WARNER BROTHER MARKETABILITY

You are assigned a company and a host country of interest. You must now engage in new product development and/or new marketdevelopment in your given host country.

The project is time warner in Argentina.

I want you to write about Mode of Entry. Explain and support your rationale.

here is the analysis of the project :

SWOT Analysis

• Strengths
  • Warner Brothers was the #2 film studio in the global box office receipts in 2016
  • #1 or #2 film studio in domestic box office receipts for eight of the past 10 years
  • #1 or #2 film studio in global box office receipts for nine of the past 10 years.
  • HBO provides local language original programming and U.S. television programming by other production studios
  • Developing programming specifically tailored for local audiences through its global network of production companies
  • Focuses on building global franchises based on existing intellectual property that it can monetize across its businesses and distribution channels
• Weaknesses
  • Time Warner recently expanded HBO in Argentina in December 2016; making it a fairly new market entry
• Opportunities
  • Argentines have the highest rates of movie viewing in the world
  • Have high-level proposals that are intended to promote access to online services and entertainment content across national borders
  • Expansion of their services and digital content into more countries
• Threats
  • There are already superhero movies in the world
  • Other U.S. movies in circulation
  • Competition from other TV networks, premium pay television services, local television stations
  • Competition from studios and television production groups and independent producers
  • Piracy of their digital content
  • Other countries limiting the ability to exploit and enforce their exclusive right of intellectual property outside the U.S
  • These are six different ways to enter a foreign market
    1.Exporting – most common first step for many manufacturing firms
    vlater, firms may switch to another mode
    2.Turnkey projects – the contractor handles every detail of the project for a foreign client, including the training of operating personnel
    vat completion of the contract, the foreign client is handed the “key” to a plant that is ready for full operation
    3.Licensing – a licensor grants the rights to intangible property to the licensee for a specified time period, and in return, receives a royalty fee from the licensee
    vpatents, inventions, formulas, processes, designs, copyrights, trademarks
  • 4.Franchising – a specialized form of licensing in which the franchisor not only sells intangible property to the franchisee, but also insists that the franchisee agree to abide by strict rules as to how it does business
    vused primarily by service firms
    5.Strategic Alliance or Joint Ventures with a host country firm – a firm that is jointly owned by two or more otherwise independent firms
    vmost joint ventures are 50:50 partnerships
    6.FDI (including wholly owned subsidiary – the firm owns 100 percent of the stock)
    vset up a new operation (Greenfield)

    acquire an established firm (M&A)

Answer preview

According to Dikova and Van Witteloostuijn (2007), mode of entry are the channels which the business enterprise employs to enter a new market. Warner brothers have different channels that can follow to enter the Argentinean market. Basing on its own SWOT Analysis it has super abilities to be a competitive firm in the foreign market…

(680 words)