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Surname 1 Name: Zhirui Jin Tutor: Dr. Charles Chekwa Course: MGT 4478 Date: 01/21/2018 Recommendation Report on Best Buy entrance to China’s Market Introduction The decision to enter into China Market by BestBuy Company is a remarkable step that signals a brighter future for the company. This report outlines some recommendations concerning the mode of entry into the market; the human resource needs to effect expansion, marketing and distribution strategies that are likely to be effective in making the entrance. Mode of Entry The best way BestBuy Company can enter the Chinese market is to contract the services of Agents. This is the best mode of the entrance because other competitors belonging to China are already established in the country thus using agents and distributors will ease the penetration process in the presence of competing brands. Agents do not take ownership of the products being sold and always operate on commissions thus using agents to facilitate penetration will minimize the cost of expansion (Ang et al. 80). Other benefits of using an agent include avoiding recruitment and payroll costs that come with using BestBuy employees to enter the new market; an agent is conversant with the country's culture and values as well as opportunities available in the new country. Likewise using agents will make BestBuy be in a better position of controlling the brand image and the prices of its products. Though using agency is the best option for the company there are som ...
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