Global Market Entry Strategy

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Course Content for BA4590

Outline:

Market entry options
Ownership Strategies
Market Exit Strategies
How internet has affected the international entry strategies

Exporting as An Entry Strategy

Indirect Exporting:
Export through a domestic intermediary
EMC: export management company
Export Agents
Direct Exporting:
Export through an intermediary located in a foreign country

Independent distributor vs. marketing subsidiary
Cost/market size
control
Specialized skills/service
Government regulation

Licensing as An Entry Strategy

Key elements:
Licensor and licensee
Right to copyright or patent and/or trademark
Royalty
Infopro of Taiwan specializes in publishing chinese-language editions of American publications under licenses
Pros:
No extra resources
Additional income
Market too small to justify presence
Minimum risks
Foster fast growth

Cons
Over-dependence on the local licensees
Limited royalty fee
Possible damage of image
Potential competitors

Local Manufacturing

Reasons:
Local costs
Market size
Tariffs
Political considerations

Contract manufacturing: order receiving and production (small market size and high tariff)

Assembly: consists only of the last stages of manufacturing and depends on the ready supply of parts

Full-scale integrated production: take advantage of lower costs

Ownership Strategies

Joint Venture

Pros:
Share risks
Bring in local knowledge
Share resources

Strategic Alliances

An alliance involving two or more firms in which each partner brings a particular skill or resource
Technology-based Alliances
Production-based Alliances
Distribution-based Alliances

Market Entry through M&A

Why:
Quick
Immediate market presence
Only entry method available

Copyright 2008, by the Contributing Authors. Cite/attribute Resource. factadmin. (2008, June 23). Global Market Entry Strategy. Retrieved November 24, 2009, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/business-administration-1/global-marketing-strategy/BA4590/global-market-entry-strategy. This work is licensed under a Creative Commons License.

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Global Market Entry Strategy

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	Info Global Market Entry Strategy Document Actions Course Content for BA4590 Outline: Market entry options Ownership Strategies Market Exit Strategies How internet has affected the international entry strategies Exporting as An Entry Strategy Indirect Exporting: Export through a domestic intermediary EMC: export management company Export Agents Direct Exporting: Export through an intermediary located in a foreign country Independent distributor vs. marketing subsidiary Cost/market size control Specialized skills/service Government regulation Licensing as An Entry Strategy Key elements: Licensor and licensee Right to copyright or patent and/or trademark Royalty Infopro of Taiwan specializes in publishing chinese-language editions of American publications under licenses Pros: No extra resources Additional income Market too small to justify presence Minimum risks Foster fast growth Cons Over-dependence on the local licensees Limited royalty fee Possible damage of image Potential competitors Local Manufacturing Reasons: Local costs Market size Tariffs Political considerations Contract manufacturing: order receiving and production (small market size and high tariff) Assembly: consists only of the last stages of manufacturing and depends on the ready supply of parts Full-scale integrated production: take advantage of lower costs Ownership Strategies Joint Venture Pros: Share risks Bring in local knowledge Share resources Strategic Alliances An alliance involving two or more firms in which each partner brings a particular skill or resource Technology-based Alliances Production-based Alliances Distribution-based Alliances Market Entry through M&A Why: Quick Immediate market presence Only entry method available Copyright 2008, by the Contributing Authors. Cite/attribute Resource. factadmin. (2008, June 23). Global Market Entry Strategy. Retrieved November 24, 2009, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/business-administration-1/global-marketing-strategy/BA4590/global-market-entry-strategy. This work is licensed under a Creative Commons License.