Figure 218 Oct 2026From “What is a market entry strategy?”

The entry mode decision

The first choice is whether to contract with others or extend the firm abroad. If the firm extends itself, the second is whether to share ownership.

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Figure 2The entry mode decision

Choice	What the firm does	Partners named in the review
Contract	Enters through contracts with firms abroad	Distributors, resource suppliers, licensees, franchisees
Equity joint venture	Sets up a sales or manufacturing affiliate and shares its ownership with other firms	Co-owners of the affiliate
Wholly owned subsidiary	Sets up a sales or manufacturing affiliate and keeps full ownership	None in ownership

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Source: Brouthers and Hennart (2007), pp. 395-396, describing the form of operation firms use to enter foreign markets. The authors note no consensus that these modes sit on one dimension of control, commitment and risk (p. 419), and count 16 mode types in earlier studies (p. 397).

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From the essay

Go-to-market strategy

What is a market entry strategy?

A market entry strategy decides where, how and when a firm enters. In 2001, most of the largest firms sold mainly in their home region.

18 Oct 2026

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Isoglu, S. (2026). The entry mode decision [Figure]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-market-entry-strategy-fig02/

BibTeX

@misc{isoglu-2026-what-is-a-market-entry-strategy-fig02,
  author = {Isoglu, Sinan},
  title = {{The entry mode decision}},
  year = {2026},
  howpublished = {Figure 2, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-market-entry-strategy-fig02/},
  note = {From the essay {What is a market entry strategy?}}
}

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<figure>
  <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-market-entry-strategy-fig02/">
    <img src="https://isoglu.com/social/isoglu-2026-what-is-a-market-entry-strategy-fig02.png" alt="Figure 2: The entry mode decision" width="3200" height="2400">
  </a>
  <figcaption>Figure 2: The entry mode decision. Source: Brouthers and Hennart (2007), pp. 395-396, describing the form of operation firms use to enter foreign markets. The authors note no consensus that these modes sit on one dimension of control, commitment and risk (p. 419), and count 16 mode types in earlier studies (p. 397). <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-market-entry-strategy-fig02/">View exhibit</a>.</figcaption>
</figure>