Thursday, September 22, 2016

Green field strategy & Brown field strategy



Green-field Strategy
Greenfield Strategy refers to starting of the operations of a company from scratch in a foreign market. This process is includes building an entirely new subsidiary in a foreign country from scratch to enable foreign sales and/or production. The process includes: buying/leasing of lands, construction of new facilities, transfer of managers and employee and the launch of the operations.
example: McDonalds, Starbucks, Nissan, Fuji-film, Hyundai

Acquisition or Brown field strategy
In general sense it is the process of combining two companies from different countries to establish a new legal entity. When one company takes over another company and clearly establishes itself as the new owner, then the purchase is called an acquisition. Acquisition can be friendly or hostile.
example: Tata group acquired Corus, Warid Telecom acquired by Airtel, Sheba telecom acquired by Banglalink.