International Management Essay Example | Topics and Well Written Essays - 1750 words - 3

International Management - Essay Example The brand was launched by the company Jahwa in the year 1998 and since then Herborist has experienced significant growth. Herborist has achieved $ 8.2 million of revenues in the year 2004 which led to a huge amount of profitability for the brand. The brand already has its existence in numerous European countries including Poland, Spain, and Italy with 80% growth in sales annually. The entry modes for organizations into foreign markets are considered to be of two types such as non equity and equity modes. Non equity modes of entry comprise contractual agreements and export. The equity modes of entry are considered to include wholly owned subsidiaries and joint venture. The best way for the brand Herborist to get access to foreign markets such as Thailand is to enter into joint ventures with other reputed organizations that focus on personal care products in the market of Thailand. This will provide the brand Herborist with immediate access to the market of Thailand. Since the brand is already recognized on a global platform to provide quality personal care products, it will be easy for the brand Herborist to form a joint venture with another reputed personal care company operating in the country of Thailand. It could consider forming a joint venture with Sephora group in this regard. The brand will enjoy numerous benefits by entering into a joint venture with the Sephora group such as gaining access directly to local markets, reduction of political and marketing risk, overcoming the restrictions of host government in an efficient manner, and sharing the risk of failure. As the brand has already established a partnership with Sephora group in France, it will play an important role in their working efficiently in a combined manner in Thailand. There are also certain disadvantages in this regard such as problem of transfer pricing, problem of adjusting to different cultures may lead to different