Global Market Entry Strategies Chapter 9

_______________________, attitude toward ____________, The particular market entry strategy company executives choose will depend on their: _______________________, attitude toward ____________, how much ____________________ is available, and how much __________ is sought.

Global Market Entry Modes ______________ high ______________ _________/ Commitment/ _________ ________________ ________________ low _________________

Exporting _________ toward “going global” Entails ________________ risk Represents, in essence, the transfer of __________ to a target market. Most appropriate for a company with ________________________ in international markets.

Licensing A market entry strategy whereby one company permits a foreign company to make use of its ______, __________, technology, company ________ or other intangible assets in return for a royalty. It represents, in essence the transfer of ___________ to a target market.

Licensing Advisable when targeting a country with a ________ degree of political ________________ and the company is hoping to limit the risk of ______________. i.e., Trademarked name & menu items of: ____________________

Licensing: the arrangement by which the _____________ brand name appears on:

Special Licensing Arrangements _________________ Licensing: a contractual agreement whereby two companies agree to share __________ developments: Apple & __________. _________ Manufacturing: requires a global company to provide __________ specifications to a subcontractor or local manufacturer. i.e., ________________

Advantages of Licensing It requires _______________ & thus need not deter even small companies. The firm immediately gains local __________________________. Advantages of foreign production apply: savings in __________ & _________________ costs and local production where national suppliers are favored

Disadvantages of Licensing The licensee may become a _________________________. Limited return: _____% - _____% ________________ the licensee: misunderstandings & conflicts: _______________ control Management ________________

Joint Venture A market entry mode that traditionally has been used by companies that, for one reason or another, __________________________ to manufacture products for sales in the partner’s home country market. i.e., the _____________ gov. allows foreign companies to participate in its markets only if the companies establish operations with local enterprises.

Two companies ___________ has established joint ventures with in: _______________ ________________ _________

_________________________ currently owns a ______% stake in __________ the Czech automaker.

Advantages of Joint Ventures Potentially greater returns than _________________________. Greater control over ___________ & ____________________. Better marketing _____________. More experience in _________________ marketing

Joint Venture: Disadvantages A company incurs significant cost associated with ___________ and _____________________ issues. The potential _______________ between partners.

3. The partner can evolve into a strong _______________________________. 1978 1995

Acquisition _______________________________ of a foreign company or of overseas manufacturing or marketing facilities. Why?: they avoid the ____________________ problems & __________________ of interest that can arise with joint venture. Or: a company ___________________ any suitable local partners.

Global Strategic __________ (GSA): Characteristics (7) 1. The goal is world _____________ 2. The vision is _________________ 3. Technology transfer is __________ 4. Partners compete in markets _______________________ to the GSP (Global Strategic Partnership)

5. Participants share ___________ as well as _____________. 6. Participants maintain ___________ outside the framework of alliance. 7. Participants make _____________ contributions in _______________, _______________, and other areas.

Factors of Success of GSPs (Global Strategic Partners): 6 1. ________________________: A ______________ situation, where participants pursue objectives on the basis of mutual advantage. 2. ______________________: ______, with all partners involved.

3. ________________________: Discussion & consensus must be the _____________. Partners must be viewed as _______________. 4. ________________________: _________ chemistry is important, as is the successful development of a shared set of _____________.

5. __________________________: _________________ structures and designs. 6. ________________________: ________________ issues must be identified in advance and clear, ________________ lines of authority must be established.

Market ______________ Strategies Companies must decide whether to expand by seeking _____ markets in _____________ countries or alternatively, seeking _________ country markets for already identified and ___________ market segments

Market Expansion Strategies Market/Segment Concentration Diversification Country ____________ _____________ 2) _____________ _______________ Concentration 3) _____________ _______________ 4) _____________ _______________ Diversification

Market Expansion Strategies Strategy 1: it _________________ on a few markets/segments in a _______________ countries. i.e., ________ markets 2 luxury car models, 30% of __________ sales come from the USA, with most of the rest from Western Europe.

Strategy 2: country ____________ & ____________ diversification: a company serves ___________ markets in a ________ countries. i.e., according to the U.S. Dept. of Commerce, more that _____% of U.S. companies that export limit sales to _________ countries.

Strategy 3: ________________ diversification and market _____________ concentration: The __________ global strategy whereby a company seeks out the ___________ market for a _____________ or __________ ____________________.

______________________ Strategy 4: ________ & __________ diversification. The corporate strategy of a __________, ______________________ company. ______________________ Located in _____ countries: Leading edge solutions in Information & Communications, Automation & Control, __________, _________________, Medical, Lighting, Real Estate, & __________________