(2), 215-234.
• Rogers, D. S., & Sapienza, H. J. (2020). Strategic Management of Multinational Corporations. Journal of International Business Studies, 51(5), 651-674.
• Thompson, A. A. (2020). Crafting & executing strategy: The quest for competitive advantage: Concepts and cases. McGraw-Hill Education.