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Why is the entry mode of joint venture the best when entering the Chinese video game market?
Context:
You are the CEO of a software company that develops video games for various gaming platforms. You have developed a strong brand with your differentiation strategy. Your company is known for its quality games that are entertaining and reasonably priced. Your games are not the most expensive nor are they the cheapest. Currently, your headquarters is in San Francisco, and you only sell your product in the U.S.
Video games are becoming increasingly popular in China, and the company wants to expand into the growing Chinese market. In making this decision, it is important to know that intellectual property rights receive far less protection in China than in the U.S. Therefore, there is a much greater chance that pirated copies of any video game will be sold.
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