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Analysis of China
Then, when the company had decided to do international expansion to China, it is highly recommended that a joint-venture strategy is the chosen strategy as a mode of entry. Joint-venture is created when Buster Food Inc. work together with local company in China and create a jointly owned but separate firm to sell Buster Food Inc. product in China (Mahoney, Trigg, Griffin, and Pustay, 2001). This strategy will be the best option not only because of the cultural problem that caused Buster Food Inc. will need a local partner that has more understanding about the Chinese people culture (for example: determine the best marketing strategy that able to cope all the market segments and do the working level contracts), but also because with joint-venture, Buster Food Inc. could minimize their development costs and risks by sharing them with the local partners. Thus, with joint-venture strategy, Buster Food Inc. not only maximizes all of the company's competitive advantages, but also minimizes all of the risks when do the international expansion to China. Hopefully, with this, the expansion will be success and make Buster Food Inc. become an international company.…
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