International Market Entry Modes and Strategies
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Selecting and Managing Entry Modes
Foreign market entry options are categorized into three primary methods, each with distinct subtypes:
- Trade: Export, import, and countertrade.
- Contract: Licensing, franchising, management contracts, and turnkey projects.
- Investment: Wholly owned subsidiaries, joint ventures, and strategic alliances.
Exporting and Importing
These represent the most common methods of buying and selling internationally.
Developing an Export Strategy
- Identify potential markets.
- Match needs to organizational abilities.
- Initiate meetings.
- Commit necessary resources.
Direct vs. Indirect Exporting
- Direct Exporting (Selling to buyers): Utilizing sales representatives or distributors.
- Indirect Exporting (Selling to intermediaries): Utilizing agents,