GMMCH09.ppt 51KB Jun 05 2011 09:30:25 PM

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John Wiley & Sons, I nc c 1998

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GLOBAL MARKET ENTRY

STRATEGIES

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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

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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}

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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}

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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}

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3. Exporting

• _{Indirect Exporting}

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4. Licensing

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5. Franchising

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7. Joint Ventures

• _Benefits • _Caveats

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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

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8. Wholly Owned Subsidiaries

• _Benefits • _Caveats

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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

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9. Cross-Border Strategic Alliances

(cont)

• _{Cross-Border Alliances that Succeed}

– _{Alliances between strong and weak partners}

seldom work.