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market strategies (Intermediate export (Joint Venture/ Strategic Alliance,…
market strategies
Intermediate export
Joint Venture/ Strategic Alliance
Creation of a third management party
gain a business partner
equal share of risks
equal share of profit
less control
forced to depend on other businesses decisions
Franchising
good for repeatable business models
popular in the USA
moderately difficult
May create competition for yourself
must be unique
Licencing
minimal control
less flexibility
beneficial if purchaser has large market share
slightly harder
more complex
Partnering
good for support and advice when entering a foreign market
some countries require partnering
can be simple or complex
gives support to new businesses
can be restraining
Relinquishes corporate control
can cause conflict
Distrust of partner
export modes
Direct export
safer then Hierarchical modes
more control
uncertainty with agent
Flexible
Cost Efficient
Easier
Indirect export
sells indirectly to an agent or other distributor
risk of not being as professional
uncertainty in agent
easier to manage
Piggy Backing
also known as Cooperative Exporting
uses domestic companies international strategy for business
domestic companies sell your product international
offers helpful feedback
less control
a little harder to manage
Hierarchical modes
Turnkey Projects
Someone else builds the business in the intended market for you
can be highly expensive
market consultation
In most cases risk of no pay is minimal
little flexibility
Buying a Company
buy a company already established in desired market
can be convenient
already has consumers
very expensive
high risk
little flexibility
Greenfield Investment
Highest risk
highest cost
the business simply buys some land builds their business and stats operating in the new market area
start business at your own pace
the business doesn't share profit or parts of themselves through licencing or other deals
Good for small companies
better for larger companies
good for small/ large businesses
