Free Stuff Essay

Submitted By ElevenXIStudy
Words: 312
Pages: 2

Week 8 International marketing, market entry and expansions
* Already chosen the country
* Risk factors have been assessed
* External macro environment
* Politics, ecological, social logical
* How risky in terms of currency
* In terms of government compensation
Recap
Why a company should do business internationally
* External
* Competition less competition in another country
* Converging consumer needs
* Regional integration, trading blocks, trading in the same regions – neighbours / similar traits – characteristics
* Economic – currency exchange, political – tax laws - compensations, social, technological reasons
* Government, taxes
* Cost of Resources in that country cheaper minimise cost maximise profits
* Population expansion smaller population other country such as china has a bigger population
* Internal
* Human resources, Skills, trained, capabilities,
* Operation cost (cheaper to manufacture)
* Growth of market share
Innovation, coming up with a brand new invention, modifying
Product line extension cost a lot of money
1. Export
* Indirect
Least risk, easy, no worries, find professionals
* Direct
No agent, find your own market, new to business
2. Licensing (Products)
* Licensor
Issues license
* Licensee
Pays royalties
3. Franchising (Food)
Same as Licensor/see

Downsides
* Quality
* Create their own competitors
* Risk in reputation

4. Ownership
* J.V.
* Strategic alliance
*