Please enable JavaScript.
Coggle requires JavaScript to display documents.
Week 6 - Market Entry Strategies - Coggle Diagram
Week 6 - Market Entry Strategies
Direct Exporting
Advantage - Agents and Distributors often become the face of your product and get further out into other markets
Disadvantage - If you chose the wrong agent / distributor could ruin the reputation of your company internationally
Licensing
Disadvantage - Very timely and costly- could take months or years
Advantage - Very sophisticated agreement and product is already developed
Franchising
Advantage - Minimal business operation costs
Disadvantage - Revenue and profits significantly lower and potentially lack of control
Partnering
Advantage - Very helpful in markets that are different than your own
Disadvantage - Almost necessary in some countries as it can be required
Joint Ventures
Risks and Profits are shared equally
2 parties come together with another to create the business
Disadvantage - Conflicts of interest could occur if not set rules or agreements
Buying a company
Advantage - Local Market Knowledge immediately
Disadvantage - Very costly and can be risky, due diligence to make sure you do not over pay for the business
Turn Key Projects
Minimal Risk as the company is built and you take over
where the facility is built from the ground up and turned over to the client ready to go
Disadvantage - Costly but ready to go
Greenfield Investments
Disadvantage - Very costly and highest risk
Advantage - High Involvement and you create it from start to finish
All of these will have extensive costs but predominately at the end of the day the increase of sales will out weigh any of these costs