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Market Entry Strategies (Intermediate Modes (Licensing (Disadvantages…

- - - - Dependent on Partners
    - - Synergy Effect
      - Costs Distributed among Partners
  - - - Lack of Knowledge on Markets
      - Dependent on Intermediary
      - Low Profitability
    - - Low Risk
      - Low Requirements for Staffing
      - Low Cost
  - - - More Expenses and Time
      - Many Responsibilities
      - Hard to Handle Customer Needs
    - - Higher Profits
      - No Middlemen
      - Close Relationship with Buyers
- - - - Disloyalty Possibilities
      - Low Income
      - Lack of Control
    - - Low Risk
      - Steady Income
      - Low Entry Cost
  - - - Hidden Costs
      - Loss of Control
    - - Cost Advantages
      - Operational Advantages
      - Quality Control
  - - - Share Profits with Franchisees
      - Potentially have Conflicts with Partners
      - Control Cost
    - - Rapid Foreign Expansion Possibilities
      - Simple Expansion Possibilities
      - Low Cost
  - - - Conflicts with Contractors
      - Contract is Questionable
      - Less Privacy
    - - Continuity is not Affected
      - Distribution of Responsibility
      - Time to Work in other Areas
  - - - High Risk
      - Conflicting Interests of Partners
      - High Entry Costs
    - - Multiple Sources of Knowledge
      - Risk Spread Out
      - Synergy Effect
- - - - "Take Money from Host Country"
      - High Cost
      - Largest Time Investment
    - - High Market Share
      - High Profits
  - - - High Investment
      - Low Flexibility
    - - Market Access
      - Control of Operations
  - - - Very Complex
      - Socially Complex
      - Need of Tacit Knowledge
    - - Scale Efficiency
      - Synergies on Global Scale
  - - - Expensive for Markets Far From Home
      - Travel Expenses are High
    - - Close with Customers
      - More Control Over Shares
  - - - Outsider Decision Making
      - Outflow of Wealth
      - Exploitation of Cheap Labor
    - - Makes Technological Contribution
      - Exports are Enhanced
      - Larger Economic Impact