Export international expansion strategies - corporate level strategies - Strategic management - Manu Melwin Joy
- 1. Export - International Expansion strategies Corporate Level Strategies
- 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – [email protected]
- 4. Export • Exporting is defined as the sale of products and services in foreign countries that are sourced or made in the home country.
- 5. Export • Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market.
- 6. Export • It’s a low-cost, low-risk option compared to the other strategies. These same reasons make exporting a good strategy for small and midsize companies that can’t or won’t make significant financial investment in the international market.
- 7. Direct exporting In direct exporting, the firm becomes directly involved in marketing its products in foreign markets, because the firm itself performs the export task (rather than delegating it to others).
- 8. Direct exporting To implement a direct exporting strategy, the firm must have representation in the foreign markets. This can be achieved in a number of ways: – Sending international sales representatives into the foreign market. – Selecting local representatives or agents to prospect the market. – Using independent local distributors who will buy the products to resell them in the local market. – Creating a fully owned commercial subsidiary to have a greater control over foreign operations.
- 9. Indirect exporting The market-entry technique that offers the lowest level of risk and the least market control is indirect export, in which products are carried abroad by others. The firm is not engaging in international marketing and no special activity is carried on within the firm; the sale is handled like domestic sales
- 10. Indirect exporting There are several different methods of indirect exporting: – The simplest method is to deal with foreign sales through the domestic sales organisation. – A second form of indirect exporting is the use of international trading companies with local offices all over the world. – A third form of indirect exporting is the export management company located in the same country as the producing firm and which plays the role of an export department.
- 11. Example The mumbai based American Dry Fruits (ADF) which began selling a range of packaged foods liked Chutneys, Spices, Canned vegetables, ready to eat dals, etc under different brand names later moved to other countries with large Indian population.