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Starting International Operations: Keith Ann M. Buduan

The document discusses various strategies for international market entry, including exporting, licensing, franchising, joint ventures, wholly owned subsidiaries, and management contracting. It provides details on direct exporting vs indirect exporting and direct importing vs indirect importing. The advantages and disadvantages of different entry methods like exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are also outlined. Key decisions for international market entry involve selecting a target market, determining entry timing, and choosing an appropriate scale of entry.

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66 views20 pages

Starting International Operations: Keith Ann M. Buduan

The document discusses various strategies for international market entry, including exporting, licensing, franchising, joint ventures, wholly owned subsidiaries, and management contracting. It provides details on direct exporting vs indirect exporting and direct importing vs indirect importing. The advantages and disadvantages of different entry methods like exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are also outlined. Key decisions for international market entry involve selecting a target market, determining entry timing, and choosing an appropriate scale of entry.

Uploaded by

Scribd User
Copyright
© © All Rights Reserved
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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Starting

International
Operations
Keith Ann M. Buduan
Fundamentals of legal entries
BASIC ENTRY DECISIONS

WHICH MARKET?

WHEN TO ENTER?

WHAT SCALE?
MARKET
TIMING

.
SCALE
International Market Entry Strategies

EXPORTING MANAGEMENT LICENSING


CONTRACTING
Sale of products and services in Selling the right to use some
foreign countries that are Situation in which company intangible property for a fee
sourced from the home country. sells only its management or royalty.
skills
International Market Entry Strategies

WHOLLY OWNED SUBSIDIARY

JOINT VENTURE

FRANCHISING

LICENSING

MANAGEMENT CONTRACTING

DIRECT EXPORTING

EXPORTING
Methods of
Exporting/Importing
DIRECT EXPORTING INDIRECT EXPORTING
Export is undertaken Manufacturer does not
directly by the directly export to
manufacturer foreign buyers

DIRECT IMPORT INDIRECT IMPORT


Company buys Company buys from a
products directly from a manufacturer or
manufacturer or supplier in another
supplier in another country using an
country intermediary
METHODS OF EXPORTING
DIRECT EXPORTING
ADVANTAGES DISADVANTAGES
 Goodwill  High Degree of Risk
 Optimum Production Capacity  More Investment
 Spreading of risks  Lacks Specialization
 Export Obligation  High Overhead
 Direct Control  Unsuitable to small firms
 Export Incentives
 First Hand Information
 Higher Prices
INDIRECT EXPORTING
ADVANTAGES
DISADVANTAGES
 Less Risk
 Less Investment
 Lower Price
 Specialization
 No Export Incentives
 Suitable for small firms
 Second Hand Information
 Availability of improved inputs
 Lack of Control
 Technical Guidance
 After-Sale-Service
International Market Entry Strategies

FRANCHISING JOINT VENTURES WHOLLY OWNED


SUBSIDIARY
Selling the right to use a An agreement between two Company whose stocks is
company name or business or more companies from owned by a parent company
process in a specific way different countries to share or holding company
business project
TYPES OF ENTRY ADVANTAGE DISADVANTAGE

Fast Entry, Low Cost Tariff barriers, high transport cost


EXPORTING

Fast Entry, Low Risk, Low Cost Less control, licensee may become a
LICENSING AND competitor, legal and regulatory
FRANCHISING environment
(IP and contract law)

Partner Knowledge, Shared Cost Conflicts, Shared Control


JOINT VENTURE

Maximum Control, High Cost, High Risk, Slow entry due to set
WHOLLY OWNED up time
SUBSIDIARY
ADD AN
PHOTO
PAGE

Presentations are
communication tools that can
be used as demonstrations,
lectures, speeches, reports,
and more. It is mostly
presented before an audience.
SOURCES

SlidesCarnival for the presentation template


Pexels for the photos

HAPPY DESIGNING!

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