Passage STRATEGIES

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Contender Analysis. Qualities and weaknessesBrand acknowledgment/reputationDistribution channels and relationshipsKnowledge of household marketGovernment ProtectionWeaknesses as a matter of fact of protectionSignaling. Nation Evaluation. Nation identificationPreliminary screening. In-Depth ScreeningMarket sizeGrowth rateCompetitive intensityTrade barriersFinal determination.

Presentation Transcript

Slide 1

Passage STRATEGIES Additional exploration issues Methods of section Advantages Disadvantages

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Competitor Analysis Strengths and shortcomings Brand acknowledgment/notoriety Distribution channels and connections Knowledge of household market Government Protection Weaknesses for a fact of assurance Signaling

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Country recognizable proof Preliminary screening In-Depth Screening Market measure Growth rate Competitive force Trade boundaries Final choice Country Evaluation

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Forecasting Basic—share of general market Build-up—share inside fragments Analogy to practically identical nation ahead in the item life cycle Subjective techniques (e.g., jury, send out pooling, Delphi) Time arrangement and relapse (require dependable information!)

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Competitors and Predicted Market Share Identification Foreign versus residential Existing versus potential Direct versus backhanded Likely development of contenders

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The Reality Exportation and Entry EXPORT MANAGEMENT COMPANY HOME COUNTRY OPERATIONS IMPORTS EXPORTS LOCAL PARTNERS LOCAL MANUFACTURING LOCAL MARKETING LOCAL ASSEMBLY LOCAL BUYER HOST COUNTRY CUSTOMERS

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Entry Strategies FOREIGN MARKET ENTRY MANUFACTURING AT HOME MANUFACTURING ABROAD INVESTMENT ENTRY CONTRACTUAL OVERSEAS ASSEMBLY/MIXING EXPORTING ACQUISITION/SELF-BUILT OTHER DIRECT ENTRY LICENSING/FRANCHISING CONTRACT MANUF. Coordinate INDIRECT TURNKEY PROJECTS MGT CONTRACTS "PIGGY-BACKING" JOINT VENTURES

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Direct Sales to remote Distributors Retailers End clients Large Small (e.g., through eBay) Indirect Sales to fare organization which handles deals to outside purchasers or wholesalers "Piggy-sponsorship" (Complementary Exporting) Two firms trade sending out administrations by dispersing the other's item abroad Exporting

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Advantages: Limited speculation; generally safe Disadvantages: Higher unit cost to shopper Likely lower piece of the pie Limited learning on nation advertise attributes Possible seizure by contenders Exporting

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Transportation Negotiation Coordination amongst modes and shippers Export licenses and authorizations Customs clearing Warehousing Financing Quotes Point of exchange (FOB) Credit Risk evaluation/letters of credit Exchange rate chance Repatriation/counter-exchange Export Tasks

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Export Problems Price heightening Dumping controls Finding nearby appropriation Screening Negotiation After deals bolster Imitation by merchant/inability to learn neighborhood showcase

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Foreign Entry Sequences Indirect sending out and permitting Direct sending out by means of free merchant Foreign deals auxiliary Local get together Local assembling

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Entry Barriers Cost of section Tariff versus non-levy Government controls Market structure Distribution Established brands

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Advantages Low speculation Limited direct presentation Lower leave costs Rapid passage Possible diminishment in forging Disadvantages Limited control (contract = enforceability!) Quality Promotion Image Difficulty in ending relationship Licensing and Franchising

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Overseas Turnkey Projects Firm consents to set up development or potentially producing venture—guaranteed to be in operation frame when finished Helps use venture made at home if coordinate rivalry in the new market is far-fetched Some hazard in having the capacity to "convey" Maneuvering nearby government directions and neighborhood framework

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Advantages Faster begin Reduced interest in assembling Ability to exploit built up maker's involvement and cost structure (encounter bend) Disadvantages "Preparing" of contender Still left with showcasing obligations  require nation nearness Contract Manufacturing

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Management Contracts Opportunity for firm to benefit on its innovation and "know-how" in a market where the firm does not have any desire to enter or confront rivalry from contractee Minimal exchange of advantages Must have the capacity to work in nearby foundation, yet contractee as well as government as a rule has a solid enthusiasm for the accomplishment of the venture

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Advantages Control Learning about nation advertise Leverage (might be drawback, however) Disadvantages Large venture; chance Risk of nationalization/blackmail May take more time to be fruitful Direct Entry- - acquisitions or "working sans preparation"

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Foreign Assembly/Mixing Motivations Lower work nearby work costs Ease of delivery Local substance prerequisite Duties/levies Locus of significant worth expansion for expense purposes

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Strategic Alliances Distribution Manufacturing Research and advancement Joint endeavors

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