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MARKET ENTRY STRATEGIES :globe_with_meridians: (TURNKEY PROJECTS (…
MARKET ENTRY STRATEGIES :globe_with_meridians:
DIRECT EXPORTING
Avoids a middle-man
Use your resources to sell direct
Overseas subsidiary with agents & distributors
Greater control
Requires :clock2: and energy
YOU are accountable
LICENSING
Firm #1's Rights :arrow_right: Firm #2
Limited participation/lack of control
Low expense & involvement
Good for business starting in foreign operations
Licensees become competitors
Avoid tariffs & quotas
FRANCHISING
Unique buisness
Strong brand
Self-competition
Low access to supplies in foreign market
Compliance challenge
Cultural difference
PARTNERS
Combining different cultures = :+1::skin-tone-3:
Access to expertise outside your own
Quick way to gain access to new market & market knowledge
Unknown partner history
JOINT VENTURES
2 companies create 3rd company
1 + 1 = 3
Shared risk
Joint financial :muscle::skin-tone-3:
Disagreement in markets :angry:
Unmatched resources
GREENFIELD INVESTMENTS
Land, facility, operations in foreign market
Highest exposure to international business
Increased control of investment
Avoid intermediary costs
Requires company capital
Rate of change in market is fast
PIGGYBACKING
Firm takes on your product/service & marketing
Unique product or service
:arrow_down: risk
:arrow_down:cost
For companies with low exporting skills
TURNKEY PROJECTS
:moneybag: from Gov't
No risk of default on payment
:+1::skin-tone-3: entry strategy
Incentive for contractor to do well
Build :building_construction: & sell :money_with_wings:
Client can't intervene
:red_cross: control
BUYING
High cost :moneybag:
Gov't see you as a local firm
Only option?
Local company = local market benefits
Gov't regulations
Existing customer base