1.0 Foreign Market Entry Strategies: Higgins Coatings 1.1 Entry mode Entry Mode is selling your product or service abroad, and the main ways to do this are: • Exporting • Franchising • Strategic Alliance • Joint Venture • Direct Investment • Licensing The entry modes all depend on how much risk your company is willing to take and how much control you are willing to give away. For the company i have chosen, “Higgins Coatings”, i recommend the entry mode of Strategic Alliance from Australia to Thailand. A Strategic Alliance is when two companies are working together but not investing any money into each other, just working. They do not buy out each other, they increase and better the success on both sides other parties. Having an strategic …show more content…
This is thanks to “The Thailand-Australia Free Trade Agreement” (TAFTA) which came into effect on 1 January 2005[1]. Through this, 94% of Thailand's tariffs on Australian goods and services have been eliminated. I have recommended a Strategic Alliance because with Thailand’s large investment into the growth of transportation, infrastructure and “Green Buildings” combined with TAFTA, this would ease Higgins Coatings to enter into Thailand and form a strategic alliance. Higgins Coatings has been established since 1949, and is Australia’s premier commercial painting contractor which many long term high profile clients, with successful projects such as the Rod Laver Arena and the Melbourne Cricket Ground. With great experience and success within the industry, Higgins could potentially form strategic alliances with “K-Tech Construction Public Co” and “Ltd.Syntec Construction Public Co”. Ltd which some of the largest construction firms in Thailand. Also alliancing with the upcoming Green Building companies that are currently being implemented. 1.2 Cultural and psychological factors affecting product