What are the major ways of entering a foreign market
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Transcript of What are the major ways of entering a foreign market
What are the major
Ways of entering
A foreign market ?
By Mausumi Mohanta
Company decides
To go
Global
The various ways
to enter
the global market arena
Indirect Export
Indirect Export
– through intermediate intermediaries
• Domestic-based export merchants
• Domestic-based export agents
• Cooperative organizations
• Export management companies
Indirect Export
Has Two Advantages :
• Less investment
- no export Dept.
- no overseas sales force
• Less risk
-International intermediaries handle
the know-how and services
Direct Export
Direct Export
– Handle own exports
• Domestic-based export division
• Overseas sales subsidiary
• Travelling export sales experts
• Foreign based distributers
Licensing
What is Licensing ?
Licensor issues a license to a foreign
company to use a manufacturing
process, patent, trademark, trade
secret for a fee or royalty.
Joint Ventures
Joint ventures
Foreign investors join local investors
in a joint venture company in which
they share ownership and control
Direct Investment
Large market – distinct advantages
Direct Investment
• Secures cost economies
• Strengthens image in foreign country
• Deepens its relationship with local
stakeholders
• Retains full control over its investment
• Assures itself of access to the market