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Direct Exporting, Franchising / Licensing, Joint Venture / Partnership,…
Direct Exporting
Maintain Control
Keep Manufacturing Internal
Low Entry Costs
Not infiltrated into new country
Must be able to meet production
High Distribution Costs
Access a new market
Dependant on Distributors
Trade Barriers
Take Orders at Own Pace
Franchising / Licensing
Dependant on Franchisee
Easy to Setup
Training Involved
Lack of Control over Production
Lower Revenues for Parent Company
Delegate Risk
Access to Blocked Countries
Passive Income
Joint Venture / Partnership
Split Revenues
May not agree with other company
Shared Control
Shared Risk
New Insights and Expertise
Shared Resources
Harder to Make Decisions
More Likely to Succeed
Wholly Owned
Biggest Risk
Most Expensive
Non-Flexible
Entering Unknown Market Alone
In Complete Control
Low distribution costs and work around Barriers
Infiltrated into New Market
Potential for Big Money
Pros of Direct Exporting
Cons of Direct Exporting
Cons of Franchising / Licensing
Pros of Franchising / Licensing
Cons of Joint Venture / Partnership
Pros of Joint Venture / Partnership
Cons of Wholly Owned
Pros of Wholly Owned