GLOBAL MARKET ENTRY STRATEGIES

licensor / licensee
Assets: brand name, company name, patent, trade secret,

product formulation
e.g. Hugo Boss
advantages: -circumvent tariffs, quotas export barriers
-considerable autonomy (free to adapt goods)
e.g. Disney

contemplate cross tech exchange (full cross licensing)
Special licensig arrangements:
-Contract manufacturing
-Franchising

Which are 3 other advantages of good licensing arrangements?
Q3:Why does

the Chinese goverment requires foreign franchisers to set their own stores for at least one year before franchising?

contract.
A2:
-Create export market opportunities,
-Create low risk manufacturing relationships,
-Speed

up difussion of new products or technologies.
A3:
-Increase the direct capital investment.
-Make sure the business is running well when handed to licensees.
i.e eliminate entry risks and reduce entry costs

operations outside the home country.
Foreign direct investment (FDI)
Allows companies to

produce, sell, and compete locally in key markets.
e.g. Japanese car plants in USA.


-minority or majority... shares in joint ventures
equity stakes in other company
-Outright acquisition
(full ownership)
-Or a combination of both

e.g. UPS

INVESTMENT

on their technological superiority or core competence.
Look new strategies

to enhance environmental responsiveness.
Developing flexible organizational capabilities, innovating continuosly, and revising global strategies.

pursue a common goal.
Strategic alliances exhibit 3 characteristics:
1: Participants remain

independent
2: They shared benefits and control over the assigned tasks
3: They make ongoing contributions on technology, products and others.
Disadvantages:
-Shared control generate management challenges.
-Strenghtening a competitor.

long term strategy to achieve world leadership by cost leadership/differentiation.
2:Companies

share their strengths while learning from eachother.
3: Their visions and efforts are truly global.
4: Horizontal relationship (tech sharing, resource pooling)
5: In markets out of the agreement national and ideological identities are kept.

Q4: What are the common reasons for establishing alliances?

the skills, capital, know-how to do it alone
-Securing access to

national and regional markets.
-Learning opportunities

expected
Establish limits to cooperation

of their big size and untapped business opportunities?
Q6: What makes

Russia an excellent location for alliance? Which are the possible problems there?

an enterprise group that cooperates to dominate a market or

segment.
Usually based on cross ownership of stock through banks between companies, buyers and nonfinancial suppliers.
Sit on each other´s boards, Share information, coordinate prices.
Q7: How has Keiretsu contributed to the development and suistainability of Japanese economy?

of companies centered around a central bank or holding company

and dominated by a founding family.
Q8: How where "chaebols" created?

strategic alliances to make the most of the coming era

of electronic integration.
Q9: Why was Sematech created?

Beyond strategic alliences In a relationship enterprise groupings of firms in different industries and countries would pursue common goals encouraging them to act as a single firm.
Q10: (Hypothetically) How would airplane builders, airline companies and the Chinese goverment cooperate into improving the airport transportation in the country and dominate the market?

concentration and market diversification
Strategy 3: Country diversification and market concetration
Strategy

4: Country and market diversificaton

Q11:Which is the strategy most commonly used by US companies and why?