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Entry Strategies - Coggle Diagram

- - - - Company sells directly to consumers therefore they create trust between the consumer and the company
    - - Because the company sells directly to the consumer the company can get feedback from its target audience allowing it to improve weak points.
  - - - With little support for the company it would be hard for a local business to deal with customer service
    - - It requires so much money and man power to actually use this method effectively
- - - - Being fully invested can lead to massive profits
    - - By having many stores or operations this leads to a growth in labor which then produces a growth in sales
    - - By having multiple operations the managers can be highly motivated to help the company grow because if they fail or do a bad job it directly reflects them.
  - - - One wrong move can ruin the whole companies reuputaion
    - - It costs a hefty amount money to open multiple operations and hire the required staff
    - - Sharing private info with franchisees can cause future competition and sometimes the franchisees may have different goals for the franchise
- - - - Can be complications in the future if someone bails
    - - Things can be unpredictable if your partner switches up
    - - You are responsible for any mess ups
  - - - The cost and risk is split between the partnership
    - - By having a partner it can lighten the load
- - - - Sharing knowledge and ideas can create more creativity and more innovative ways in doing business
    - - By using 2 different companies this can lead to better and more connections and staff specialists and also more outside resources
    - - Both investors share the risk and split the cost of things making it cheaper and safer to start the business
  - - - Both companies can have different views towards things and may not explain everything thoroughly or they may not exactly understand correctly some ideas that are said
    - - Splitting up the pay can cause problems in agreement if one company is doing more for the venture than the other it could be unfair
- - - - The rider does not need to invest in research, development, or testing
- - - - By giving the responsibility of the project to one contractor it makes it that much easier to manage because it takes certain things off of the plate and allows the owner to focus on other things
    - - It is a lot less expensive when everything goes through one contractor
    - - Usually have a limited budget so it is better for smaller companies
  - - - They use a process highest bidder wins so it can be hard for the smaller companies to get a bid
- - - - They do this by reaching out to the audience that the existing company has already attracted
    - - It increases production by lowering production costs
  - - - This can happen if the company bites off more than they can chew
    - - The staff from the new company may disagree with your values
- - - - Creates an easier entry into foreign markets
        
        Having a licensor can help the company jump some border requirements to get products overseas faster
      - Low risk high reward for both parties
        
        Main company has reduced risk for manufacturing product and the lincensor has reduced risk for selling the product
      - Creates new business opportunities
        
        Requires less money to start a business opportunity because you can purchase a license instead of an ownership.
    - - Revenues are not guaranteed
        
        If the licensee can not generate revenue then there will be none
      - Creates competition
        
        Many licensees become competition for the licnensors
      - Only offered for a limited time
        
        There will always be an expiration date for the licensee