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International Market Entry Strategies - Coggle Diagram
International Market Entry Strategies
This process begins with choosing which market/country/region to enter.
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Choosing the correct entry mode: 4 Factors
2) External Factors
Sociocultural distance, demand uncertainty, market size & growth, trade barriers, intensity of competition, number of relevant intermediaries
3) Transaction Specific Factors
Tactic nature of know-how, opportunistic behavior (increase transaction costs)
1) Internal Factors
Company Size, International Experience, Product Complexity, Product Differentiation Advantage
4) Desired Mode Characteristics
Internalization Mode
Hierarchical Mode
High Cost, High Risk, Low Flexibility
Externalization Export Modes
Low costs, low risk, high flexibility, low control
Different Entry Modes
Export Modes
Direct export modes
Cooperative export modes
Indirect export modes
Intermediate entry modes
Joint Venture/Strategic Alliances
Franchising
Licensing
Contract Manufacturing
Management Contracting
Hierarchial Modes
Transnational organization
Region Centers
Sales & production subsidiary
Domestic-based sales representative
Resident sales rep./branch/sales subsidiary