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Market Entry Strategies (Intermediate Export Modes (Advantages (Low cost,…
Market Entry Strategies
Export Modes
Cooperative Export Modes
Indirect Export Modes
Direct Export Modes
Advantages
No Facilities
Low Cost
No Staffing or Hiring
Low Risk
High Flexibility
Disvantages
Miss Opportunities
Competition
Little Control
Intermediate Export Modes
Licensing
Contract Manufacturing
Franchising
Management Contracting
Joint Venture/ Strategic Alliance
Advantages
Low cost
Sourced Manufacturing
Not a lot of staff
Disadvantages
Hard to back out
Damage reputation
Little Control
Hierarchical Modes
Sales and Production Subsidiary
Resident Sales Rep./ Branch/ Sales Subsidiary
Region Centres
Transnational Organization
Domestic-Based Sales representative
Advantages
Complete Control
No Profit Sharing
Disadvantages
High Cost
High Risk
Low Flexibility