Companies often adopt a phased entry strategy: they start off with a minimal-risk strategy; once the firm becomes more familiar with the market and the uncertainty drops, it may switch to a higher commitment mode, such as a wholly owned venture.

Question

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This approach allows companies to gradually increase their investment and involvement in a new market as they gain more understanding and confidence, thereby managing and mitigating risks associated with market entry.

Companies Often Adopt a Phased Entry Strategy: They Start Off