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Licensing & Franchising - Entry Strategies
Corporate Management
Prepared By
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public...
Entry Strategies
• Market entry
strategy is
influenced by the
firm and product
characteristics and
the domestic and
intern...
Foreign Market Entry and Operations Strategies
Exporting
• Direct Exporting.
• Indirect Exporting.
Contractual Agreement
•...
Licensing & Franchising
Licensing is another way
to enter a foreign market
with a limited degree of
risk. Under internatio...
Licensing & Franchising
Franchising is a business model
in which many different
owners share a single brand
name. A parent...
Licensing & Franchising
Licensing is similar to
franchising except that
the franchising
organisation tends to be
more dire...
Licensing & Franchising
The major drawback of
licensing is the problem of
controlling the licensee
due to the absence of
d...
Example
ITC Hotels and ITT
Sheraton corporation had
an agreement under which
ITC Hotel’s Welcom group
franchised two of it...
Licensing and franchising -  entry strategies - corporate management - Strategic Management - Manu Melwin Joy
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Licensing and franchising - entry strategies - corporate management - Strategic Management - Manu Melwin Joy

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Licensing is another way to enter a foreign market with a limited degree of risk. Under international Licensing, a firm in one country permits a firm in another country to use its intellectual property( Patents, trade marks etc).

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Licensing and franchising - entry strategies - corporate management - Strategic Management - Manu Melwin Joy

  1. 1. Licensing & Franchising - Entry Strategies Corporate Management
  2. 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  3. 3. Entry Strategies • Market entry strategy is influenced by the firm and product characteristics and the domestic and international market characteristics.
  4. 4. Foreign Market Entry and Operations Strategies Exporting • Direct Exporting. • Indirect Exporting. Contractual Agreement • Licensing & Franchising. • Strategic Alliance. • Contract Manufacturing. Production facility in foreign market. • Assembly Operations. • Wholly owned manufacturing facility. • Joint Ventures. Mergers and Acquisitions
  5. 5. Licensing & Franchising Licensing is another way to enter a foreign market with a limited degree of risk. Under international Licensing, a firm in one country permits a firm in another country to use its intellectual property( Patents, trade marks etc).
  6. 6. Licensing & Franchising Franchising is a business model in which many different owners share a single brand name. A parent company allows entrepreneurs to use the company's strategies and trademarks; in exchange, the franchisee pays an initial fee and royalties based on revenues. The parent company also provides the franchisee with support, including advertising and training, as part of the franchising agreement.
  7. 7. Licensing & Franchising Licensing is similar to franchising except that the franchising organisation tends to be more directly involved in the development and control of the marketing programme.
  8. 8. Licensing & Franchising The major drawback of licensing is the problem of controlling the licensee due to the absence of direct commitment from the international firm granting the licence. After few years, once the know- how is transferred, there is a risk that the foreign firm may begin to act on its own and the international firm may therefore lose that market.
  9. 9. Example ITC Hotels and ITT Sheraton corporation had an agreement under which ITC Hotel’s Welcom group franchised two of its hotels in Bangkok and Hong kong to ITT Sheraton holding, in exchange, the franchise for Sheraton in India. Later, partners decided to set up a joint venture with Sheraton having major stake to manage all new ITC hotel projects in India.

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