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Market Entry Strategies, Direct Exporting, Licensing, Franchising,…
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Direct Exporting
Disadvantages: Requires more time and energy and you are held accountable for whatever happens (Delaney, 2019).
Advantage: Easiest, most cost effective, less investment without great commitment, and better quality control measures (International market entry strategies, 2014).
Licensing
Disadvantage: Lower revenues than other market entry strategies and lack of control over production and marketing (International market entry strategies, 2014).
Advantage: Minimal business costs and it is simple and quick to implement (International market entry strategies, 2014).
Franchising
Advantage: Simple and quick to implement, business costs are low and you have the rights to use your trademark (International market entry strategies, 2014).
Disadvantage: Revenues are low and there is a lack of control over production and marketing (International market entry strategies, 2014).
Partnering
Disadvantage: Potential for conflict between parties, and a slower more difficult method of making decisions (Korchak, 2017).
Advantage: Local market knowledge and contacts (Market Entry Strategies, n.d.).
Joint Ventures
Advantage: Closer control over production, better local market intelligence, and reduced risk (International market entry strategies, 2014).
Disadvantage: Conflict of interest in topics of profit shares, amount invested, and the overall management of the business and marketing strategy (International market entry strategies, 2014).
Buying a Company
Disadvantage: Most costly and require substantial due diligence (Market Entry Strategies, n.d.).
Advantage: Status of being a local company, benefit from having local market knowledge, and can obtain an established customer base (Market Entry Strategies, n.d.).
Piggybacking
Advantage: Reduced risk and cost (Market Entry Strategies, n.d.).
Disadvantage: Problem with maintaining the quality and quantity of product and potential loss of control of the product (Market Entry Strategies, n.d.).
Turnkey Projects
Advantage: Risk of not being paid is eliminated (Market Entry Strategies, n.d.).
Disadvantage: Risk of revealing companies secrets to rivals (Market Entry Strategies, n.d.).
Greenfield Investments
DisadvantageL Most costly and holds the highest risk (Market Entry Strategies, n.d.).
Advantage: Everything is done to specifications and you have complete control of venture (Market Entry Strategies, n.d.).