Decisions about entry modes for telecom companies into digital music business: An empirical case study

Abstract

The digital music market offers an opportunity for telecom companies to furnish value-added services. However, little effort has been made to study empirically how to make a decision about entry modes for telecom companies into digital music business. This study therefore investigates various strategies that telecom companies may implement to enter the digital music industry. The results of a series of expert surveys reveal that the preference ranking of entry modes is acquisition, joint venture, and contractual agreement, respectively. Moreover, the leading key factors in selecting entry modes are complementary capabilities, hostility of environment, relational risk between firms as partners, commitment of resources, and availability of expertise. Furthermore, an importance-performance analysis was conducted to understand the different aspects that are of different performances and importance in each entry mode. The implications of the findings are also discussed.