Nubs mba group management project team
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Entry-mode strategyConsidering the varying opinions about internationalisation for SMEs, it may prove useful to adopt a more hybrid approach. One way to go about identifying possible entry mode in Australia would be take a look at the model proposed by Whitelock (2002). It has been developed by integrating the positive aspects of four popular theories of internationalisation: Uppsala model (incremental growth), Eclectic Model (lower transaction costs), Industrial networks (build relationships) and Business strategy (resource based competence). Based on the above mentioned models, the framework proposed by Whitelock (2002) considers both the market and firm factors for deciding upon the entry mode. 
Figure 24 - Whitelock's Entry Mode Selection Model (2002) Let us analyse the market factors (left) from Whitelock’s (2002) model. Our environmental analysis and research findings from interviews and web based surveys indicate that Australian is an attractive market for eye-tracking with strong potential for growth. If one considers the competition then at present there around 10 competitors in Australia with only three of them having their own eye-tracking labs. However, as discussed in the positioning section; Realeyes can differentiate itself by promoting itself as a specialist eye-tracking service provider. The psychic distance is very low considering the Hofstede scores of Australia and United Kingdom are very similar. Accessibility is an issue because Australia is long way away from United Kingdom. As a result, managing all operations from UK might not be feasible. If one considers the Firm (right) then the firms’ existing management has proven expertise in expanding in foreign markets like United States and Europe. This is quite an achievement considering that the firm is only about two years old. It would be right to describe Realeyes as a born global firm. Oviatt and McDougall (1994) define ‘born global’ as a firm that from inception seeks to derive significant competitive advantage from the use of resources and sales of outputs in multiple countries. Let us take a look at their previous foreign entry modes. In both United States and Poland they have established local presence through a subsidiary. In these markets they have sought people with the right experience and a good network to grow their business. This approach has helped them accumulate experiential knowledge about new markets. Also, they have achieved high levels of flexibility by committing human and technical resources. As mentioned before, flexibility is important. A subsidiary adapts services to local circumstances more cheaply than a strategic partner (Sharma et al, 2006). Based on the above analysis and the results from environmental research, interviews and surveys we can conclude that Realeyes should opt for local presence to establish presence in Australia. In other words, a Realeyes subsidiary (preferably with the same name) including a registered office in a business-friendly area like New South Wales, Sydney with a registered landline. One would also look to have virtual presence with a website having Australian domain name. Initially, there should be at least one person working full time for Realeyes and provide complementary skills such as market specific sales expertise, and easy access to local resources for data collection. Realeyes has to aim for successfully presenting itself as a specialist and cost-effective eye-tracking service provider in the market. Once it achieves this, then there is a good possibility that some of the existing competitors who are presently using third party eye-tracking services may approach Realeyes as strategic partners (Based on Tony Biddle - Usability One Interview). This hybrid approach can be good strategy because Coviello and Munro (1995) suggest that strategic alliances can complement direct entry into foreign market to accelerate sales growth. It also helps grow Realeyes’ business network. Having discussed the entry-mode strategy in this section, the next section will propose Branding for Realeyes in Australia, followed by marketing mix.
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