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Market Entry Strategies - Coggle Diagram
Market Entry Strategies
Direct Export
Higher profit margin
Greater financial risk
Direct contact with customer
Limited market coverage
Retail partners
Greater global market share
Fluctuations of exchange rates
Increased visibility of product
International shipping and delivery issues
Franchising
Cultural differences
Compliance challenges with business laws and regulations
Favorable government regulations
Exposure to new market(s)
Licensing
The licensee has knowledge of market
Could lose control of your product
Will not incur costs for producing product
Only receive a portion of profits
International Expansion
Cost-effective manufacturing of goods
Business practices and cultural barriers may differ
Access to new regional markets for products and services
Managing international employees via HR and payroll
Ecommerce Partners
Eliminates need for physical store
Products can sell for little to no overhead cost
Risks for security and credit card fraud
Regulations and taxes
Buying a Company
Business plan and marketing method in place
May need to honor and renegotiate existing contracts
Market for the product has been established
Will need to invest a large amount up front and budget for professional fees
Joint Venture
Both parties involved will share risk and costs
Objectives not 100% clear and not clearly communicated to all parties
Access to better resources
Differences in cultures and management styles