Contract manufacturing - entry strategies - corporate management - Strategic Management - Manu Melwin Joy
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In contract manufacturing, the firm’s product is produced in the foreign market by local producer under contract with the firm. Because the contract covers only manufacturing, marketing is handled by a sales subsidiary of the firm which keeps the market control.
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This document provides an overview of international entrepreneurship. It discusses key topics like the meaning and nature of international entrepreneurship, the importance of international business, and factors that drive entrepreneurs to expand internationally. It also outlines various methods for entering international markets, including exporting, non-equity arrangements, foreign direct investment, and strategic partnerships. Finally, it discusses barriers to international trade such as cultural, economic, political, and regulatory differences between countries.
International market entry modes
The document discusses various modes of entry for international firms looking to enter foreign markets, including the pros and cons of early vs late entry. It then outlines several specific modes of entry: exporting, licensing, franchising, turnkey projects, joint ventures, wholly owned subsidiaries, and strategic alliances. For each mode, it provides details on when a firm may choose to use that option versus not, and diagrams depicting the relationships between the home country firm and local partner or subsidiary.
Session 6 Internationalisation and international market entry strategies.pptx
Internationalisation and international market entry strategies, which are often used by multinational companies to enter new market.
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Strategic options for interring international markets
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Session 6 Internationalisation and international market entry strategies.pptx
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Contract manufacturing - entry strategies - corporate management - Strategic Management - Manu Melwin Joy
- 1. Contract Manufacturing - Entry Strategies Corporate Management
- 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. Entry Strategies • Market entry strategy is influenced by the firm and product characteristics and the domestic and international market characteristics.
- 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. Contract Manufacturing In contract manufacturing, the firm’s product is produced in the foreign market by local producer under contract with the firm. Because the contract covers only manufacturing, marketing is handled by a sales subsidiary of the firm which keeps the market control.
- 6. Contract Manufacturing Contract manufacturing obviates the need for plant investment, transportation costs and custom tariffs and the firm gets the advantage of advertising its product as locally made. Contract manufacturing also enables the firm to avoid labour and other problems that may arise from its lack of familiarity with the local economy and culture.
- 7. Example Balsara’s private label manufacturing activity is focused on the supply of children’s toothpaste formulations. Balsara’s empahsis on Private lable products and contract manufacturing has resulted in increased business from North American and European Markets.