ways in which the college can enter the New Zealand market
There are various ways in which the college can enter the New Zealand market. First, it can acquire an existing private college in that country, especially the one with substantial market share. Additionally, the target college should be strategically placed to add value to the college. Although this method provides a quick way to the New Zealand market, it has several disadvantages. For example, the integration of the two institutions might be a challenge due to cultural differences. Second, acquisition prices have always been known to be high, and about 70 percent of acquisition fails (Hitt & Uhlenbruck, 2016)
The second approach is through a Greenfield project. Under this method, the investors buy land in a foreign country, build the facility, and operates its business as an entity. This technique requires initial capital, time-consuming, and risky. However, it is urged that this method is the best where the market is stable as it is always profitable in the long run (Hitt & Uhlenbruck, 2016). This is another method the college can use to enter into the New Zealand Market.
Partnering is another common method that companies use to enter foreign markets. Partnering can take various forms from a simple to a sophisticated strategic arrangement. This market entry strategy is useful, especially in the market where is a vast cultural difference is substantial between the foreign investors and the locals. Also, the methods ensure that both the risk and the reward are bone by the two companies (Picken, 2018). Lastly, the college can form a joint venture with a local college in New Zealand as a way of entering the market. The arrangement will allow the two colleges to change the name, perhaps or form a new institution with an utterly deferent name. Since New Zealand has a robust infrastructure that supports foreign investment in addition to trade agreements with Canada, the best method for the college to enter the target market would be a non-equity method that will ensure it has control of its investment. Depending on the financial muscles the college has, it may choose either acquisition or the greenfield project to enter into the New Zealand market.