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Market Entry Strategies, Advantages, Disadvantages, Advantages,…
Market Entry Strategies
Direct Exporting
You have representatives and other agents from that certain country representing you so they know more about the market than you.
The people you hire are the face of your company in that country so it can be risky if proper hiring techniques aren't used
Licensing
You have little to no control in the situation now that you have turned over the product to the other company
Another company takes over control of the product. If they have a high market share it can be very useful to have them on your side
Franchising
They can become your competitor in the future as well as not all companies are set up to be a successful franchise
A person pays to have your brand and you in return get some of their profits while they take over that specific location of your company
Partnering
Sometimes partners can not be as helpful as hoped for and partnerships can go bad and result in a loss for the company
If the right partner is chosen than they can bring not only customers but also knowledge of the local market you are trying to get into
Joint Ventures
The two companies partnering have no influence on the third party company since it is independently owned
A third party company that has no bias in the situation can take control and try to find the best for both the companies involved
Buying a Company
Could be pricey in order to get the company as well as the customers who were loyal to that company might not stay to yours
If the company you purchase has a high market share you instantly have access to the market, also could remove a competitor from the market
Piggybacking
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You sell your product to a large company with already established market share and they take the marketing and responibility for the product
Turnkey Projects
The plant, once built is in another governments hands normally and you are removed from the situation
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