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Chapter 21 Team Work

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0% found this document useful (0 votes)
31 views16 pages

Chapter 21 Team Work

Uploaded by

DhivyaMartin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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DECIDING WHICH MARKETS

TO ENTER
VARIOUS APPROACHES TO
ENTER MARKET

aterfall approach(eg:BMW
Matsushita,GE)

prinkler
approach(eg:Microsoft)
CONTD….

Attractiveness influenced by
Product & geography

Income & population

Political climate
DEVELOPED VS DEVELOPING
MARKETS

arketing leaders rely on developing markets to


fuel their growth

eveloped nations contribute only 20%

0% of future population growth-occur in less


developed countries

argeting invisible customers(eg:fiat palio’s


‘third world car, grameen phone)
CONTD….

elling in developing areas-’business as usual’

easons
• Economic & cultural differences
• Local competition

High frequency stores’- tiny bodegas, stalls, kiosks, mom-and-pop stores.

maller packaging & lower sales price(eg:unilever’s rs 1 sachets, Coke 200 ml bottle)

BRICS’- 5 key emerging market areas


TOP GLOBAL FIRMS BASED
IN DEVELOPING MARKETS

merica Movil uawei Technologies

emex nfosys Technologies

hina Mobile
oc Holding

NOOC
enovo Group

mbraer
MC Norilsk Nickel

azprom
ahindra & Mahindra

aier
isense

Copyright © 2009 Dorling


Kindersley (India) Pvt. Ltd.

21-6
REGIONAL FREE TRADE ZONES

AFTA
• LDC
• NLDC(India, Pakistan,Srilanka)

uropean union
• 25 member countries
• ‘EURO’
• 454 million consumers accounting to 23% of worlds exports

AFTA
• US, Mexico, Canada
• 360 million people who produce & consume $ 6.7 trillion worth of goods & services
CONTD….

ercosur(Mercosul)
• Brazil, Argentina, Paraguay, Uruguay & Venuzuela
• Associate members: Bolivia, Chile, Peru, Equador & Columbia

PEC
• 21 countries+NAFTA+Japan+Chinapan-Pacific free trade area

SEAN
• Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia,
Myanmar,Phillipines,Singapore,Thailand & Vietnam
DESIRED COUNTRY
CHARACTERISTICS FOR MARKET ENTRY

ank high on market attractiveness

ank low in market risk

ossess a competitive advantage

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 21-9


Five Modes of Entry into Foreign
Markets

Indirect Direct Joint Direct


Licensing
exporting exporting ventures investment

Commitment, Risk, Control, Profit Potential

10
INDIRECT EXPORTING

omestic based export Merchants

omestic based export Agents

ooperative Organizations

xport Management Companies

ADVANTAGES:

ess investments

eller will make fewer mistakes.


DIRECT EXPORTING

omestic-based export department

verseas sales branch or subsidiary

raveling export sales representatives

oreign-based distributors or agents


REVA ELECTRIC CAR
GENERATES 70% OF ITS
REVENUE FROM EXPORTS
LICENSING
License issued on Manufacturing process, trademark, Patent,
trade secret or others of a fee or royalty
Advantage:
Low risk, Easy and fast entry
Disadvantages:
Low control, developing competitors
Types:
Management Contracts
Contract Manufacturing
Franchising
JOINT VENTURES
Joint ventures share ownership & control
Objectives: Market entry, risk/reward sharing, technology
sharing and Joint product development, and conforming to
government regulations
Advantages:
Financial, Physical & Management Support
Conflicts:
Investments on new Assets
Cultural clashes
Termination of relationship
DIRECT INVESTMENT
Direct ownership of foreign based assembly and manufacturing

Advantages:

Cost economies

Brand image

Develop relationships

Full control

Disadvantages

Huge investment & efforts

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