1. Global Market Entry Strategies
Chapter Nine
Global Market Entry Strategies 6

2. Figure 9.1: Market Entry Strategies
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3. Exporting as an Entry Strategy
Indirect Exporting
Direct Exporting
Independent Distributor Vs. Sales Subsidiary
The Company Owned Sales Office (Foreign Sales Subsidiary)
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4. Local Production as an Entry Strategy
Licensing as a Market Entry Strategy
Reasons for Licensing
Disadvantages of Licensing
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5. Local Production as an Entry Strategy (cont’d)
Using Franchising to Enter Markets
Building a Local Manufacturing Base
Contract Manufacturing
Assembly
Full-Scale Integrated Production
Establishing Local Operations to Gain New Business
Establishing Foreign Production to Defend Existing Business
Moving with an Established Customer
Shifting Production Abroad to Save Costs
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6. Forming Joint Ventures Reasons for Entering into Joint Ventures
Ownership Strategies
Forming Joint Ventures
Reasons for Entering into Joint Ventures
Joint Ventures for Entering China
Joint Ventures in Eastern Europe
Joint Venture Divorce: A Constant Danger
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7. Ownership Strategies (cont’d)
Forging Strategic Alliances and Collaborative Strategies
Technology-Based Alliances
Production-Based Alliances
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8. Figure 9. 2: International Alliance of U. S
Figure 9.2: International Alliance of U.S. and Japanese Auto Manufacturers (as of March, 1993)
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9. Ownership Strategies (cont’d)
Distribution-Based Alliances
The Future of Alliances
Entering Markets Through Mergers and Acquisitions
Portal or EBusiness Entry Strategies
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10. Figure 9.3: Considerations for Market Entry Decisions
Preparing an Entry Strategy Analysis
Figure 9.3: Considerations for Market Entry Decisions
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12. Copyright © Houghton Mifflin Company. All rights reserved.

13. Preparing an Entry Strategy Analysis (cont’d)
Estimating Sales
Estimating Costs
Estimating Asset Levels
Forecasting Profitability
Assessing International Risk Factors
Maintaining Flexibility
Assessing Total Company Impact
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14. Entry Strategy Configuration
Entry Strategies Configuration
Layering
Bundling
Bundles
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15. Failure to Achieve Marketing Objectives
Exit Strategies
Failure to Achieve Marketing Objectives
Political, Economic, or Legal Reasons
Consolidation
Result of Negative Reactions in a Firm’s Home Market
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16. Reverse Exit Decision and Reenter
Reentry Strategies
Reverse Exit Decision and Reenter
Examples
India
South Africa
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