Explore BrainMass

Explore BrainMass

    Entry into International Markets

    Multinational companies look for opportunities for growth in new, foreign markets world-wide. These markets are potential targets for new sales for a company's products and services. Companies can target both developed markets and emerging markets. Entry into international markets is contrasted with off-shoring, where companies look to move production or support processes to foreign economies.

    Modes of entry are classified based on two broad categories: equity and non-equity modes. Modes of entry into foreign markets differ on three dimensions: the amount of risk present, the amount of control and commitment of the company's resources it requires, and the return on investment they promise to the multinational company.

    Exporting: Exporting can either involve direct exports, which is the most basic mode of entry into a foreign market. It may also involve indirect exports, a process in which the exporting company loses control of the sale of its goods and services in the foreign markets to a trading or merchant company.

    Licensing: A licensing agreement allows foreign firms to manufacture a proprietor's product under copyright or patent, by paying the proprietor a licensing fee. The main advantage of this strategy is that it allows proprietors to penetrate foreign markets without assuming costs or risk. A disadvantage may be a lack of control over quality, and loss of secrecy of production processes and technology.

    Franchising: Franchising is a mode of entry similar to licensing where the franchiser agrees to transfer a package of products, systems and services that it had developed to a franchisee for a fee. The franchisee then finances the business and brings local market knowledge and entrepreneurship.

    Wholly owned subsidiaries: Wholly owned subsidiaries can either be greenfield projects or acquisitions. Greenfield projects imply investing in an entirely new project in a foreign country. This is a costly option, but allows the company to design exactly the business processes it needs without trade-offs from existing processes. An acquisition involves purchasing an existing business, or resources. Acquisitions are usually then integrated with the parent company in order to find synergies and cost savings or may be completely restructured to provide the parent company's products or services.

    Strategic alliance: A strategic alliance is a type of cooperative agreement between firms. These firms may agree to share resources (such as distribution channels). Strategic alliances are becoming increasingly popular, and they are often focused on creating new products and services rather than helping each other support existing businesses.

    Joint venture: A joint venture is a type of strategic alliance where both firms commit resources to a new and separate undertaking. Joint ventures allow the firms to share risks, technology and other resources (such as knowledge) in order to pursue new opportunities. Joint ventures often fail when the two parent companies have conflict over the direction of the joint venture, the use of resources, and frustrations that arise from not having direct, hierarchal control over such an undertaking.


    © BrainMass Inc. brainmass.com May 25, 2024, 6:56 pm ad1c9bdddf

    BrainMass Solutions Available for Instant Download

    Marketing Strategy: Global, Multi-domestic, or Transnational

    Look at two completely different companies that sell completely different types of products. However, both companies have strong international potential. The first business you will look at is Yogurtland, a California-based frozen yogurt franchise with 300 locations. Most of the company's locations are in the United States a

    crosscultural merger

    Assume that you are the CEO of a multi-national company. What is the first thing you consider when selecting a model to use in an upcoming cross-cultural merger, joint venture, or acquisition? Why? How will this consideration assist you in selecting the best model for the situation? 250 words

    Walter Meier JET International Expansion

    Case Study: Walter Meier JET intnl Expansion 1. Is Brazil the right market for JET expansion? 2. Develop a forecast of how Brazilian business might evolve over the first five years of entry into Brazil. 3. Discuss and evaluate JET entry mode into Brazil. 4. What other factors and issues should Walter Meier consider when sele

    Pricing Strategy Examples

    Pricing: What is the pricing strategy (not necessarily the price; but the pricing strategy), low price leader, high priced luxury leader, or value pricing? How will the pricing strategy support market entry and competitive positioning?

    Using Social Media to Enter China as a New Market

    Sample question: Describe how a company will utilize the internet, telecommunications, and social media (Facebook, Twitter, etc), to both facilitate its entry and build its business in a country, for example, a new market entry into China Please help answering this question with regards to using the internet and social media

    WholeFoods Market in China

    Sample question: Identify the legal structure of the business, 2 potential market entry strategy for China for a grocery store, example WholeFoods, its legal structure, joint venture, distributorship, contact, franchise, license, direct export, sales agent, or location entry.

    BRICS Countries: Supermarkets

    Hi I need help with this question, thanks Why does BRICS Countries, Brazil, Russia, India, China and South Africa are the emerging global economic powers for the expansion of supermarkets?

    International strategy management of Chevron Corporation (CVX)

    A world market has emerged from what was previously national markets, and the climate for international business today is more favorable than in the past. International strategies increase a company's strategic competitiveness as it strives to compete in the global marketplace. Select ON

    Nokia - Political Risks and Resolutions of Doing Business in China

    Visit its website at www.nokia.com and focus your attention on what this well-known MNC is now doing in Asia. 1. What political risks does Nokia face in Asia, particularly China? 2. How can Nokia manage these risks? 3. How can effective international negotiating skills be of value to the firm in reducing its politica

    Out-Licensing Proposal

    Analyzing the Market/Regulation(Tax) in Brazil, write an out-licensing proposal for Citofem Liquid cytology medical device for the Brazilian market. Website: www.bioTD.net

    Doing Business in Australia - Sunglasses

    My company "iShadz" sells designer sunglasses at a discounted price. I currently have a store front in California and a website where I sell the glasses. I want to expand the business globally and need to look at how each of the following variables will affect my business both positively and negatively. The country I am expan

    International Businesses: International Sport Marketing

    Read: International Sport Marketing: Branding and Promoting the 2006 Olympic Winter Games - Elizabeth L. 1) Identify key concepts (of Global marketing, such as Four Ps, Entry, Time to Entry), write a list, and study them 2) Read the case in-depth and conduct additional research, if necessary 3) Apply concepts of global mar

    Entry Strategy for Home Depot: Risks. Opportunities, and Threats

    Assess the risks. opportunities, and threats, in terms of political, legal, and economic efforts within the context of Home Depot of entering into the UK market. Please use APA style and use and cite references. This is an International management class and the focus on the question is part of an entry strategy for Home Depot.

    The International Chocolate Market

    Jack Carlson started the Sugar Daddy Chocolate Company five years ago and is now selling about $1 million annually. Carlson would like to expand sales, but the U.S. market is very competitive. He has a friend with a small business who is not making 20 percent of his sales overseas. He wonders if any chocolates are exported. To f

    International Negotiations

    I am not looking for a paper, but assistance developing three to four explicit paragraphs for the following questions as they relate to negotiations in international business. Although both international and domestic negotiations should try to achieve a "win-win" situation, there are some differences between the two. I am having

    Compare and Contrast Approaches to International Market Entry

    There are three major strategic approaches to expanding an organizations business into an international market; they are management contracting, exporting, and joint venturing. - Define these strategies. - Compare and contrast them. If you owned a solar panel business located in the United States and you wanted to expand

    Foreign Markets and Technology in Marketing

    1) What are some factors companies need to consider before attempting to enter foreign markets? How can international marketing benefit domestic countries? 2) How has technology affected marketing? What types of new technologies are organizations using to market their products and services to both buyers and sellers?

    Namibian/South African Firm's Exportation Issues

    Select three namibian or south african firms manufacturing different products and perform the following: - Give a brief background of each firm. - Given that company A exports to Saudi Arabia, company B to Germany and company C to China, recommend a foreign entry strategy for each company. - Demonstrate how each product wou

    Perception of global business activities

    Discuss how your perception of global business activity has been affected by this course and two concepts or ideas discussed in this course that contributed to these affects on your perception. Be sure to explain what each of these concepts is and how each has affected your perception. The course is international business "Th

    Market Entry Strategy

    I need some assistance with answering the questions below: Describe the continuum of evaluation for a market entry strategy. Identify the areas of analysis, evaluation tools and post decision strategies. Include a short explanation of how each contributes to the overall evaluation of a market strategy.

    International Business Market

    For this project, you will research the international business activities conducted in one specific emerging market by a well-known multinational company or a multinational organisation you know well. Multinational enterprises are often present in many international markets, so you should limit yourself to looking at the organis

    Black & Decker Case Study

    Read the case study on Black & Decker International. Address the three questions that follow the case study.

    Cross Cultural Analysis

    Identify a cross cultural analysis. How might an organization use a cross cultural analysis to influence the consumer behavior within a cultural not its own? Include References please Please include: 1. Defined cross-cultural analysis. 2. Described the purpose and value of cross-cultural analysis. 3. Analyzed how an orga

    strategic partnerships to help international expansion

    A leading hospitality, real-estate development, and lifestyle company recently announced its plan to expand internationally through the use of strategic partnerships, and specified a new partnership with another company. Research this Web site, and provide a response to the following: ?Discuss how the strategic partnerships t

    Global Feasibility Analysis for Company Considering Market Entry

    The final project will be to develop a Global Feasibility Analysis for a company that is considering market entry into a selected country with a particular product or service. The focus is a preliminary analysis to be presented to the executive team with recommendations for a go/no go decision. Focus of the Final Project

    Expatriates and Different Approaches to International Staffing

    India and the United Kingdom Please provide a list of advantages and disadvantages of hiring expatriate employees from outside your firm rather than transferring existing employees to expatriate positions. Cultural training for expatriates List as many different approaches to international staffing that you know. Provid