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Global Market Entry Tactics

The document discusses various entry strategies for companies expanding into international markets including exporting, licensing, strategic alliances, joint ventures, foreign direct investment, and franchising. Each strategy is listed with its key advantages and disadvantages. For example, exporting allows companies to increase sales and profits while lowering costs but it also brings tougher competition and extra costs. Licensing gives opportunities for low-risk manufacturing relationships but provides limited participation returns.

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SaifSaemIslam
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76 views3 pages

Global Market Entry Tactics

The document discusses various entry strategies for companies expanding into international markets including exporting, licensing, strategic alliances, joint ventures, foreign direct investment, and franchising. Each strategy is listed with its key advantages and disadvantages. For example, exporting allows companies to increase sales and profits while lowering costs but it also brings tougher competition and extra costs. Licensing gives opportunities for low-risk manufacturing relationships but provides limited participation returns.

Uploaded by

SaifSaemIslam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ENTRY STRATEGIES

ENTRY COUNTRIES ADVANTAGES DISADVANTAGES


STRATEGIE
S

Exporting United Kingdom, 1. Increase of 1. Tough


Switzerland, USA, Canada, sales and profit competition
Japan, China, Australia, 2. Expand life 2. Extra cost
Latin America, Italy, cycle of 3. Lack of
France, Spain and Portugal, product market
Swiss and Austria, 3. Lower per unit information
Belgium/Netherlands/Luxe cost 4. Product
mbourg, Northern Europe, 4. Diversification adaptation
Southern and Eastern 5. Financial risk
Europe, Russia, Middle East
and Africa, Asia-Pacific

Licensing Japan, Canada, Mexico, 1. Opening the 1. Limited form


USA door to low of
risk participation
manufacturing 2. Potential
relationships returns from
2. Getting most marketing
out of 3. Licensees
marketing becoming
effort competitors
3. Capital not 4. Requiring
tied up in considerable
operations fact finding,
4. Options to buy planning,
into partner investigation
exist and
interpretation

Strategic USA, Australia, India, 1. Access to new 1. Upholding


Alliance Japan customer base trust and
2. Increased honesty
brand 2. Building a
awareness mutually
3. Opportunity to beneficial
reach new
markets alliance
4. Access to 3. Choosing the
supplementary right partner
services 4. Knowing
when to
reassess the
alliance

Joint China, India, Croatia, Iran, 1. Sharing of 1. Sharing of


Venture USA, German, Canada risks with income with
partner partner
2. Opportunity to 2. Imbalance in
gain new levels of
capacity and expertise,
expertise investment or
3. Gaining new assets brought
technological into the
knowledge venture by the
4. Entering different
related partners
businesses 3. Partners don’t
5. Entering new provide
geographic enough
markets support and
6. Access to leadership
greater 4. Poor
resources integration
and co-
operation

FDI India, Canada, China, 1. Consumer 1. Entry of MNC


Mexico, Ireland benefit super market
2. Increase in 2. More
savings and investment of
investment foreign
3. Infrastructure companies
and technology 3. Large giants
transfer try to
monopolize
1. Getting 1. Demanding
Franchising Austria, France, Germany, profitable the highest
Italy, United Kingdom, 2. Getting level
USA, Singapore opportunity to commitment
build capital as 2. Investment is
well as not
earnings guaranteed
3. Getting help 3. Having full
from the major responsibility
banks

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