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Market+Entry+Strategies 2

The document discusses various modes of international business expansion including trade related exports, contractual arrangements like licensing and franchising, and direct investment options like wholly owned subsidiaries and joint ventures. It also examines strategic trade-offs companies must consider when choosing an expansion mode like level of commitment, risk, control, flexibility, and returns. Finally, it addresses factors like timing of market entry and segmenting opportunities based on competitive risks and product type.

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Surbhi Jain
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79 views5 pages

Market+Entry+Strategies 2

The document discusses various modes of international business expansion including trade related exports, contractual arrangements like licensing and franchising, and direct investment options like wholly owned subsidiaries and joint ventures. It also examines strategic trade-offs companies must consider when choosing an expansion mode like level of commitment, risk, control, flexibility, and returns. Finally, it addresses factors like timing of market entry and segmenting opportunities based on competitive risks and product type.

Uploaded by

Surbhi Jain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Modes of Entry

Trade Related Exports Piggy backing Countertrade E-channels Licensing Franchising Contract Manufacturing Management Contracts Turnkey Projects Strategic Alliances Overseas Assembly Joint Ventures Wholly Owned Subsidiaries

Contractual

Investment

Strategic Trade-offs in Selecting International Business Expansion Modes


A firm has to choose from a variety of expansion modes depending upon:
Ability & willingness to commit resources in the target country Magnitude of risk the firm is willing to take in its international expansion Types of return anticipated from overseas operations Extent of control to be exerted in the firms foreign operations Level of externalization of the firms resources including its intellectual property Desired flexibility of expansion modes

Strategic Trade-offs in Selecting International Business Expansion Modes


Level of Internalization

Low
High
Investment

High
Low

Control and Risk

Flexibility

Contractual

Low

Trade Related

High

Low
Resource Commitment & Returns

High

Timing of Entry
First mover advantage or disadvantage

Segmentation on the Basis of International Marketing Opportunities


MARKET SEGMENT
EXISTING LATENT INCEPIENT
LOW

PRODUCT TYPE

COMPETITIVE Cost & Risk of product launch

IMPROVED

BREAKTHROUGH
HIGH LOW HIGH

Cost & Risk

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