Advantages And Disadvantages Of Global Market Entry Strategy

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GLobal market entry strategies
- Exporting as an entry strategy - Indirect exporting - Direct exporting

- Foriegn production as an entry strategy - Licensing - Franchising - Local manufacturing

- Ownership Strategies - Wholly owned subsidiaries - Joint ventures - Strategic alliances

Entering markets through mergers and acquisitions

Exportng as entry strategy

What is global marketing

Global Marketing comprises of following marketing activities by firms

Standardizing marketing programs: Allowing marketing efforts to effortlessly operate across country borders. Standardization ensures products, promotions, price and channel structure cooperate together to increase
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Licenses are signed for a different time periods. Licensing agreements are subject to negotiation and they vary from company to company and from industry to industry. A major disadvantage of licensing is the company’s dependence on the local licensee to generate revenues and, thus, royalties, usually paid as a percentage on sales volume only. Another disadvantage is the resulting uncertainty of product quality.
Franchising - Its a special form of licensing in which the franchiser makes a total marketing program available, including the brand name, logo, products, and method of operation.
Many companies find it to their advantage to manufacture locally instead of supplying the particular market with products made elsewhere. Numerous factors such as laws, political considerations,local costs,tariifs and market size may affect a choice to manufacture locally, so it requires fair amount of attention before making a final decision. The local production may be contract manufacturing, assembly, or fully integrated
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