Abstract
This article analyzes the international market entry strategies of U.S. catalog firms. Market entry strategy was conceptualized in terms of market selection (English- or non-English-speaking country) and mode (exporting, licensing, joint ventures, subsidiaries, and retail stores). The results of a sample of 57 firms active in international markets found that firms entering a culturally close market (English-speaking) were more likely to report greater revenues per catalog and overall performance than those that entered non-English-speaking countries. A cluster analysis of several modes reported by the sample of firms revealed four generic modes. These four generic modes ranged from simple direct exporting to more complex ones that used subsidiaries and retail stores in international markets. Mode of entry was not related to performance. U.S. catalog firms are using a conservative approach to international markets by exporting to countries where the level of uncertainty is low. Firms using this strategy may benefit from lower costs and greater revenues per catalog.
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