1. Global Market Entry Strategies
Chapter 9

2. _______________________, attitude toward ____________,
The particular market entry strategy company executives choose will depend on their:
_______________________,
attitude toward ____________,
how much ____________________ is available, and
how much __________ is sought.

3. Global Market Entry Modes
______________
high
______________
_________/ Commitment/ _________
________________
________________
low
_________________

4. Exporting
_________ toward “going global”
Entails ________________ risk
Represents, in essence, the transfer of __________ to a target market.
Most appropriate for a company with ________________________ in international markets.

5. Licensing
A market entry strategy whereby one company permits a foreign company to make use of its ______, __________, technology, company ________ or other intangible assets in return for a royalty.
It represents, in essence the transfer of ___________ to a target market.

6. Licensing
Advisable when targeting a country with a ________ degree of political ________________ and the company is hoping to limit the risk of ______________.
i.e., Trademarked name & menu items of: ____________________

7. Licensing: the arrangement by which the _____________ brand name appears on:

8. Special Licensing Arrangements
_________________ Licensing: a contractual agreement whereby two companies agree to share __________ developments: Apple & __________.
_________ Manufacturing: requires a global company to provide __________ specifications to a subcontractor or local manufacturer. i.e., ________________

9. Advantages of Licensing
It requires _______________ & thus need not deter even small companies.
The firm immediately gains local __________________________.
Advantages of foreign production apply: savings in __________ & _________________ costs and local production where national suppliers are favored

10. Disadvantages of Licensing
The licensee may become a _________________________.
Limited return: _____% - _____%
________________ the licensee: misunderstandings & conflicts: _______________ control
Management ________________

11. Joint Venture
A market entry mode that traditionally has been used by companies that, for one reason or another, __________________________ to manufacture products for sales in the partner’s home country market.
i.e., the _____________ gov. allows foreign companies to participate in its markets only if the companies establish operations with local enterprises.

12. Two companies ___________ has established joint ventures with in:
_______________
________________
_________

13. _________________________ currently owns a ______% stake in __________ the Czech automaker.

14. Advantages of Joint Ventures
Potentially greater returns than _________________________.
Greater control over ___________ & ____________________.
Better marketing _____________.
More experience in _________________ marketing

15. Joint Venture: Disadvantages
A company incurs significant cost associated with ___________ and _____________________ issues.
The potential _______________ between partners.

16. 3. The partner can evolve into a strong _______________________________.
1978
1995

17. Acquisition
_______________________________ of a foreign company or of overseas manufacturing or marketing facilities.
Why?:
they avoid the ____________________ problems & __________________ of interest that can arise with joint venture.
Or: a company ___________________ any suitable local partners.

18. Global Strategic __________ (GSA): Characteristics (7)
1. The goal is world _____________
2. The vision is _________________
3. Technology transfer is __________
4. Partners compete in markets _______________________ to the GSP (Global Strategic Partnership)

19. 5. Participants share ___________ as well as _____________.
6. Participants maintain ___________ outside the framework of alliance.
7. Participants make _____________ contributions in _______________, _______________, and other areas.

20. Factors of Success of GSPs (Global Strategic Partners): 6
1. ________________________:
A ______________ situation, where participants pursue objectives on the basis of mutual advantage.
2. ______________________:
______, with all partners involved.

21. 3. ________________________:
Discussion & consensus must be the _____________. Partners must be viewed as _______________.
4. ________________________:
_________ chemistry is important, as is the successful development of a shared set of _____________.

22. 5. __________________________:
_________________ structures and designs.
6. ________________________:
________________ issues must be identified in advance and clear, ________________ lines of authority must be established.

23. Market ______________ Strategies
Companies must decide whether to expand by seeking _____ markets in _____________ countries or alternatively, seeking _________ country markets for already identified and ___________ market segments

24. Market Expansion Strategies
Market/Segment
Concentration
Diversification
Country
____________
_____________
2) _____________
_______________
Concentration
3) _____________
_______________
4) _____________
_______________
Diversification

25. Market Expansion Strategies
Strategy 1: it _________________ on a few markets/segments in a _______________ countries.
i.e., ________ markets 2 luxury car models, 30% of __________ sales come from the USA, with most of the rest from Western Europe.

26. Strategy 2: country ____________ & ____________ diversification:
a company serves ___________ markets in a ________ countries.
i.e., according to the U.S. Dept. of Commerce, more that _____% of U.S. companies that export limit sales to _________ countries.

27. Strategy 3: ________________ diversification and market _____________ concentration:
The __________ global strategy whereby a company seeks out the ___________ market for a _____________ or __________ ____________________.

28. ______________________
Strategy 4: ________ & __________ diversification.
The corporate strategy of a __________, ______________________ company.
______________________
Located in _____ countries: Leading edge solutions in Information & Communications, Automation & Control, __________, _________________, Medical, Lighting, Real Estate, & __________________