The strategy rule is recommended here. Not only does it make the most sense, but it can be implemented in a short time with little cost.
Applying the strategy rule to choosing a foreign market entry mode is a three-step process:
Step A: Find the feasible modes out of all possible modes
Step B: Perform a comparative analysis of all feasible modes
Step C: Rank and choose the appropriate mode and implement it
This approach conforms with the XYZ framework shown in Figure 2.5, which requires that managers choose a foreign market entry strategy by matching up the company's goals (Z), the company's internal strengths and weaknesses (X), and the constraints of the external environment (Y). It also satisfies the requirements of the systems approach, which calls for managers to go through the following three steps: Conceptualizing the entire process, Measuring/ quantifying the concepts and their relationships, and Computerizing the conceptual model developed in the first step and quantified in the second.
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