Market entry strategies
7 important questions on Market entry strategies
What are the criteria to select an succesfull markent entry method?
- Knowing the company's objectives and expectations
- know the size and the financial resources of the company
- what are the skills, abilities and attitudes.
What are the fundamental questions to decide on level risk and control?
- What level of control over our internet do we requirer?
- What level of risk are we willing to take
- what costs are we willing to make
What is indirect exporting?
- Domestic purchasing -> produce available for export but does nothing to international marketing
- Export management company (EMC)/Export house (EH)
-> intermediary who helped by exporting
-> package deal
-> spreading costs - Piggybacking -> using another distribution network
- Trading companies -> colonial
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What is direct exporting?
- Agents -> independent individuals/firms -> obtain orders for commission
- Distributors -> buy and stock products and sell it
- management contracts ->
- franchising
- direct marketing -> mailing, phoning
What are the foreign manufacturing without direct invest?
- Contract manufacturing -> other producers so focus on marketing and sales. Nike in lage loonlanden
- licensing
What are the foreign manufacturing with direct invest?
- Assembly -> reducing tariff barriers
- wholly owned subsidiaries -> parent company have the greatest amount of control (also the risks an costs)
- company acquisitions and mergers -> acquiring an existing company in the market
What are the corporate strategies?
- Joint ventures -> two are beter than one
- statistic alliances -> not 100% together -> sharing distribution channel
- Minority stake holdings -> an equity stake in another company
The question on the page originate from the summary of the following study material:
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