International marketing modes

1. DIFFERENT MODES OF ENTRY IN
TO INTERNATIONAL BUSINESS
NIKHIL RAJPUT
PRIYANSH

2. DIFFERENT MODES OF ENTRY
• Exporting
• Licensing
• Franchising
• Management Contracts
• FDI without alliances
• FDI with alliances

3. FORMS OF EXPORTING
Indirect
Exporting
Direct
Exporting
Intra-corporate
Transfers

4. FORMS OF EXPORTING
Exporting means shipping the goods and services out of the port of a country.
Seller is referred to as an "exporter“.
Buyer is referred to as an "importer.
Indirect Exporting means that the firm participates in international business
through an intermediary and does not deal with foreign customers or markets.
Direct exporting means that the firm works with foreign customers or markets with
the opportunity to develop a relationship.

5. INDIRECT EXPORTING

6. DIRECT EXPORTING

7. INTRA-CORPORATE TRANSFER

8. LICENSING
when a firm, called the licensor, leases the right to use its intellectual property—
technology, work methods, patents, copyrights, brand names, or trademarks—to
another firm, called the licensee, in return for a fee.
The property licensed may include:
• Patents
• Trademarks
• Copyrights
• Technology
• Technical know-how
• Specific business skills

9. BASIC ISSUES IN
INTERNATIONAL LICENSING
• Legal and regulatory compliance.
• Currency and Payment Issues0
• Political and Economic Instability
• Market Conditions.
• Cultural differences

10. FRANCHISING
• Under franschising an independent organization called the franchisee operates the
business under the name of another company called the franchisor.
• In such an arrangement the franchisee pays a fee to the franchisor.
• Franchising is a form of Licensing but the Franchisor can exercise more control over
the Franchisee as compared to that in Licensing.

11. FDI WITH STRATEGIC ALLIANCES
Strategic alliance is a cooperative and collaborative approach to achieve the larger
goals.
Role of alliances
• Many complicated issues are solved through alliances
• They provide the parties each other’s strengths
• Helps in developing new products with the interaction of 2 or more industries
• Meet the challenges of technological revolution.
• Managing heavy outlay
• Become strong to compete with a multinational company.

12. FDI WITH STRATEGIC ALLIANCES
Modes of FDI through alliances are:
Merger: Refer to consolidation of two or more companies to form an all new entity with a new name They pool
their resources, talents, and operations to become a single, larger company.
Acquisition: is like one company buying another. One company, often larger or with more resources, purchases
another company. The acquired company may continue to operate independently or be integrated into the
acquiring company.
Joint Ventures: Joint ventures occur when two or more companies decide to work together on a specific project
or business activity. They form a partnership for that particular venture, sharing responsibilities, risks, and
rewards, but without fully merging their overall operations.

13. EXAMPLES
MERGER
Star TV and UTV (2012)
Idea and vodafone
ACQUISITION
Walmart acquire flipkart
Zomato acquire uber eats
JOINT VENTURE
Uber and Volvo – Autonomus
vehicles

14. FDI WITHOUT ALLIANCES
• Companies enter the international market through FDI , invest their money, establish
manufacturing and marketing facilities through ownership and control.
• Greenfield strategy- The term Greenfield refers to starting of the operations of a
company from scratch in a foreign market.

15. MANAGEMENT CONTRACT
A management contract is a form of business arrangement where one party provides managerial
expertise and services to another party for a specified period.
This arrangement is mainly used in international business when a company operate in a
foreign market but prefers to delegate the day-to-day management responsibilities to
local expert.
Examples:
Hotels:
• A hotel chain hiring a local manager to run a hotel in a different country.
Factories:
• A company might get a local expert to handle the manufacturing side in a new place.