Week 8 International Marketing, Market Entry And Expansions

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Week 8 International marketing, market entry and expansions * Already chosen the country * Risk factors have been assessed * External macro environment * Politics, ecological, social logical * How risky in terms of currency * In terms of government compensation
Recap
Why a company should do business internationally * External * Competition less competition in another country * Converging consumer needs * Regional integration, trading blocks, trading in the same regions – neighbours / similar traits – characteristics * Economic – currency exchange, political – tax laws - compensations, social, technological reasons * Government, taxes * Cost of Resources in that country cheaper minimise cost maximise profits * Population expansion smaller population other country such as china has a bigger population * Internal * Human resources, Skills, trained, capabilities, * Operation cost (cheaper to manufacture) * Growth of market share
Innovation, coming up with a brand new invention, modifying
Product line extension cost a lot of money 1. Export * Indirect
Least risk, easy, no worries, find professionals * Direct
No agent, find your own market, new to business 2. Licensing (Products) * Licensor
Issues license * Licensee
Pays royalties 3. Franchising (Food)
Same as Licensor/see

Downsides * Quality * Create their own competitors * Risk in reputation

4. Ownership * J.V. * Strategic alliance *

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