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Market Entry Strategies - Coggle Diagram
Market Entry Strategies
Exporting
Low costs, low risk, high flexibility (1)
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Franchising
Opportunity to expand overseas, earn a profit while taking an indirect management approach. (5)
High startup costs, less flexibility, less control, higher fees. (6)
Joint Ventures
Access to new markets, increased capacity, sharing of risks and costs, access to greater resources. (8)
Unclear objectives, poor communication, different expectations, unequal distribution of work and resources, cultural barriers. (8)
Company Ownership
Advantages include the company has substantial market share, are a direct competitor to you or due to government regulations this is the only option for your firm to enter the market. (2)
Disadvantage include more costly and determining the true value of a firm in a foreign market will require substantial due diligence. (2)
Piggybacking
Easy access to international markets, cost reduction, and more sales. (4)
Less control, don't have sole control of your company's reputation, hard to meet growing demand. (4)
Turnkey Projects
Reduced management efforts, consistent quality expectations, condensed project timeliness. (7)
Requires strong scope definition, design cost contingency, dependent on trust of full scope. (7)
Greenfield investments
Help comply with government regulations in new markets, beneficial for large, established organizations. (5)
High cost, high involvement and high risks. (2)