Global Market Entry Strategies

1
Global Market Entry Strategies

• Domestic Production
• International Production
• Licensing
• Franchising
• Contract Manufacturing
• Management Contracting
• Foreign Investment
• Joint Venture
• Wholly Owned Subsidiary

2
Global Market Entry Strategies (cont.)

• Global Strategic Partnership
• Characteristics
• Partners Remain Independent
• Partners Share Benefits Control
• Partners Make Ongoing Contributions
• Success Factors
• Mission Win-Win
• Strategy Avoid Conflicts
• Governance Union of Equals
• Culture - Shared Set of Values
• Organizational Structure
• Management Decision Making

3
Cooperative Strategies in Japan S. Korea

• Keiretsu
• Vertical
• Manufacturing
• Financial
• Chaebol
• Market Expansion Strategies

MARKET
Concentration
Diversification
Concentration
COUNTRY
Diversification
4
Global Competition Has Resulted in

• Shorter Product Life Cycle
• Higher Quality
• Competitive Price
• Innovative Products

5
Global Strategic Alliances Success Factors

• Win-Win Situation
• Avoid Conflicts
• Equal Partnerships
• Equal Contributions from Partners
• Similar Organizational Cultures
• Compatible Organizational Structure
• Compatible Decision making Structure
• Clear Lines of Demarcation
• Long Enough Relationship

6
Reasons for Strategic Alliances

• Compensate for Weaknesses
• Increase Competitive Strengths
• Rapid Expansion into New Markets
• Access to Technology
• Lower Marketing Production Costs
• A Source of Capital
• Fill-out Product Lines
• Shorter Lengths of Product Life Cycles