Entry mode choice of travel service firm: The case of Olympia in China

Abstract

This study aims to analyze the entry mode choice of service firms, focusing on the tourism industry. More specifically, this research reviews the international entry mode literatures, identifies the factors that may influence the entry mode choice of tourism firm to China market and provides suggestions for managers to make better decision of entry modes in future.

This research is based on qualitative single case study approach to have an understanding of Finnish travel service firms' strategic decision of entry mode. The collection of data is conducted in two phases in this study. The first phase utilize documentation as second hand data. The second phase of empirical data collection mainly conducted by semi-structure interview with Mr. Matti Julin, president of Olympia, who has rich experience and knowledge of entry mode decision at the beginning of firm's international activities.

The study does not fully support the previous entry mode studies. In the conclusions, the results shows that the three factors, including firm size, market attractiveness of host country, service's sensitivity, have the most significant influence on the degree of control.