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Market Entry Strategies Advantages/Disadvantages (Piggybacking (A…
Market Entry Strategies Advantages/Disadvantages
Greenfield Investments
A disadvantage is government regulation ("Greenfield Investments", 2020).
A disadvantage is that is it very risky ("Greenfield Investments", 2020).
An advantage is high level of control over staffing and brand image ("Greenfield Investments", 2020).
An advantage is high level control over the business ("Greenfield Investments", 2020).
Licensing
A disadvantage is more opportunities for theft to happen (Gaille, 2018).
A disadvantage is it could damage reputation for both parties (Gaille, 2018).
An advantage is an easier entrance into the foreign market (Gaille, 2018).
An advantage of a license is you can start earning profits right away (Gaille, 2018).
Partnering
A disadvantage is more conflicts based off of more opinions because of multiple employees ("What Are the", 2020)
A disadvantage is being liable for your business partner's debt or other liabilities ("What Are the", 2020)
An advantage is being able to bounce off ideas with people and have more moral support ("What Are the", 2020).
An advantage is more strategic connections to bring in more cash ("What Are the", 2020).
Joint Venturing
Disadvantage is added competition to the market (Gaille, 2018).
An advantage for both business parties there is a reduced risks (Gaille, 2018).
Disadvantage is that joint venturing is only offered within a limited time (Gaille, 2018).
An advantage is that it creates business opportunities (Gaille, 2018).
Buying a Company
An advantage to buying a company is you will already have cash flow ("Advantages and disadvantages", 2019).
A disadvantage is the business may need new equipment that costs money ("Advantages and disadvantages", 2019).
An advantage is the "start up" has already been done ("Advantages and disadvantages", 2019).
A disadvantage is the business may have low morals due to previous poor management ("Advantages and disadvantages", 2019).
Piggybacking
A disadvantage is having potential erosion of your business or brand ("Methods of Exporting", 2019).
An advantage is, "No increased financial commitment" ("Methods of Exporting", 2019).
An advantage of piggybacking is a fast entry into international market ("Methods of Exporting", 2019).
A disadvantage is having little to no control ("Methods of Exporting", 2019).
Direct Exporting
An advantage would be selling directly into the market you have chosen ("Market Entry", 2020).
An advantage is picking agents and distributors to represent your company ("Market Entry", 2020).
An advantage is Potential profits are higher because you are getting rid of intermediaries (Delaney, 2019).
A disadvantage is more energy, time, money that you may not have (Delaney, 2019)
A disadvantage is you are held accountable for everything and there are no "buffer zones" (Delaney, 2019).
Franchising
An advantage is reduced management demands when doing a franchising market entry strategy ("Migrator", 2019).
A disadvantage is that franchising will not work or help out a failing business ("Migrator", 2019).
An advantage of franchising is that it is a cost-effective way to start growing a business ("Migrator", 2019).
A disadvantage to franchising your own business is that in can cost a lot of money ("Migrator", 2019).
Turnkey Projects
A disadvantage is the "Lack of authority the owner has over construction and design" ("Turnkey Project", 2014).
An advantage is that investors make payments until you get paid for the overall project ("Turnkey Project", 2014).
An advantage is, "The risk of not being paid is eliminated" ("Market Entry", 2020).
A disadvantage to turnkey projects is that they only are for particular companies ("Market Entry", 2020).