Entering and operating in international markets

Modes of Entry

Globalisation vs customisation

Strategic alliances

Global strategic partnerships

Joint ventures

Licensing

Direct exporting

Franchising

Indirect exporting

Management contracting

Contract manufacturing

Direct investment

Local distributor

Wholesaler

Agent

Less

Investment

Risk

Control

End users

Contractors

Greater control

Commitment to market

Expensive

Complex

Customs

Partnership

Multiple organisations

Similar to JV

Usually two specialties

Join together

Competitors

Pursue marketing opportunity

Share

Resources

Combine ideas

Knowledge

Selling rights

Gain royalties

Pay for product name

Production

Export management services

Foreign subsidiaries

Think globally

Act locally

Exploit economies of scale

Marketing requirements

Brand image

Adapt products

Distribution networks

Language

Language

Emerging markets

Middle-market

Low income

Premium segment

Premium markets shrinking

Good enough markets

Ethical issues