enough opportunity to justify local production. ‘Export development is associated to high levels of cooperation between exporters and importers, high levels of trust, and communication sufﬁciency.’(Rodriguez, Wize & Martinez 2013, p.1646)One of the advantages is that makes the company less dependent on sales in its home market and provides a wider range of goods and services In addition, the potential market is bigger by selling overseas. Foreign sales over the long term, it will increase overall profitability
In fact, licensing and franchising has a similarity, which is both of them offer company to earn monthly profits but obviously it still depended on how you managed and operated your business (Gerhardt, S, Hazen, S, Lewis, S & Hall, R 2015, p. 8). Licensing is like giving the rights to someone to produce a product or using its brand name, however, franchising is like open a branch by using its brand name or business model (William, C 2014). Actually the business which operated by licensing method usually
services has both advantages and disadvantages for countries involved in international trade. The advantages of exporting goods and services are having a greater degree of control over all aspects of the transaction (Williams,2010). Exporting allows a country's producers to increase proprietorship preferences and develop low-cost and differentiated products. It is reflecting as a low-risk mode of production and trade. Beside that, exporters also experience internationalization advantages which are the
share equally or have varying stakes. Furthermore, the partners can be silent or active and partner can be local or international. The benefit of joint venture is it helps company to avoid tariff and non-tariff. ADVANTAGES. However, joint venture also has disadvantages. The disadvantages of joint venture is companies have to share profits with their
effective advertising media used by Petronas is by television advertisements. Petronas ‘ television ads have always been unique and catchy. So, these creates many advantages for Petronas, the ability to build sale volume and, switching cost. Second, it helps to gain more companies or student to study in Petronas university. Advantage • on location desirability of host country production relative to home country
that are the automotive, connected objects and finally in the civil drones that is the one in which we will focus. MARKET ACCESS STRATEGY The parrot company should use international licensing of technology and intellectual property strategy to enter US markets. It can be done through a strategic alliance. Licensing is especially appealing to little and medium-size firms since it manages global extension while fundamentally restricting dangers.
another for future sale or trade. Advantage: it is good in general because it helps in increasing sales and profits by expanding into new market. It is the best strategy when the manufacturing firm wants to improve its profit. Disadvantage: extra high transport costs and tariffs are likely to be realized and since it requires transportation time, exporting is only for manufacturing firms so it is not a good choice or strategy for the restaurant that offers food. 2- Licensing: means to give permission for
It is significant to get a high market share as well as to expand the businesses. There are some categories of licensing like manufacturing licensing and marketing licensing. Franchising Franchising can be used to increase the market expansion. Strength of the brand name, brand awareness and competition are considered when selecting this strategy. Partnering This is an entry strategy which