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