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Top Market Entry Strategies (Licensing (When a firm makes a transfer of…
Top Market Entry Strategies
Direct Exporting
Selling directly into the market
Turn to agents or distributors
Disadvantage: If you get in with the wrong agent/distributor there could be issues
Advantage: If you find a good agent/distributer they will be able to help you get to your end goal and make you as successful as possible
Licensing
When a firm makes a transfer of the rights to the use of a product or service to another firm.
Disadvantage: Loss of control over your invention
Advantage: Quick and easy entry into foreign markets
Franchising
Rapid market expansion
Advantage: Limited risk and liability, advertising and promotion
Disadvantage: Joint employer liability and repetitional damage
Partnering
May be required to enter certain foreign markets
Disadvantage: Can take a variety of forms, complicate decision making, and decrease profits
Advantages: Start up costs are lower, more capital available, and greater borrowing capacity
Joint Ventures
Form of partnership that involves the creation of third independent company
Disadvantage: Clash of cultures, flexibility can be restricted, and no such thing as equal involvement
Advantage: Access to new markets, sharing of risks and costs, and access to greater resources
Buying a company
Buying an existing local company
Disadvantage: most costly strategy
Advantage: Immediately have local business status and earn the benefits of a local market