There are several options for entering foreign markets ranging from indirect to direct involvement. Indirect export modes like using an export agent or broker involve minimal control and commitment but are best for disposing of surplus production. Direct export modes like using distributors or agents give greater control over the export process but require more resources to develop and manage. Hierarchical modes provide the highest level of control as the firm wholly owns and operates the foreign business through options like a sales subsidiary, production subsidiary, or region center. The optimal choice depends on factors like the market potential, resources required, and ability to manage risk.
This presentation describes modes of entry in International Market for businesses. Various types of modes has been explained from International business expansion point of view.
With export entry modes a firm’s products are manufactured in the domestic market or a third country and then transferred either directly or indirectly to the host market. Export is the most common mode for initial entry into international markets. Sometimes an unsolicited order is received from a buyer in a foreign country, or a domestic customer expands internationally and places an order for its international operations. This prompts the firm to consider international markets and to investigate their growth potential.
Exporting is thus typically used in initial entry and gradually evolves towards foreign-based operations. In some cases where there are substantial scale economies or a limited number of buyers in the market worldwide (e.g. for aerospace), production may be concentrated in a single or a limited number of locations, and the goods then exported to other markets.
Exporting can be organized in a variety of ways, depending on the number and type of intermediaries. As in the case of wholesaling, export and import agents vary considerably in the range of functions performed. Some, such as export management companies, are the equivalent of full-service wholesalers and perform all functions relating to export. Others are highly specialized and handle only freight forwarding, billing or clearing goods through customs.
In establishing export channels a firm has to decide which functions will be the responsibility of external agents and which will be handled by the firm itself.While export channels may take many different forms, for the purposes of simplicity three major types may be identified: indirect, direct and cooperative export marketing groups.
Global Marketing
Svend Hollensen
Fifth Edition
A decision-oriented approach
This presentation describes modes of entry in International Market for businesses. Various types of modes has been explained from International business expansion point of view.
With export entry modes a firm’s products are manufactured in the domestic market or a third country and then transferred either directly or indirectly to the host market. Export is the most common mode for initial entry into international markets. Sometimes an unsolicited order is received from a buyer in a foreign country, or a domestic customer expands internationally and places an order for its international operations. This prompts the firm to consider international markets and to investigate their growth potential.
Exporting is thus typically used in initial entry and gradually evolves towards foreign-based operations. In some cases where there are substantial scale economies or a limited number of buyers in the market worldwide (e.g. for aerospace), production may be concentrated in a single or a limited number of locations, and the goods then exported to other markets.
Exporting can be organized in a variety of ways, depending on the number and type of intermediaries. As in the case of wholesaling, export and import agents vary considerably in the range of functions performed. Some, such as export management companies, are the equivalent of full-service wholesalers and perform all functions relating to export. Others are highly specialized and handle only freight forwarding, billing or clearing goods through customs.
In establishing export channels a firm has to decide which functions will be the responsibility of external agents and which will be handled by the firm itself.While export channels may take many different forms, for the purposes of simplicity three major types may be identified: indirect, direct and cooperative export marketing groups.
Global Marketing
Svend Hollensen
Fifth Edition
A decision-oriented approach
Assembling is a compromise between exporting and foreign manufacturing. The firm produces domestically all or most of the components or ingredients of its product and ships them to foreign markets to be put together as a finished product.
Assembling is a compromise between exporting and foreign manufacturing. The firm produces domestically all or most of the components or ingredients of its product and ships them to foreign markets to be put together as a finished product.
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
Complete detail of Second Module International Business Dynamics contents, Globalization – Supporting Institutions in International Conflict Resolution
1Chapter 4Marketing 4220 International Sourcing, Logisti.docxfelicidaddinwoodie
1
Chapter 4
Marketing 4220
International Sourcing, Logistics
& Transportation
Methods of Entry Into Foreign Markets
5/21/2015
1
Methods of Entry Into
Foreign Markets
Entering A New Market
Indirect Exporting
Active Exporting
Production Abroad
Other Issues
2
Entering a New Market
Determining the appropriate method to enter a new market depends on several factors:
Size and growth of the market
Potential market share of the exporter
Type of product and marketing strategy of the exporter
Willingness of the exporter to get involved
Characteristics of the importing country
Time horizon considered
Entering a New Market
The company must decide whether market factors favor
Manufacturing abroad
Manufacturing at home
Active Exporting
Indirect Exporting
Entering a New Market
Active Exporting
Exporter actively participates in finding potential markets abroad.
Best option for large firms or firms with international experience.
Indirect Exporting
Exporter does not seek export sales.
Allows manufacturer to concentrate on domestic market and leave exporting to the experts.
Indirect Exporting
Export Trading Companies
Export Management Corporations
Piggy Backing
6
6
Export Trading
Company
An Export Trading Company [ETC] is a firm with offices in multiple countries that purchases goods in one country and resells them in another.
For the “exporter” selling to the ETC, as well as for the “importer” buying from the ETC, the transactions are domestic transactions, even though the goods eventually travel internationally.
Historically, the first ETCs were created in Britain, France, and the Netherlands to facilitate trade with India and Indochina. They were then created in Spain and Portugal for trade in South America. Following World War II, ETCs became popular in Japan as the country began to trade with the outside world. Today, they are almost exclusively Japanese: Mitsui, Mitsubishi, Marubeni, Itochu, etc.
Export Trading Company
ETC
in Country A
ETC
in Country B
Country A
Country B
Firm 1
Firm 2
ETC
Export Management
Corporation
An Export Management Corporation [EMC] is normally located in the exporting country.
The EMC acts as a representative for the exporter abroad, but never takes title to the goods; it acts as a facilitator helping the exporter find buyers and earns a commission on the sale.
A sale through an EMC requires more exporter involvement; it has to ship the goods, invoice the importer, carry the risk of non-payment and has to manage parts of the transaction.
Export Management Corporation
Exporter
Importer
EMC
Exporting Country
Pays a
commission
Sells
Payment
Importing Country
Goods
Piggy Backing
Piggy-backing refers to the possibility of a small firm piggy-backing on another firm’s efforts to enter a foreign market.
For example:
A firm’s custom ...
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
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Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
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Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
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There follows an explanation of some key terms: Coordinate its marketing activities : coordinating and integrating marketing strategies and implementing them across global markets, which involves centralization, delegation, standardization and local responsiveness. Find global customer needs : this involves carrying out international marketing research and analysing market segments, as well as seeking to understand similarities and differences in customer groups across countries. Satisfy global customers : adapting products, services and elements of the marketing mix to satisfy different customer needs across countries and regions. Being better than the competition : assessing, monitoring and responding to global competition by offering better value, low prices, high quality, superior distribution, great advertising strategies or superior brand image.
There follows an explanation of some key terms: Coordinate its marketing activities : coordinating and integrating marketing strategies and implementing them across global markets, which involves centralization, delegation, standardization and local responsiveness. Find global customer needs : this involves carrying out international marketing research and analysing market segments, as well as seeking to understand similarities and differences in customer groups across countries. Satisfy global customers : adapting products, services and elements of the marketing mix to satisfy different customer needs across countries and regions. Being better than the competition : assessing, monitoring and responding to global competition by offering better value, low prices, high quality, superior distribution, great advertising strategies or superior brand image.
Fundamentally, there are four ways of using information to create business value (Marchand, 1999): 1 Managing risks . In the twentieth century the evolution of risk management stimulated the growth of functions and professions such as finance, accounting, auditing and controlling. These information-intensive functions tend to be major consumers of IT resources and people ’s time. 2 Reducing costs . Here the focus is on using information as efficiently as possible to achieve the outputs required from business processes and transactions. This process view of information management is closely linked with the re-engineering and continuous improvement movements of the 1990s. The common elements are focused on eliminating unnecessary and wasteful steps and activities, especially paperwork and information movements, and then simplifying and, if possible, automating the remaining processes. 3 Offering products and services . Here the focus is on knowing one ’s customers, and sharing information with partners and suppliers to enhance customer satisfaction. Many service and manufacturing companies focus on building relationships with customers and on demand management as ways of using information. Such strategies have led companies to invest in point-of-sale systems, account management, customer profiling and service management systems. 4 Inventing new products . Finally, companies can use information to innovate – to invent new products, provide different services and use emerging technologies. Companies such as Intel and Microsoft are learning to operate in ‘continuous discovery mode’, inventing new products more quickly and using market intelligence to retain a competitive edge. Here, information management is about mobilizing people and collaborative work processes to share information and promote discovery throughout the company.
There follows an explanation of some key terms: Coordinate its marketing activities : coordinating and integrating marketing strategies and implementing them across global markets, which involves centralization, delegation, standardization and local responsiveness. Find global customer needs : this involves carrying out international marketing research and analysing market segments, as well as seeking to understand similarities and differences in customer groups across countries. Satisfy global customers : adapting products, services and elements of the marketing mix to satisfy different customer needs across countries and regions. Being better than the competition : assessing, monitoring and responding to global competition by offering better value, low prices, high quality, superior distribution, great advertising strategies or superior brand image.