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Entry Mode (Intermediate Entry Mode (Licensing (Reason (lack of expertise,…

- - - - dilute value
        
        Pierre Cardin
    - - licensee's tech & product
    - - core competencies
      - lack of expertise
        
        financial
        
        managerial
        
        marketing
      - at the end of PLC
        
        stretch
      - handsome margin
      - government regulation
      - constraints on imports
  - - - local resource knowledge
      - more adaptation
      - develop a successful master
    - - control
      - commitment of master
      - Build-A-Bear in Germany
    - - product & trade name
        
        Coca-cola
      - business format 'package'
        
        trademark
        
        copyright
        
        designs
        
        patents
        
        know-how
        
        market research
        
        trade secrets
  - - - Complementary tech/ skills
      - compensate international experience
        
        lower costs
        
        speed of entry
      - foreign owernship restriction
    - - strategic alliance
        
        non-equity cooperation
        
        commitment
      - joint vernture
        
        contractual non-equity
        
        equity joint venture
    - - X coalition
        
        up/downstream
      - Y coalition
        
        complementary product line, distribution
        
        Irn-Bru with Pepsi Bottling Group
    - - caradigm
        
        data & interlligence
    - - mobile+telecommunication
  - - - bookstore
      - united airlines
      - Pepsico
      - Kraft foods
- - - - Firm size
      - International Experience
      - Product/ Service
    - - Sociocultural distance
      - Country risk/ demand uncertainty
      - Market Size & growth
      - Direct/ Indirect trade barriers
      - Intensity of Competition
      - Small number of intermediaries
    - - Risk adverse
      - Control
      - Flexibility
    - - know-how
- - - - advantage
        
        little credit risk
        
        easiest
      - disadvantage
        
        exporter little control
        
        consumer behaviour
    - - disadvantage
        
        commission
        
        immediate sales potential
        
        many product ranges
        
        less attention
        
        disadvantage of a particular firm
    - - complementary
      - non-competitive product
      - Advantage
        
        Rider
        
        low risk
        
        distribution systems
        
        learn experience
        
        Carrier
        
        get the product quickly
        
        low-cost (no need R&D)
      - Disadvantage
        
        Carrier
        
        quality control
        
        warrenty
        
        Rider
        
        control over the market
  - - - size
      - facilities
      - inventories
      - knowledge of promo
      - reputation with suppliers
      - customer & bank
      - resource control
    - - performance
      - market attractiveness
  - - - clothing
    - - furniture
- - - - Advantages
        
        Rapid entry
        
        immediate market share
        
        access to
        
        labour
        
        local knowledge & contacts
        
        distribution channels
      - Disadvantages
        
        high risk
        
        Integration
    - - advantage
        
        incorporation
        
        no change inertia
    - - control
      - profit
      - able to leverage experience