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Market Entry Strategies (Direct Exporting (Advantages (Most cost effective…
Market Entry Strategies
Direct Exporting
Advantages
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allows you to concentrate your production in a single location, allowing for better economies of scale and quality control measures
As your business develops in the foreign market, you have greater flexibility to improve or redirect your marketing efforts
Disadvantages
It takes more time, energy and money than you may be able to afford
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If you have a technological product, you must be prepared to respond to technical questions and to provide on-site start-up training and ongoing support services
Licensing
Advantages
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minimal business costs as well as access to some markets which may otherwise have been closed due to government policies
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Joint Ventures
Advantages
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Closer control over production, marketing and other business operations
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Disadvantages
conflicts of interest may occur between the different parties i.e. on issues such as profit shares, amounts invested, management of the business and marketing strategy
Partnering
Advantages
useful strategy in those markets where the culture, both business and social, is substantively different than your own as local partners bring local market knowledge, contacts and if chosen wisely customers.
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