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International Market Strategies : (Advantages :check: (Direct Exporting…
International Market Strategies
:
Advantages
:check:
Direct Exporting
Selling directly into the market you want. Established distributors.
Licensing
Owning the rights to a product. 2. Brand Recognition
Franchising
Repeatable Models 2. Can be translated easily internationally.
Partnering
Joint Ventures
:silhouettes:
Access to new markets. 2. Increased Capacity.
Buying a Company
Infrastructure already exists. 2. Provides immediate status wihin the new market
Turnkey Projects
Ready to use. Usually financed by the World Bank
Greenfield Investments
Built from the ground up. 2. Easier adaption into foreign markets.
Disadvantages
:warning:
Direct Exporting
High Distributions costs. 2. Dependent on distributor.
Licensing
Competition - Brands will only allow a certain amount of licenses to be purchased. 2. Possible theft of idea if you sell a license for your product.
Franchising
Costs tend to be higher than expected. 2. : Franchiser dictates the terms. :pen:
Joint Ventures
Partners may have different objectives. Different level expertise among partners.
Buying a Company
Costly. 2. May be poorly managed
Turnkey Projects
Lack of authority on factory design
Piggy Backing
Low Level of control. 2. Inadequate feedback
Greenfield Investments
Cost the most of all the strategies. 2. Most amount of work of all the strategies.
What Is...?
Turnkey Projects
- A facility is created, including: design, construction, equipment, etc. Then turned over to the purchaser.
Greenfield Investment
- A parent company will construct a sub-company in a foreign country
Joint Venture
- A partnership that involved the creation of a new company
Direct Exporting
- Selling directly into the market.
What Is....?
Licensing
- a firm will transfer the rights to use the product or service to another firm.
Franchising
- An ongoing relationship in which a franchiser provides licensed privilege to the franchisee to do business and offers assistance in standing up the business.
Partnering
- Two or more individuals who share management and profits.
Buying a Company
- purchasing an established organization
Piggy Backing
- in which two or more firms represent one another's complementary products in markets
Piggy Backing
Removes a lot of risk. 2. Fast entry into international markets