A direct investment

The other option is the direct entry mode. This means that the entering company has high control, high risk and low flexibility.

The Estonian market for E-waste is attractive and growing. To secure a part of this growing market a direct investment can be a good option. The direct investment is only suitable if the investing company sees enough long-term opportunities in the Estonian market.

(Source: [1])

Entry modes

There are two possibilities when direct investing in the Estonian market, acquisitions and Greenfield investment. Acquisition enables rapid entry and often provides access to distribution channels.

The difficulties encountered with acquisitions may lead recycling firms to prefer to establish operations from the ground up. The benefits of this approach are that the latest technology and equipment can be bought, and no established concern has to be used. This approach takes a longer time to set-up because facilities have to be built and staff has to be found.