Documente Academic
Documente Profesional
Documente Cultură
Presented By
J. Mano
10MBAB32
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Introduction
The need for a solid market entry decision is an
Introduction
Global marketers have to make a
process:
1. Select indicators and collect data
2. Determine importance of country indicators
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Risk Government Regulations Competitive Environment Local Infrastructure Company Objectives Need for Control Internal Resources, Assets and Capabilities Flexibility
Kong)
Emerging
Philippines)
Growth
Maturing
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Explanation
Regarding entry modes, companies normally face a
Exporting
Indirect Exporting
Piggyback Exporting
Direct Exporting
departments
Licensing
Licensor and the licensee
Benefits:
lack resources
Faster access to the market
markets
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Licensing
Limitations:
affected
Licensee may not be committed Lack of enthusiasm on the part of a
licensee
Biggest danger is the risk of opportunism
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Licensing
How to seek a good licensing agreement:
licensees
Contract parameter (technology
disputes)
Franchising
Franchisor and the franchisee
Master franchising
Benefits:
investment
Franchisees profits tied to their efforts Availability of local franchisees
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knowledge
Franchising
Limitations:
Revenues may not be adequate Availability of a master franchisee Limited franchising opportunities overseas Lack of control over the franchisees operations
Contract Manufacturing
Benefits:
Contract Manufacturing
Limitations :
Contract manufacturer may become a future
competitor
Lower productivity standards Backlash from the companys home-market
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Contract Manufacturing
Qualities of an ideal subcontractor:
Flexible/geared toward just-in-time
delivery
Able to meet quality standards
Solid financial footings
business
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Joint Ventures
Cooperative joint venture
Benefits:
Higher rate of return and more control over the
operations
Creation of synergy
Sharing of resources
Access to distribution network Contact with local suppliers and government officials
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Joint Ventures
Limitations :
Lack of control
Lack of trust
Joint Ventures
Drivers Behind Successful International Joint Ventures :
beginning
Bridge cultural gaps Gain top managerial commitment and
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respect
Greenfield Operations
Benefits:
Greater control and higher profits Strong commitment to the local market on the
part of companies
Allows the investor to manage and control
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Strategic Alliances
Types of Strategic Alliances
Simple licensing agreements between two
partners
Market-based alliances Operations and logistics alliances Operations-based alliances
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Strategic Alliances
The Logic Behind Strategic Alliances
Defend Catch-Up Remain Restructure
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Strategic Alliances
Cross-Border Alliances that Succeed:
Alliances between strong and weak partners
seldom work.
Autonomy and flexibility Equal ownership
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Strategic Alliances
Other success factors:
partners organizations
Strong alliance managers are the key
experience
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Timing of Entry
International market entry decisions should also
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Exiting a Market
Reasons for exit:
Sustained losses Volatility Premature entry Ethical reasons Intense competition
Resource reallocation
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Exit Strategies
Risks of exit:
Fixed costs of exit Disposition of assets Signal to other markets Long-term opportunities
Guidelines:
Contemplate and assess all options to salvage the
foreign business
Incremental exit Migrate customers
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Reference
www.austrade.gov.au/Market-entry-
strategies/default.aspx
www.quickmba.com/strategy/global/marketentry/ http://en.wikipedia.org/wiki/Market_entry_strategy http://www.austrade.gov.au/Market-entry-
strategies/default.aspx
http://www.fao.org/docrep/W5973E/w5973e0b.htm business-fundas.com/.../market-entry-strategy-for32
international-busin
Thank You . . .
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