Please enable JavaScript.
Coggle requires JavaScript to display documents.
CS3 - Coggle Diagram
CS3
Foreign Market Entry
reasons firms go international
Technology
access local knowledge or talent
reduce business risk
better or lower cost factors of production
make a capabilities argument
access a larger narket
economically developed markets
OECD countries
China
India
leverage core capabilities
McDonald's or Yum! Brands
develop new capabilities
location specific advantages
doing IT development in India
learning from foreign country operations
how to enter foreign countries
licensing(franchising)
contract to transfer intagibles
e.g.technology,know how,brands
monitor the performance
strategic alliances
involve more active coordination
exporting
sale into foreign markets
export directly
export inderctly
via local agent
joint ventures
jointly-owned independent company
manage jointly
Starbucks with India Tata group
share profits
wholly owned subsidiary
greenfield unit
build from the ground-up
brownfield venture
acquire fixed assets reuse
acquisition
buy a local company and intergrate