Global Market Entry Strategies

1
Global Market Entry Strategies
--------------------- Considerations corporate
vision, attitude towards risk, availability of
investment capital and how much control is
sought.
2
Licensing

• Disadvantages
• Lack of control,
• Skill and technical acquisition by Licensee,
• Leverage of other company resources.

• Special Agreements
• Contract manufacturing
• Specialization of function
• Quick entry
• Franchising
• Western-style marketing appeal

---------- Encourage cross-technology exchanges!
3
Investment

• Foreign Direct Investment
• Minority/Majority/Acquisition options
• Joint Venture (description features)
• Single country entry strategy
• Risk sharing
• Delivers market exposure
• Provides synergistic results
• Overcomes government restrictions

4
Investment

• Joint Venture (Disadvantages)
• Significant costs, control/coordination issues
• Conflict potential
• Development of market leaders

----------- Learn from the partner
5
Investment Via Ownership or Equity Stake

• Mergers and Acquisitions
• Extensive participation
• Represents majority of FDI
• Strategic evolution (e.g., licensing)?
• Response to governmental realities
• Experience transfers
• Integration challenges

• Entry Strategy Preferences
• Over time
• Within industry variance

6
Global Strategic Partnerships

• GSPs Background
• Impact of global environmental changes
• Shift from core competence to environmental
  response
• Features
• Independence
• Sharing of control/benefits of assigned tasks
• Ongoing strategic contributions
• Quick means to global strategy
• Competitor development and management challenges

7
Global Strategic Partnerships

• Advantages
• Serves as product cost deterrent
• Supplements technology, capital or know-how
• Securing Access
• Provides learning opportunities
• More Characteristics
• Long-term, industry leadership focus
• Relationship reciprocity
• Global rather than country/region vision
• Horizontal rather than vertical relationship
• Retaining individual identities in other markets

8

• Global Strategic Partnerships
• Success Factors
• Win-Win mission
• Up front strategy
• Consensus and discussion governance
• Culture of shared value
• Innovative organizational structure
• Proactive management

------------- Selective sharing collaborative
section
9
International Brand Management

• Brand Basics
• Brand - a complex bundle of impressions and
  experiences in the consumers mind
• Brand Image - a single mental image about the
  product and company that makes it
• Brand Equity - reflects the brands value to a
  company as an intangible asset

10
Local Brands and Products

• Marketing opportunity for global firms
• Lifeblood of domestic companies
• Local brand costs to global firms
• - Limits leverage
• - Limits transfer of knowledge/experience

11
Global Products and Brands

• Global Product
• Meets wants/needs of global market
• True global product
• Concessions
• Global Brands
• Difference between global product?
• Brand Types
• Combination or tiered branding
• Co-branding (dual branding)
• Brand Extensions

-------- International Products Brands -
offered in several markets in a particular region.
12
Global Brand Development

• Considerations
• Risk and leverage tradeoffs
• Marketing mix uniformity?
• Financial sense

13
Attitudes Toward Foreign Products

• Characteristics
• Product Stereotypes ( and -)
• Variance within populations
• Improving your reputation
• Marketing Options
• - Disguise/hide
• - Continue to use/change minds

---------------- AKA Country of Origin
14
Global Product Planning Strategic Alternatives

Strategy 2 Product Extension Communication
Adaptation
Strategy 4 Dual Adaptation
Communication Same Different
Strategy 3 Product Adaptation Communication
Extension
Strategy 1 Dual Extension
Same Different Product