The Study On Entry Mode Of SK Company To Kuwaiti Market

After more than 20 years' efforts,China Petroleum Engineering Service companies have established a high reputation in the global service market.In particular,China's petroleum engineering service companies have increasingly gained more and more market share abroad since the "Belt and Road" initiative.Among them are the three major national oil companies,and which also led a number of high-quality private petroleum engineering service companies to accelerate the pace of overseas development.Some private companies have got successes,but also some companies failed.One of the key factor to decide the success of international business is choosing the right entry mode of international market.Due to the limited theoretical research of such aspects in oil industry,many companies usually depend on experience or intuition,so this paper aims to find out one decision-making method for private companies to adopt through analyzing the whole process of SK Company choosing its suitable entry mode to Kuwaiti market.This paper studies the five classic theories of international market entry methods(Uppsala Internationalization Model,transaction cost theory,international production eclectic theory,organizational capability theory,and decision-making process theory),and analyzes the research directions and limitations of these five classic theories,the comparison is also made among them.At the same time,the typical international market entry methods are classified and combined with the characteristics of the petroleum engineering service industry,eleven common international market entry methods of the petroleum engineering service industry are summarized.In order to determine the most suitable entry mode for petroleum engineering service companies to enter into international markets,an analysis of the influencing factors of the international market entry method is necessary.This study classifies the factors that affect the international market entry methods of the company into four categories,which are the intrinsic character of the entry method,features,corporate capability,market factors of target country,and external environmental factors,and totally fifteen sub-factors included in these four factors are described and summarized in detail.In the final part of the theory,the decision-making methods for international engineering enterprises to select market entry methods are adopted,furthermore TOPSIS analysis method is introduced.Considering the characteristics of the petroleum engineering service industry,the qualitative and quantitative analysis methods were used to determine the suitable entry mode for petroleum engineering services companies to enter into the international petroleum service market.After the decision-making method is confirmed,the most important step is to adopt it on the SK company to choose the most suitable entry mode to Kuwaiti market.Firstly,it analyzes the overall situation of SK Company,the international market developing status,and historical business experience in foreign markets.After comprehensive analysis and evaluation by using analyzing framework and TOPSIS method,Strategic alliances is the best way for SK to enter the Kuwaiti market.Finally,this study further raises the issues that SK companies may face in entering the Kuwaiti market through strategic alliances,and the necessary measures are also listed for solving the possible risky points.