Entry Strategies

Decision Criteria for IB

Entry & Expansion Decision Model

Exporting

Additional Expansion Alternatives

Market Strategy

Summary

To identify criteria for selection of foreign markets.

To appreciate which market entry alternatives are available to companies.

To recognise export activities as a process developing over time.

To understand different entry startegies: sourcing, licensing,investment & ownership

Different Management Orientations in the Global Arena – EPRG Framework

Ethnocentric Orientation:

Characteristic of domestic & international companies

Opportunities outside the home market are pursued by extending various elements of the marketing mix

Polycentric Orientation

Characteristic of multinational companies

Marketing mix is adapted by autonomous country managers

Regiocentric or Geocentric Orientation:

Characteristic of global & transnational companies

Marketing opportunities are pursued by both extension & adaptation strategies in global markets

driving forces

Technology

Regional Economic Agreements

Market Needs & Wants

Transportation & Communication Improvements

Product Development Costs

Quality

World Economic Trends

Leverage

The Global/ Transnational Corporation

restraining forces

Management Myopia & Organizational Culture

National Controls & Barriers

decision criteria for IB

Political risk

Market access

Factor cost & conditions

Shipping consideration

Country infrastructure

Foreign Exchange

selecting foreign markets... should be based on a number of criteria:

market-related characteristics

cost-related aspects

the regulatory framework

tariffs, duties & non-tariff trade barriers

the importance of these selection criteria depends upon the industry & the markets taken into account

9W's

1.Who buys our product?

2.Who does not buy our product?

3.What need or function does our product serve?

4.What problem does our product solve?

5.What are customers currently buying to satisfy the need and/or solve...