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Methods Of Entering Foreign

Market
Important Entering Strategies
 Licensing/Franchising
 Exporting
 Contract Manufacturing
 Management Contract
 Mergers & Acquisitions
 Third Country Location
 Assembly Operations
 Strategic Alliance
 Manufacturing Facility
 Joint Ventures
 Counter Trade
Licensing And Franchising
 No Capital Required
 Avoiding Government

 Market Testing

 Avoid Competition

 Return on Obsolete product

 Tested Success
Exporting
 Low Volume
 High Cost Of Production

 Poor Infrastructure

 Government Regulation

 No Permanent Interest
Contract Manufacturing
 Low Commitment
 Give Freedom To Quit Any Time

 Immediate Return

 Government Support
Management Contract
 Sale of products
 Commercializing Know How

 Difficulty in adaptation
Turnkey Projects
Third Country Location
M&A
Strategic Alliance
Fully Owned Manufacturing
Trade Barriers
To get complete control

Avoiding Potential Competitors


Assembly Operations
Import Duty Structure
Government Support

Less Risk
Joint Ventures
Dealing With Government
Public Support

Managing Cultural Bridge

Sharing Risk
Counter Trade
Types Reasons
 Barter  Central Planning

 Buy back  Forex Problem

 Compensation Deal  Obsolete Products

 Counter Purchase  Market Testing

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