Indirect exporting - entry strategies - corporate management - Strategic Management - Manu Melwin Joy
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The document discusses indirect exporting as a market-entry strategy with low risk and control, where products are sold abroad by third parties. It outlines various methods of indirect exporting, such as domestic sales organizations, international trading companies, and export management companies. An example provided is American Dry Fruits from Mumbai, which expanded its product offerings internationally after establishing a domestic market.
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Indirect exporting - entry strategies - corporate management - Strategic Management - Manu Melwin Joy
- 1. Indirect exporting - Entry Strategies Corporate Management
- 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]
- 3. Entry Strategies • Market entry strategy is influenced by the firm and product characteristics and the domestic and international market characteristics.
- 4. Foreign Market Entry and Operations Strategies Exporting • Direct Exporting. • Indirect Exporting. Contractual Agreement • Licensing & Franchising. • Strategic Alliance. • Contract Manufacturing. Production facility in foreign market. • Assembly Operations. • Wholly owned manufacturing facility. • Joint Ventures. Mergers and Acquisitions
- 5. 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.
- 6. Indirect exporting 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
- 7. 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.
- 8. 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.