globalmarket strategy

Topics: Strategy, Strategic management, Business Pages: 2 (592 words) Published: September 23, 2014
CHAPTER 9 Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Introduction
Trade barriers are falling around the world
Companies need to have a strategy to enter world markets

Licensing
is a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for royalties, license fees, or some form of compensation. Advantages to Licensing

1. Licensee is typically a local business that will produce and market the goods on a local or regional basis, tariffs, quotas or expert barriers. 2. Licensees are granted considerable autonomy and are free to adapt the licensed goods to local tastes.

Disadvantages to Licensing
Limited participation
Returns may be lost
Lack of control
Licensee may become competitor
Licensee may exploit company resources

Special Licensing Arrangements
Contract manufacturing

Franchising
is another variation of licensing strategy. Also, business strategy for getting and keeping customers. It is a method for distributing products and services that satisfy the customer needs. Investment

The action of process of investing money for profit or material result. Joint Ventures
is an entry strategy for a single target country in which the partners share ownership of a newly created business entity. Investment via Ownership or Equity Stake
Start-up of new operations
Greenfield operations or
Greenfield investment
Merger with an existing enterprise
Acquisition of an existing enterprise
Global Strategic Partnerships
Possible terms:
Collaborative agreements
Strategic alliances
Strategic international alliances
Global strategic partnerships

The Nature of Global Strategic Partnerships

Participants remain independent following formation of the alliance Participants share benefits of alliance as well as control over performance of assigned tasks Participants make ongoing contributions in technology, products, and other key strategic areas 5...
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