Modes of Entry to Foreign Markets


This case analysis is designed to encourage you to conduct an analysis of a market entry mode decision.

Case Assignment

Two of the most successful American companies, Apple and Google, attempted to expand their global reach by entering into the Chinese market. Each attained different level of success, for various reasons. You are tasked with advising the VP of Global Marketing of Apple Inc. on the question of what is the best way to enter the Chinese market with their iPhones and iPads. Which of the foreign market entry mode(s) would work best for Apple in China? What would you advise, and why? What lessons could Apple learn from Google’s experience in China? Please support your position with references to the reviewed literature provided in the Background information, as well as your own research.

Ensure that you repeat the assignment wording (shown in bold above), in full and verbatim on the title page of your paper.

Excluding your title and references pages, your paper should be no more than three pages long.


Use information from the background readings as well as any good quality sources you can find. Please cite all sources and provide a reference list at the end of the paper.

The following will be assessed in particular:

Your demonstrated understanding of the various forms of market entry mode and the issues associated with each.
Your ability to conduct an analysis on the basis of which you make a recommendation for a mode of market entry.
The criteria used for assessment will be those explained on the MOD01 Home page, namely:

Critical thinking
Effective communication skills
Proper use of Citations and References
Sources relevant to the case:

Foreign market entry is an important strategy for multinational enterprises (MNE) to expand their global reach and establish an international network of interdependent business units.

Meyer, K. (2009). Foreign market entry. Princeton University Press

Che, J., & Facchini, G.. (2009). Cultural differences, insecure property rights and the mode of entry decision. Economic Theory, 38(3), 465-484.

Apple is making huge inroads into China’s tech markets, but critics say the company is making unpleasant compromises along the way. The company’s Chinese suppliers are accused of disregarding workers’ health and safety, and playing fast and loose with labor rules. Local activists say Apple has been sluggish in addressing their concerns.

Larson, C. (2011). Red, delicious, and Rotten: How Apple conquered China and learned to think like the Communist Party. The Foreign Policy [Electronic version].
Available on August 28 at

In a dramatic statement posted on the company’s official blog, Google sparked a confrontation with the Chinese government that will likely end with the company exiting the Chinese market. Google’s statement all but accuses the Chinese government of “a highly sophisticated and targeted attack on our corporate infrastructure.”…

Haddick, R. (2010, January 15). This Week at War: Google has more guts than the U.S. Government. Foreign Policy [Electronic version]. (August 1, 2011).
Available on 2011 August 28 at

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