This document discusses various globalization and entry market strategies for companies. It describes strategies ranging from minimal global investment, such as global sourcing, to significant global investment including establishing a representative office, branch office, strategic alliances/joint ventures, and foreign subsidiaries. Other entry strategies mentioned are exporting/importing, licensing, and franchising. Each strategy involves different levels of commitment, control, and compensation between the investing and host countries.

1. GLOBALIZATION AND ENTRY
MARKET STRATEGIES
Emilia Bini– Angelo Arcuri

2. GLOBALIZATION
• Globalization is the trend,
which has increased
significantly over the last
two decades, of companies
operating almost anywhere
in the world.

3. GLOBAL ORGANISATION
• Exchange goods and services
with consumers
• Use managerial and/or
technical resources
• Employ financial sources and resources
From other
countries

4. ENTRY MARKET STRATEGIES
MINIMAL GLOBAL
INVESTIMENT
• Global sourching
SIGNIFICANT GLOBAL
INVESTIMENT
• Representative office
• Branch office
• Strategic alliance, e.g. Joint
venture
• Foreign subsidiary
• Exporting
and
importing
• Licensing
• Franchising

5. GLOBAL
SOURCING
Entrusting third-party
providers with non-core
functions in order to gain or
maintain a competitive edge.

6. EXPORTING/IMPORTING
Exporting an
organization’s products
involves making
products domestically
and selling them abroad.
Importing involves
acquiring products
made abroad and selling
them domestically.

7. LICENSING
• One party grants another one permission to use
its patents, trademarks, copyrights, designs or
trade secrets.
• The organization receiving the license
compensates the licensor by paying a flat fee,
royalties or a combination of the two.

8. FRANCHISING
• The franchisor gives the franchisee
permission not only to use its
intellectual property rights but also its
operating system. The franchisee often
uses the franchisor’s distribution
systems and marketing campaigns to
sell the franchisor’s products and
services.
• In return, the franchisee usually pays
the franchisor an upfront fee or
royalties.

9. REPRESENTATIVE
OFFICE AND
BRANCH OFFICE
• Representative office
A business office that is established by a company in a
foreign country to conduct marketing and other non-
transactional operations.
• Branch office
It is an office geographically separate from the business’
headquarters. It can perform commercial activities and
earn profits.

10. STRATEGIC ALLIANCE
A partnership between an
organization and a foreign
company partner created to
share resources and knowledge
in developing new products or
building production facilities.
A joint venture is a type of
strategic alliance in which the
partners form a separate,
independent organization for a
business purpose.

11. FOREIGN
SUBSIDIARY
Managers may also directly
invest in a foreign country by
setting up a foreign subsidiary as
a separate and independent
facility or office.

12. Thank you for your kind attenction!