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

GLOBAL MARKET ENTRY
STRATEGIES
Chapter Nine

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Global Market Entry Strategies
Chapter Nine
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Overview

1. Target Market Selection
2. Choosing the Mode of Entry
3. Exporting
4. Licensing
5. Franchising
6. Contract Manufacturing
7. Wholly Owned Subsidiaries
8. Cross-Border Strategic Alliances
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Overview

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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
in Asia Pacific

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2. Choosing the Mode of Entry
• Decision Criteria for Mode of Entry
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Market Size and Growth

Risk
Government Regulations
Competitive Environment
Local Infrastructure
Exhibit 9-4 Entry Modes and Market
Development
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2. Choosing the Mode of Entry (cont)
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Company Objectives
Need for Control
Internal Resources, Assets, and Capabilities

Flexibility
Mode of Entry Choice : A Transaction Cost
Explanation
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3. Exporting
• Indirect Exporting
• Cooperative Exporting
• Direct Exporting

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4. Licensing
• Benefits
• Caveats

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5. Franchising
• Benefits
• Caveats

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6. Contract Manufacturing

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7. Joint Ventures
• Benefits

• Caveats
– Exhibit 9-5 Conflicting Objectives in Chinese
Joint Ventures

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7. Joint Ventures (cont)
• Drivers Behind Successful International
Joint Ventures
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Pick the Right Partner
Establish Clear Objectives from the Beginning
Bridge Cultural gaps

Top Managerial Commitment and Respect
Incremental Approach Works Best
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8. Wholly Owned Subsidiaries
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Benefits
Caveats
Acquisitions (and Mergers)
Greenfield Operations

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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
– Defense, Catch-up, Remain, Restructure
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9. Cross-Border Strategic Alliances
(cont)
• Cross-Border Alliances that Succeed
– Alliances between strong and weak partners
seldom work.

– Autonomy and flexibility
– Equal ownership

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