Which entry strategy is not suitable for OTSC?

Franchising is often considered less suitable for firms like OTSC (Open Trade Supply Chain) because it typically requires a significant degree of control over the business model and operational processes. In franchising, a company allows others to use its brand and business model, which means that the franchisee operates under strict guidelines set by the franchisor. This can pose challenges for companies that need flexibility in their operations or those that have complex supply chains.

On the other hand, exporting, licensing, and joint ventures are generally more aligned with strategies that allow for varying degrees of control and adaptability in diverse markets. Exporting, for example, allows a company to enter a foreign market without a significant investment in local operations. Licensing is beneficial for companies that want to leverage their intellectual property in international markets while minimizing investment risks. Joint ventures, meanwhile, enable companies to share resources and risks with local partners, facilitating access to new markets and reducing the barriers presented by local regulations. Therefore, franchising would not be an optimal entry strategy for OTSC given its likely operational structure and business needs.