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Market Entry Strategies - Coggle Diagram
Market Entry Strategies
Direct Exporting
Advantage: You own resources
Sell directly to market
Work closely with agents/distributors
Disadvantage: May not be able to work with multiple companies
Licensing
Advantage: able to transfer rights
Allow use of product/service
market or production
Disadvantage: no guarantee it'll sell
Franchising
Rapid market expansion
Advantage: Brand recognition
repeatable business model
Disadvantage: Future competition with itself
focused in North America
Partnering
Disadvantage: some required in foreign markets
Important with differences
Culture
Social
Contacts
Language
Business
Customers
Advantage: connections already available
Joint Ventures
Create 3rd independent company
2 companies work together
geographically
Production
build 3rd company to oversee
Advantage: Share product/risk
equally shared
Disadvantage: potential strong disagreements
Buying a company
Disadvantage: Most costly
Advantage: Status already built
benefits from pre-existing customer base
Piggybacking
Helps go international
Go to people with connections
Advantage: low cost/risk
Sell domestically
Domestic sells internationa;
Disadvantage: Relying on others
Turnkey Projects
Environment
Archeology
Construction/engineering
Ground up- given to client
Advantage: no risk in not being paid
Disadvantage: Always working under different people