1. GLOBAL MARKET ENTRY STRATEGIES Chapter Nine
John Wiley & Sons, Inc c 1998

2. Global Market Entry Strategies Chapter Nine
Overview
1. Target Market Selection
2. Choosing the Mode of Entry
3. Exporting
4. Licensing
5. Franchising
6. Contract Manufacturing
7. Wholly Owned Subsidiaries
8. Cross-Border Strategic Alliances
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3. Overview
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4. 1. Target Market Selection
Exhibit 9-1 A Logical Flow Model of the Entry Decision Process
Exhibit 9-2 Method for Pre-Screening Market Opportunities: Example
Exhibit 9-3 Opportunity Matrix for Henkel in Asia Pacific
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5. 2. Choosing the Mode of Entry
Decision Criteria for Mode of Entry
Market Size and Growth
Risk
Government Regulations
Competitive Environment
Local Infrastructure
Exhibit 9-4 Entry Modes and Market Development
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6. 2. Choosing the Mode of Entry (cont)
Company Objectives
Need for Control
Internal Resources, Assets, and Capabilities
Flexibility
Mode of Entry Choice : A Transaction Cost Explanation
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7. 3. Exporting Indirect Exporting Cooperative Exporting Direct Exporting
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8. 4. Licensing
Benefits
Caveats
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9. 5. Franchising
Benefits
Caveats
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10. 6. Contract Manufacturing
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11. 7. Joint Ventures Benefits Caveats
Exhibit 9-5 Conflicting Objectives in Chinese Joint Ventures
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12. 7. Joint Ventures (cont)
Drivers Behind Successful International Joint Ventures
Pick the Right Partner
Establish Clear Objectives from the Beginning
Bridge Cultural gaps
Top Managerial Commitment and Respect
Incremental Approach Works Best
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13. 8. Wholly Owned Subsidiaries
Benefits
Caveats
Acquisitions (and Mergers)
Greenfield Operations
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14. 9. Cross-Border Strategic Alliances
Types of Strategic Alliances
Exhibit 9-6 RISC Alliance Groups, Early 1992
Exhibit 9-7 Cross-Border Technology-Based Strategic Alliances
The Logic Behind Strategic Alliances
Exhibit 9-8 Generic Motives for Strategic Alliances
Defense, Catch-up, Remain, Restructure
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15. 9. Cross-Border Strategic Alliances (cont)
Cross-Border Alliances that Succeed
Alliances between strong and weak partners seldom work.
Autonomy and flexibility
Equal ownership
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