SlideShare ist ein Scribd-Unternehmen logo
1 von 26
Modes of International market
entry or expansion
Do not put all eggs in
one basket.
― Warren Buffet
“Creative Crew”
group identification
Crew number Crew name ID
# Crew 1 Rahat Ahmed Chowdhury 131-116-051
# Crew 2 Shufia Befum Shuly 131-116-066
# Crew 3 Koyray Alahe Tuhin 131-116-060
# Crew 4 Md. Abdul Matin 131-116-070
# Crew 5 Sonchita Rani Nath 131-116-054
# Crew 6 Sourov Badiya 131-116-259
Acknowledgment
Preparing this assignment appeared to be a great experience to us. It added a lot to
our knowledge. This assignment is one of our memorable experiences in student life.
We also would like to give a lot of thanks to our honorable course teacher, Md.
Saidur Rahman a.k.a Polash sir for giving us a wonderful opportunity to make
such an interesting and valuable assignment and giving us a clear concept about the
assignment.
International market entry
 Once a firm has decided to establish itself in
global market—it becomes necessary that
the company studies and analyzes the
various options available to enter the
international markets and select the most
suitable one.
 In order to succeed in international markets,
the decision to select an appropriate entry
mode is a crucial and integral part of a firm’s
international marketing strategy.
Why firms goes international???
Major reasons for firms going international are:
 Profitability
 Growth
 Economies of scale
 Access to resources
 Marketing opportunities
 USP of product & services
Modes of entry
Exporting
Exporting is frequently employed mode of
internationalization.
It is one of the simplest and most common
approaches adopted by firms in their
endeavor to enter foreign markets.
Simply we can define it as,
“Exporting is marketing and sale of
domestically produced goods in another
country. “
Exporting classified
Direct export: Producer sells directly to the
importer. This mode gives the company a
greater degree of control over its distribution
channels.
Indirect export: Indirect exporting is the
process of exporting through domestically
based export intermediaries.
Classification of export continues…..
Intra corporate transfer: It is a process of
exporting which includes, sale of goods by a
firm in one country to an affiliated firm in
another.
Piggybacking: In piggybacking exports, overseas distribution channels of another firm are used by
the company to make its product available in the overseas market. Exporting company know as
‘Rider’, uses a foreign company which has an established distribution network in foreign market,
known as ‘Carrier’.
Pros & Cons of Exporting
E
x
p
o
r
t
i
n
g
Relatively low financial exposure
Permit gradual market entry
Acquire knowledge about local
market
Avoid restrictions on foreign
investment
Vulnerability to tariffs and NTBs
Logistical complexities
Potential conflicts with distributors
Providing offshore services
A company of a country can provide offshore services to
overseas clients with the help of information and
telecommunication technology.
Offshore services is similar to outsourcing. But offshore
activities can’t be termed similar with outsourcing.
Business sectors which provide opportunities for offshore
services include: Insurance, Banking & Finance, Airlines,
Telecom, Automotive, Transportation etc.
‘Gartner’ one of the world’s famous offshore power.
Offshore services
The work is done overseas
Outsourcing
Someone else does the work for us
V/
S
Offshore services versus Outsourcing
Operations decision Outsourcing? Off shoring?
A UK based firm sets up its own call centre in
Bangladesh to serve the UK customers
No Yes
A UK based firm hands over its payroll processing
activities to a specialist supplier in Bangladesh
Yes No
International Licensing
Under a licensing agreement the licensor,
leases the right to use its intellectual
property—technology, work methods, patents,
formulas, inventions, designs, copyrights,
brand names, or trademarks—to licensee, in
return for a fee.
Pros & Cons of International Licensing
• Low financial risks
• Low-cost way to assess
market potential
• Avoid tariffs, NTBs,
restrictions on foreign
investment
• Licensee provides
knowledge of local
markets
• Limited market
opportunities/profits
• Dependence on licensee
• Potential conflicts with
licensee
• Possibility of creating
future competitor
International Franchising
Under franchising, an independent organization
called the franchisee operates the business
under the name of another company called the
franchisor.
Franchising is a form of Licensing but the
Franchisor can exercise more control over the
Franchisee as compared to that in Licensing
Pros & Cons of International Franchising
Pros
• Proven products & Services
• Proven Trade Mark
• Reduced Risk of Failure
Cons
• Does not provide
experiential knowledge in
foreign markets
• High potential for
opportunism
• High monitoring costs
Licensing
 Operations can be done by own
way
 Licensee has to pay royalty fee and
it is comparatively low
 Products are major source of
concern
 Life cycle: 15-20 years
 Licensee enjoys substantial
measure of fee negotiation
 Licensor exercise less control over
licensee
FranchisingV/
S
Licensing versus Franchising
 Operations is done by following
licensor’s rule
 Franchisee has to pay management
fee and it is very high
 Covers all aspects of business
including goodwill, trade marks,
IPR etc
 Life cycle: 5-10 years
 Standard fee structure
 Franchisor exerts greater control
over franchisee
Turnkey project(B.O.T)
A turnkey project is a contract under which a
firm agrees to fully design, construct and
equip a manufacturing/business/service facility
and turn the project over to the purchaser
when it is ready for operation, for
remuneration
The company hires a contractor in the desired
country that they want to create an operation.
At the completion of the contract, the foreign
company gives the “key” to the project and it
is ready for operation.
Pros & Cons of Turnkey project
•Focus firm’s resources on
its area of expertise
•Avoid all long-term
operational risks
•Financial risks
•Cost overruns
•Construction risks
•Problems with suppliers
Contract manufacturing
Contract manufacturing is a process that
establishes a working agreement between two
companies. As part of the agreement, one
company produces parts or other materials on
behalf of their client. Simply it can be defined
as the process of outsourcing entire or part of
a company’s manufacturing operations.
A number of global companies outsource their
manufacturing activities to low-cost locations.
Pros & Cons of Contract manufacturing
Low financial risks
Minimize resources devoted to
manufacturing
Focus firm’s resources on other
elements of the value chain
Reduced control (may affect
quality, delivery schedules, etc.)
Reduce learning potential
Potential public relations
problems
Management contract
A management contract is an agreement
between two companies whereby one company
provides managerial assistance, technical
expertise and specialized services to the second
company for a certain period of time in return for
monetary compensation.
Most management contracts provide for
training of local personnel who will eventually
take over the management responsibilities.
Pros & Cons of Management contract
Pros
• Focus firm’s resources on its
area of contracts
• Minimal financial exposure
Cons
• Potential returns limited by
contract expertise
• May unintentionally transfer
proprietary knowledge and
techniques to contractee
Specialized entry modes
Management contract, Turnkey projects, &
Contract manufacturing are known as
specialized entry modes. Previously we have
discussed about them. Now we will know:
Why they are called specialized entry modes?
These entry modes are called ‘special’ because
the activities included on them contains short term
investment, less litigation risks, less exposure
to financial risks, compared to other sorts of entry
modes
Thank You!!!
If You have any question

Weitere ähnliche Inhalte

Was ist angesagt?

Modes of Entry in International Business
Modes of Entry in International BusinessModes of Entry in International Business
Modes of Entry in International BusinessAbhinav Singh
 
International Business Introduction, Nature and Scope
International Business   Introduction, Nature and ScopeInternational Business   Introduction, Nature and Scope
International Business Introduction, Nature and ScopeDheeraj Rajput
 
Promotional strategies in international marketing
Promotional strategies in international marketingPromotional strategies in international marketing
Promotional strategies in international marketingDr. Sneha Sharma
 
International Business Modes
International Business ModesInternational Business Modes
International Business ModesPooja Tayal
 
International Marketing Management - Introduction
International Marketing Management - IntroductionInternational Marketing Management - Introduction
International Marketing Management - IntroductionSOMASUNDARAM T
 
International promotion
International promotionInternational promotion
International promotionRew Sha
 
International distribution
International distributionInternational distribution
International distributionManav Agarwal
 
Entry strategies in international marketing
Entry strategies in international marketingEntry strategies in international marketing
Entry strategies in international marketingHarmanjeet Kaur
 
Global distribution strategies
Global distribution strategiesGlobal distribution strategies
Global distribution strategiesluispachon
 
International pricing strategy
International pricing strategyInternational pricing strategy
International pricing strategySubrata Kumar Dey
 
5. Methods of Payment in International Trade/Export and Import Finance
5. Methods of Payment in International Trade/Export and Import Finance5. Methods of Payment in International Trade/Export and Import Finance
5. Methods of Payment in International Trade/Export and Import FinanceCharu Rastogi
 
Modes of Entry into International Business
Modes of Entry into International BusinessModes of Entry into International Business
Modes of Entry into International BusinessPrathamesh Parab
 
Introduction of International business
Introduction of International businessIntroduction of International business
Introduction of International businessNishant Pahad
 
International market entry modes
International market entry modesInternational market entry modes
International market entry modesNinh Hai Nguyen
 
Entry Strategies - International Business - Manu Melwin Joy
Entry Strategies - International Business - Manu Melwin JoyEntry Strategies - International Business - Manu Melwin Joy
Entry Strategies - International Business - Manu Melwin Joymanumelwin
 

Was ist angesagt? (20)

Modes of Entry in International Business
Modes of Entry in International BusinessModes of Entry in International Business
Modes of Entry in International Business
 
International Business Introduction, Nature and Scope
International Business   Introduction, Nature and ScopeInternational Business   Introduction, Nature and Scope
International Business Introduction, Nature and Scope
 
Promotional strategies in international marketing
Promotional strategies in international marketingPromotional strategies in international marketing
Promotional strategies in international marketing
 
International Business Modes
International Business ModesInternational Business Modes
International Business Modes
 
International Marketing Management - Introduction
International Marketing Management - IntroductionInternational Marketing Management - Introduction
International Marketing Management - Introduction
 
International promotion
International promotionInternational promotion
International promotion
 
Ifm importance pptx
Ifm importance pptxIfm importance pptx
Ifm importance pptx
 
International distribution
International distributionInternational distribution
International distribution
 
Entry strategies in international marketing
Entry strategies in international marketingEntry strategies in international marketing
Entry strategies in international marketing
 
Global distribution strategies
Global distribution strategiesGlobal distribution strategies
Global distribution strategies
 
International pricing strategy
International pricing strategyInternational pricing strategy
International pricing strategy
 
5. Methods of Payment in International Trade/Export and Import Finance
5. Methods of Payment in International Trade/Export and Import Finance5. Methods of Payment in International Trade/Export and Import Finance
5. Methods of Payment in International Trade/Export and Import Finance
 
Regional Economic Integration
Regional Economic IntegrationRegional Economic Integration
Regional Economic Integration
 
Modes of entry
Modes of entryModes of entry
Modes of entry
 
Modes of Entry into International Business
Modes of Entry into International BusinessModes of Entry into International Business
Modes of Entry into International Business
 
International marketing
International marketingInternational marketing
International marketing
 
Introduction of International business
Introduction of International businessIntroduction of International business
Introduction of International business
 
International market entry modes
International market entry modesInternational market entry modes
International market entry modes
 
Entry Strategies - International Business - Manu Melwin Joy
Entry Strategies - International Business - Manu Melwin JoyEntry Strategies - International Business - Manu Melwin Joy
Entry Strategies - International Business - Manu Melwin Joy
 
Forms of international business
Forms of international businessForms of international business
Forms of international business
 

Andere mochten auch

International market entry strategies By mrittika wahid
International market entry strategies By mrittika wahidInternational market entry strategies By mrittika wahid
International market entry strategies By mrittika wahidTuan Bishwamitra Chowdhury
 
International Market Entry Strategies
International Market Entry StrategiesInternational Market Entry Strategies
International Market Entry Strategiesthinkexport
 
MGF2351 Tutorial 10 Week 10
MGF2351 Tutorial 10 Week 10MGF2351 Tutorial 10 Week 10
MGF2351 Tutorial 10 Week 10Kirti Mishra
 
International Market Entry Methods Flat
International Market Entry Methods FlatInternational Market Entry Methods Flat
International Market Entry Methods FlatSlideShop.com
 
Launching of Tetra pack Coconut Water in International Market
Launching of Tetra pack Coconut Water in International MarketLaunching of Tetra pack Coconut Water in International Market
Launching of Tetra pack Coconut Water in International MarketViraj Shah
 
foreign direct investment (FDI) INDIA
foreign direct investment (FDI) INDIAforeign direct investment (FDI) INDIA
foreign direct investment (FDI) INDIAsatish rai
 
Modes Of International Business
Modes Of International BusinessModes Of International Business
Modes Of International Businessitsvineeth209
 
MODES OF ENTRY INTO IB
MODES OF ENTRY INTO IBMODES OF ENTRY INTO IB
MODES OF ENTRY INTO IBAMIRAH AMMARAH
 
Foreign direct investment , FDI in India by abhishek tripathi
Foreign direct investment , FDI in India by abhishek tripathiForeign direct investment , FDI in India by abhishek tripathi
Foreign direct investment , FDI in India by abhishek tripathiAbhishek Tripathi
 
International market entry planning (in the generic pharma industry)
International market entry planning (in the generic pharma industry)International market entry planning (in the generic pharma industry)
International market entry planning (in the generic pharma industry)✪ Asa Cox (ThePharmaPartner)
 
Modes of entering international business
Modes of entering international businessModes of entering international business
Modes of entering international businessSHuv Debnath
 
Henry fayols priciple of management- image ppt
Henry fayols priciple of management- image pptHenry fayols priciple of management- image ppt
Henry fayols priciple of management- image pptNajeeb Ahmed
 
Modes of entering international business
Modes of entering international businessModes of entering international business
Modes of entering international businessSHuv Debnath
 
foreign direct investment in India (n) economy
foreign direct investment in India (n) economyforeign direct investment in India (n) economy
foreign direct investment in India (n) economyBishwajeet Bhattacharya
 
International market netherlands
International market   netherlandsInternational market   netherlands
International market netherlandsElodie Dubois
 
International Entrepreneurship - Entry Mode Strategies
International Entrepreneurship - Entry Mode StrategiesInternational Entrepreneurship - Entry Mode Strategies
International Entrepreneurship - Entry Mode StrategiesSenthilKumar Mukund
 
International entry modes
International entry modesInternational entry modes
International entry modesamitgurus
 

Andere mochten auch (20)

International market entry strategies By mrittika wahid
International market entry strategies By mrittika wahidInternational market entry strategies By mrittika wahid
International market entry strategies By mrittika wahid
 
International Market Entry Strategies
International Market Entry StrategiesInternational Market Entry Strategies
International Market Entry Strategies
 
MGF2351 Tutorial 10 Week 10
MGF2351 Tutorial 10 Week 10MGF2351 Tutorial 10 Week 10
MGF2351 Tutorial 10 Week 10
 
Modes of global entry
Modes of global entryModes of global entry
Modes of global entry
 
International Market Entry Methods Flat
International Market Entry Methods FlatInternational Market Entry Methods Flat
International Market Entry Methods Flat
 
Launching of Tetra pack Coconut Water in International Market
Launching of Tetra pack Coconut Water in International MarketLaunching of Tetra pack Coconut Water in International Market
Launching of Tetra pack Coconut Water in International Market
 
foreign direct investment (FDI) INDIA
foreign direct investment (FDI) INDIAforeign direct investment (FDI) INDIA
foreign direct investment (FDI) INDIA
 
FDI
FDIFDI
FDI
 
Modes Of International Business
Modes Of International BusinessModes Of International Business
Modes Of International Business
 
MODES OF ENTRY INTO IB
MODES OF ENTRY INTO IBMODES OF ENTRY INTO IB
MODES OF ENTRY INTO IB
 
Foreign direct investment , FDI in India by abhishek tripathi
Foreign direct investment , FDI in India by abhishek tripathiForeign direct investment , FDI in India by abhishek tripathi
Foreign direct investment , FDI in India by abhishek tripathi
 
International market entry planning (in the generic pharma industry)
International market entry planning (in the generic pharma industry)International market entry planning (in the generic pharma industry)
International market entry planning (in the generic pharma industry)
 
Modes of entering international business
Modes of entering international businessModes of entering international business
Modes of entering international business
 
Ppt On Sm
Ppt On SmPpt On Sm
Ppt On Sm
 
Henry fayols priciple of management- image ppt
Henry fayols priciple of management- image pptHenry fayols priciple of management- image ppt
Henry fayols priciple of management- image ppt
 
Modes of entering international business
Modes of entering international businessModes of entering international business
Modes of entering international business
 
foreign direct investment in India (n) economy
foreign direct investment in India (n) economyforeign direct investment in India (n) economy
foreign direct investment in India (n) economy
 
International market netherlands
International market   netherlandsInternational market   netherlands
International market netherlands
 
International Entrepreneurship - Entry Mode Strategies
International Entrepreneurship - Entry Mode StrategiesInternational Entrepreneurship - Entry Mode Strategies
International Entrepreneurship - Entry Mode Strategies
 
International entry modes
International entry modesInternational entry modes
International entry modes
 

Ähnlich wie International market entry modes

International business management
International business management International business management
International business management Sumit Kumar Yadav
 
Foreign market entry ppt notes.ppt
Foreign market entry ppt notes.pptForeign market entry ppt notes.ppt
Foreign market entry ppt notes.pptzainakasujja
 
Modes of Entry-GBM-2.pptx
Modes of Entry-GBM-2.pptxModes of Entry-GBM-2.pptx
Modes of Entry-GBM-2.pptxdrswathi27
 
International Business
International BusinessInternational Business
International Businesssimran vohra
 
International_Markets_Entry_Strategies.ppt
International_Markets_Entry_Strategies.pptInternational_Markets_Entry_Strategies.ppt
International_Markets_Entry_Strategies.pptTaniaGhosh34
 
INTERNATIONAL BUSINESS presentation comm
INTERNATIONAL BUSINESS presentation commINTERNATIONAL BUSINESS presentation comm
INTERNATIONAL BUSINESS presentation commShreyaGupta398887
 
Entry modes for global business market
Entry modes for global business marketEntry modes for global business market
Entry modes for global business marketQazafie Mehrzad
 
International business
International businessInternational business
International businessByju Antony
 
International business entry mode
International business entry modeInternational business entry mode
International business entry modeDr Ahamed Basheer
 
International channels of distribution.pptx
International channels of distribution.pptxInternational channels of distribution.pptx
International channels of distribution.pptxDushyantGupta33
 
Entry strategy and strategic alliances
Entry strategy and strategic alliancesEntry strategy and strategic alliances
Entry strategy and strategic alliancesDEVIKA S INDU
 
Different modes of entry into international market
Different modes of entry into international marketDifferent modes of entry into international market
Different modes of entry into international marketJunaid Mukadam
 
International Business Dynamics module 2 by Nagarjun Reddy
International Business Dynamics module 2 by Nagarjun ReddyInternational Business Dynamics module 2 by Nagarjun Reddy
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
 

Ähnlich wie International market entry modes (20)

International business management
International business management International business management
International business management
 
Foreign market entry ppt notes.ppt
Foreign market entry ppt notes.pptForeign market entry ppt notes.ppt
Foreign market entry ppt notes.ppt
 
Foreign-Market Entry
Foreign-Market EntryForeign-Market Entry
Foreign-Market Entry
 
IBM UNIT 2
IBM UNIT 2IBM UNIT 2
IBM UNIT 2
 
Modes of Entry-GBM-2.pptx
Modes of Entry-GBM-2.pptxModes of Entry-GBM-2.pptx
Modes of Entry-GBM-2.pptx
 
International Business
International BusinessInternational Business
International Business
 
International_Markets_Entry_Strategies.ppt
International_Markets_Entry_Strategies.pptInternational_Markets_Entry_Strategies.ppt
International_Markets_Entry_Strategies.ppt
 
market entry methods
market entry methodsmarket entry methods
market entry methods
 
Lecture 4 FDI.ppt
Lecture 4 FDI.pptLecture 4 FDI.ppt
Lecture 4 FDI.ppt
 
Modes of entry
Modes of entryModes of entry
Modes of entry
 
Lecture 5 FDI.ppt
Lecture 5 FDI.pptLecture 5 FDI.ppt
Lecture 5 FDI.ppt
 
INTERNATIONAL BUSINESS presentation comm
INTERNATIONAL BUSINESS presentation commINTERNATIONAL BUSINESS presentation comm
INTERNATIONAL BUSINESS presentation comm
 
Entry modes for global business market
Entry modes for global business marketEntry modes for global business market
Entry modes for global business market
 
International business
International businessInternational business
International business
 
International business entry mode
International business entry modeInternational business entry mode
International business entry mode
 
International channels of distribution.pptx
International channels of distribution.pptxInternational channels of distribution.pptx
International channels of distribution.pptx
 
Entry strategy and strategic alliances
Entry strategy and strategic alliancesEntry strategy and strategic alliances
Entry strategy and strategic alliances
 
Different modes of entry into international market
Different modes of entry into international marketDifferent modes of entry into international market
Different modes of entry into international market
 
Lecture 6.pdf
Lecture 6.pdfLecture 6.pdf
Lecture 6.pdf
 
International Business Dynamics module 2 by Nagarjun Reddy
International Business Dynamics module 2 by Nagarjun ReddyInternational Business Dynamics module 2 by Nagarjun Reddy
International Business Dynamics module 2 by Nagarjun Reddy
 

Mehr von Rahat Chowdhury

Dynamic BI with Excel.pdf
Dynamic BI with Excel.pdfDynamic BI with Excel.pdf
Dynamic BI with Excel.pdfRahat Chowdhury
 
Evolution of Management Thought
Evolution of Management Thought Evolution of Management Thought
Evolution of Management Thought Rahat Chowdhury
 
Economic geography of the ‘united states of
Economic geography of the ‘united states ofEconomic geography of the ‘united states of
Economic geography of the ‘united states ofRahat Chowdhury
 
Ais development strategy
Ais development strategyAis development strategy
Ais development strategyRahat Chowdhury
 
Recruitment & Selection
Recruitment & Selection Recruitment & Selection
Recruitment & Selection Rahat Chowdhury
 
Bangladesh agricultural product marketing plan
Bangladesh agricultural product marketing planBangladesh agricultural product marketing plan
Bangladesh agricultural product marketing planRahat Chowdhury
 

Mehr von Rahat Chowdhury (10)

Dynamic BI with Excel.pdf
Dynamic BI with Excel.pdfDynamic BI with Excel.pdf
Dynamic BI with Excel.pdf
 
Evolution of Management Thought
Evolution of Management Thought Evolution of Management Thought
Evolution of Management Thought
 
Economic geography of the ‘united states of
Economic geography of the ‘united states ofEconomic geography of the ‘united states of
Economic geography of the ‘united states of
 
Collective bargaining
Collective bargainingCollective bargaining
Collective bargaining
 
Ais development strategy
Ais development strategyAis development strategy
Ais development strategy
 
Recruitment & Selection
Recruitment & Selection Recruitment & Selection
Recruitment & Selection
 
Intermediate accounting
Intermediate accountingIntermediate accounting
Intermediate accounting
 
Cost accounting
Cost accountingCost accounting
Cost accounting
 
Forex
ForexForex
Forex
 
Bangladesh agricultural product marketing plan
Bangladesh agricultural product marketing planBangladesh agricultural product marketing plan
Bangladesh agricultural product marketing plan
 

Kürzlich hochgeladen

The Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsThe Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsCIToolkit
 
Management 11th Edition - Chapter 12 - Managing Human Resources
Management 11th Edition - Chapter 12 - Managing Human ResourcesManagement 11th Edition - Chapter 12 - Managing Human Resources
Management 11th Edition - Chapter 12 - Managing Human Resourcesshakkardaddy
 
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsMind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsCIToolkit
 
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...Nagarjuna Reddy Aturi
 
Chapter 1 Performance Management HRM.ppt
Chapter 1 Performance Management HRM.pptChapter 1 Performance Management HRM.ppt
Chapter 1 Performance Management HRM.ppt2020102713
 
Research Methods ONE.ppt of course public administiretion
Research Methods ONE.ppt of course public administiretionResearch Methods ONE.ppt of course public administiretion
Research Methods ONE.ppt of course public administiretionjamaalfaami
 
Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024
Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024
Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024Giuseppe De Simone
 
The Final Activity in Project Management
The Final Activity in Project ManagementThe Final Activity in Project Management
The Final Activity in Project ManagementCIToolkit
 
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证jdkhjh
 
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why DiagramBeyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why DiagramCIToolkit
 
THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...
THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...
THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...PROF. PAUL ALLIEU KAMARA
 
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic TraitsDigital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic TraitsHannah Smith
 
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light AssessmentFrom Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light AssessmentCIToolkit
 
Management 11th Edition - Chapter 9 - Strategic Management
Management 11th Edition - Chapter 9 - Strategic ManagementManagement 11th Edition - Chapter 9 - Strategic Management
Management 11th Edition - Chapter 9 - Strategic Managementshakkardaddy
 
From Goals to Actions: Uncovering the Key Components of Improvement Roadmaps
From Goals to Actions: Uncovering the Key Components of Improvement RoadmapsFrom Goals to Actions: Uncovering the Key Components of Improvement Roadmaps
From Goals to Actions: Uncovering the Key Components of Improvement RoadmapsCIToolkit
 
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational DesignManagement 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational Designshakkardaddy
 
Adapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingAdapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingCIToolkit
 
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...dsnow9802
 
Measuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield MetricsMeasuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield MetricsCIToolkit
 
How Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesHow Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesMassimo Canducci
 

Kürzlich hochgeladen (20)

The Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data SetsThe Role of Box Plots in Comparing Multiple Data Sets
The Role of Box Plots in Comparing Multiple Data Sets
 
Management 11th Edition - Chapter 12 - Managing Human Resources
Management 11th Edition - Chapter 12 - Managing Human ResourcesManagement 11th Edition - Chapter 12 - Managing Human Resources
Management 11th Edition - Chapter 12 - Managing Human Resources
 
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and ThoughtsMind Mapping: A Visual Approach to Organize Ideas and Thoughts
Mind Mapping: A Visual Approach to Organize Ideas and Thoughts
 
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
Advancing Enterprise Risk Management Practices- A Strategic Framework by Naga...
 
Chapter 1 Performance Management HRM.ppt
Chapter 1 Performance Management HRM.pptChapter 1 Performance Management HRM.ppt
Chapter 1 Performance Management HRM.ppt
 
Research Methods ONE.ppt of course public administiretion
Research Methods ONE.ppt of course public administiretionResearch Methods ONE.ppt of course public administiretion
Research Methods ONE.ppt of course public administiretion
 
Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024
Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024
Effective learning in the Age of Hybrid Work - Agile Saturday Tallinn 2024
 
The Final Activity in Project Management
The Final Activity in Project ManagementThe Final Activity in Project Management
The Final Activity in Project Management
 
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
 
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why DiagramBeyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
 
THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...
THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...
THE LEADERSHIP TO CHANGE THE WOLRD THIS IS YOUR HOUR PURSUES YOUR GIFT, TALEN...
 
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic TraitsDigital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
Digital PR Summit - Leadership Lessons: Myths, Mistakes, & Toxic Traits
 
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light AssessmentFrom Red to Green: Enhancing Decision-Making with Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment
 
Management 11th Edition - Chapter 9 - Strategic Management
Management 11th Edition - Chapter 9 - Strategic ManagementManagement 11th Edition - Chapter 9 - Strategic Management
Management 11th Edition - Chapter 9 - Strategic Management
 
From Goals to Actions: Uncovering the Key Components of Improvement Roadmaps
From Goals to Actions: Uncovering the Key Components of Improvement RoadmapsFrom Goals to Actions: Uncovering the Key Components of Improvement Roadmaps
From Goals to Actions: Uncovering the Key Components of Improvement Roadmaps
 
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational DesignManagement 11th Edition - Chapter 11 - Adaptive Organizational Design
Management 11th Edition - Chapter 11 - Adaptive Organizational Design
 
Adapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-MakingAdapting to Change: Using PEST Analysis for Better Decision-Making
Adapting to Change: Using PEST Analysis for Better Decision-Making
 
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
Hajra Karrim: Transformative Leadership Driving Innovation and Efficiency in ...
 
Measuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield MetricsMeasuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield Metrics
 
How Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human ResourcesHow Technologies will change the relationship with Human Resources
How Technologies will change the relationship with Human Resources
 

International market entry modes

  • 1. Modes of International market entry or expansion Do not put all eggs in one basket. ― Warren Buffet
  • 2. “Creative Crew” group identification Crew number Crew name ID # Crew 1 Rahat Ahmed Chowdhury 131-116-051 # Crew 2 Shufia Befum Shuly 131-116-066 # Crew 3 Koyray Alahe Tuhin 131-116-060 # Crew 4 Md. Abdul Matin 131-116-070 # Crew 5 Sonchita Rani Nath 131-116-054 # Crew 6 Sourov Badiya 131-116-259
  • 3. Acknowledgment Preparing this assignment appeared to be a great experience to us. It added a lot to our knowledge. This assignment is one of our memorable experiences in student life. We also would like to give a lot of thanks to our honorable course teacher, Md. Saidur Rahman a.k.a Polash sir for giving us a wonderful opportunity to make such an interesting and valuable assignment and giving us a clear concept about the assignment.
  • 4. International market entry  Once a firm has decided to establish itself in global market—it becomes necessary that the company studies and analyzes the various options available to enter the international markets and select the most suitable one.  In order to succeed in international markets, the decision to select an appropriate entry mode is a crucial and integral part of a firm’s international marketing strategy.
  • 5. Why firms goes international??? Major reasons for firms going international are:  Profitability  Growth  Economies of scale  Access to resources  Marketing opportunities  USP of product & services
  • 7. Exporting Exporting is frequently employed mode of internationalization. It is one of the simplest and most common approaches adopted by firms in their endeavor to enter foreign markets. Simply we can define it as, “Exporting is marketing and sale of domestically produced goods in another country. “
  • 8. Exporting classified Direct export: Producer sells directly to the importer. This mode gives the company a greater degree of control over its distribution channels. Indirect export: Indirect exporting is the process of exporting through domestically based export intermediaries.
  • 9. Classification of export continues….. Intra corporate transfer: It is a process of exporting which includes, sale of goods by a firm in one country to an affiliated firm in another. Piggybacking: In piggybacking exports, overseas distribution channels of another firm are used by the company to make its product available in the overseas market. Exporting company know as ‘Rider’, uses a foreign company which has an established distribution network in foreign market, known as ‘Carrier’.
  • 10. Pros & Cons of Exporting E x p o r t i n g Relatively low financial exposure Permit gradual market entry Acquire knowledge about local market Avoid restrictions on foreign investment Vulnerability to tariffs and NTBs Logistical complexities Potential conflicts with distributors
  • 11. Providing offshore services A company of a country can provide offshore services to overseas clients with the help of information and telecommunication technology. Offshore services is similar to outsourcing. But offshore activities can’t be termed similar with outsourcing. Business sectors which provide opportunities for offshore services include: Insurance, Banking & Finance, Airlines, Telecom, Automotive, Transportation etc. ‘Gartner’ one of the world’s famous offshore power.
  • 12. Offshore services The work is done overseas Outsourcing Someone else does the work for us V/ S Offshore services versus Outsourcing Operations decision Outsourcing? Off shoring? A UK based firm sets up its own call centre in Bangladesh to serve the UK customers No Yes A UK based firm hands over its payroll processing activities to a specialist supplier in Bangladesh Yes No
  • 13. International Licensing Under a licensing agreement the licensor, leases the right to use its intellectual property—technology, work methods, patents, formulas, inventions, designs, copyrights, brand names, or trademarks—to licensee, in return for a fee.
  • 14. Pros & Cons of International Licensing • Low financial risks • Low-cost way to assess market potential • Avoid tariffs, NTBs, restrictions on foreign investment • Licensee provides knowledge of local markets • Limited market opportunities/profits • Dependence on licensee • Potential conflicts with licensee • Possibility of creating future competitor
  • 15. International Franchising Under franchising, an independent organization called the franchisee operates the business under the name of another company called the franchisor. Franchising is a form of Licensing but the Franchisor can exercise more control over the Franchisee as compared to that in Licensing
  • 16. Pros & Cons of International Franchising Pros • Proven products & Services • Proven Trade Mark • Reduced Risk of Failure Cons • Does not provide experiential knowledge in foreign markets • High potential for opportunism • High monitoring costs
  • 17. Licensing  Operations can be done by own way  Licensee has to pay royalty fee and it is comparatively low  Products are major source of concern  Life cycle: 15-20 years  Licensee enjoys substantial measure of fee negotiation  Licensor exercise less control over licensee FranchisingV/ S Licensing versus Franchising  Operations is done by following licensor’s rule  Franchisee has to pay management fee and it is very high  Covers all aspects of business including goodwill, trade marks, IPR etc  Life cycle: 5-10 years  Standard fee structure  Franchisor exerts greater control over franchisee
  • 18. Turnkey project(B.O.T) A turnkey project is a contract under which a firm agrees to fully design, construct and equip a manufacturing/business/service facility and turn the project over to the purchaser when it is ready for operation, for remuneration The company hires a contractor in the desired country that they want to create an operation. At the completion of the contract, the foreign company gives the “key” to the project and it is ready for operation.
  • 19. Pros & Cons of Turnkey project •Focus firm’s resources on its area of expertise •Avoid all long-term operational risks •Financial risks •Cost overruns •Construction risks •Problems with suppliers
  • 20. Contract manufacturing Contract manufacturing is a process that establishes a working agreement between two companies. As part of the agreement, one company produces parts or other materials on behalf of their client. Simply it can be defined as the process of outsourcing entire or part of a company’s manufacturing operations. A number of global companies outsource their manufacturing activities to low-cost locations.
  • 21. Pros & Cons of Contract manufacturing Low financial risks Minimize resources devoted to manufacturing Focus firm’s resources on other elements of the value chain Reduced control (may affect quality, delivery schedules, etc.) Reduce learning potential Potential public relations problems
  • 22. Management contract A management contract is an agreement between two companies whereby one company provides managerial assistance, technical expertise and specialized services to the second company for a certain period of time in return for monetary compensation. Most management contracts provide for training of local personnel who will eventually take over the management responsibilities.
  • 23. Pros & Cons of Management contract Pros • Focus firm’s resources on its area of contracts • Minimal financial exposure Cons • Potential returns limited by contract expertise • May unintentionally transfer proprietary knowledge and techniques to contractee
  • 24. Specialized entry modes Management contract, Turnkey projects, & Contract manufacturing are known as specialized entry modes. Previously we have discussed about them. Now we will know: Why they are called specialized entry modes? These entry modes are called ‘special’ because the activities included on them contains short term investment, less litigation risks, less exposure to financial risks, compared to other sorts of entry modes
  • 26. If You have any question