Consequently, Toyota started enters foreign markets with exporting which is the fastest and lower risk mode, in order to launch their products into broad markets and establish their brand recognition. Moreover, with the constraints such as high transaction costs, import restriction policies, and exchange rate volatility. Toyota regulated their entry strategies with FDI, joint venture and wholly-owned subsidiaries. With the different modes of entry in each country, Toyota is still facing limitations such as cultural differences and political risks.
Toyota has acquired economy of scale and labor cost advantage from their expansion. Toyota had expands their sales network worldwide in their production and increased their production capacities in their production centre in many countries. Since there is no best entry mode for Toyota, therefore it is a challenge for Toyota to choose a suitable mode of entry in their industry and be the leader in automobile industry.
Consequently, Toyota started enters foreign markets with exporting which is the fastest and lower risk mode, in order to launch their products into broad markets and establish their brand recognition. Moreover, with the constraints such as high transaction costs, import restriction policies, and exchange rate volatility. Toyota regulated their entry strategies with FDI, joint venture and wholly-owned subsidiaries. With the different modes of entry in each country, Toyota is still facing limitations such as cultural differences and political risks.
Toyota has acquired economy of scale and labor cost advantage from their expansion. Toyota had expands their sales network worldwide in their production and increased their production capacities in their production centre in many countries. Since there is no best entry mode for Toyota, therefore it is a challenge for Toyota to choose a suitable mode of entry in their industry and be the leader in automobile industry.
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