EXECUTIVE SUMMARY
• This is a study that shows the various entry and expansion strategies that are available for a firm when choosing to go global or increase market share within the market.
• There are various strategies found out , they are : Exporting and importing , Joint Ventures, Strategic Alliances, Franchising , Licensing and Foreign branching.
• In exporting and importing, firms choose between direct involvement and indirect involvement. This is the level of involvement with the foreign customers. Most firms prefer direct involvement due to the costs and risk of having an intermediary do the communicating in the foreign market.
• Types of international intermediaries are export management companies and trading companies such as the
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• When a firm decides to do international business it faces a lot of decisions. The most basic is making the decision that entering international markets are in the best interest of the company.
• There are various criteria used when choosing an international market to enter, they are: proximity, stage of development, geographic region, language , government policies and laws , competitive situation and many other factors.
• There are various international entry and expansion strategies they are: exporting, importing, licensing, franchising, inter-firm cooperation and foreign direct investment (FDI).
EXPORTING AND IMPORTING
• (Czinkota, Ronkainen, Moffett, Marinova, & Marinov, 2005) explains that firms can choose to be involved in exporting and importing in either a direct way or indirect way. Direct involvement is where a corporation directly works with the foreign customers or markets with the opportunity to develop a relationship.
• Indirect involvement is where an international firm uses an intermediary to get into the market and there is no contact between the foreign firm and the local customers (Czinkota, Ronkainen, Moffett, Marinova, & Marinov,
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The biggest difference between the two is that the multinational business has an equity and management position in the foreign firm this is in the joint venture kisses. A partnership between host- and home-country firms is formed, usually resulting in the creation of a third firm.
• The joint venture agreement allows the company more control when it comes to operations and the firm has more access to information on local market.
• The joint venture agreement is very much preferred because it allows the firm to avoid control problems that are associated of the other types of entry strategies. The host firm helps the multinational firm settle in the new environment. (Kiling, 1982).
• This agreement has is usually between two or more parties with shared interests in a project, thee parties are usually equally invested when it comes to time effort to innovate and the most obvious. Joint ventures can be used for small projects and ensure that they are successful but big corporations also use this form of agreement to be more
Roots Canada In the watchful eyes of both the co-founders Michael Budman and Don Green quality, integrity and longevity became the three pillars of Roots Canada. A well known Canadian company, Roots developed from making footwear then evolved to create authentic leather bags, accessories, jackets, natural fiber clothing and home furnishings. Roots exemplifies a unique look identical with a informal, athletic, hip and outdoor lifestyle stimulated by the enthusiasm shared by both Don and Michael for Ontario’s Algonquin Park. Its apt for people of all ages, the vast range of Roots branded merchandise well reputed its grand design, excellent materials, better comfort and stability.
The information in this documentation is NCF Medical LLC’s strategic plan. A strategic plan is a record that explains an organizations goal, the actions in need to accomplish these goals, and other important components that develop throughout planning (Balanced Scorecard Institute, 1998-2013). The strategic plan includes the organization's vision, mission, people strategies, and values statements. The plan includes sources to perform an external and an internal environmental analysis. In addition, key success factors, budget, financial forecasting, a risk management plan is part of NCF Medicals strategic plan.
For instance, they should not use their bargaining power to unfairly reduce reimbursement rates or limit the number of providers available to patients. Joint ventures refer to collaborations between two or more companies to undertake a specific business project or activity. Joint ventures can provide benefits such as increased efficiency and reduced costs, but they must also comply with antitrust laws to prevent anti-competitive behavior. In the healthcare context, joint ventures must not create a monopoly or unfairly limit
Tim Horton Finding the Right Market India, Turkey and North Cyprus Okeke Hycient Chidozie 7088610 MKT 8030 Carole Terentiak January 25, 2015 Introduction Tim Horton, Tim Horton is Canada’s largest café restaurant franchise and it is located in almost every territory in Canada. Tim Horton’s now has 4,485 restaurants, including 3,588 in Canada, 859 in the United States and 38 in the Gulf Cooperation Council, which it entered in 2011 (Shaw, 2015). Tim Horton is a legacy company which was founded by Miles Gilbert an ice hockey legend. Tim Horton is well known for its spending coffee and amazing rich donuts. Target market
CASE STUDY: You are the marketing manager for a chain of home-ware stores in Brisbane called Houzit. The marketing plan for the 15 Houzit stores was developed over 12 months ago and you are actively engaged in implementing the strategies to achieve the marketing objectives. Specifically, you are instigating those marketing activities that meet the marketing objectives of a 12% market share (up from 11%) and an increase in sales by 8.5% over last year’s result. No expansion stores are planned during this phase of consolidation and on average the stores achieved $24,680 per week for the year.
Today we live in a glоbal econоmy in which the time taken for peоple to mоve between continents has been significantly rеduced and in which Internet and other connections make instant connections possible. So to be succеssful these days, even small businesses must plan their marketing strategies to attract cоnsumer interest outside of their local markets. Although there are risks involved, there also are plenty of аdvantages to expanding a business worldwide. If you don’t offer a product on the world market, a competitor probably will. Some types of businesses are more аppropriate than others for global market expаnsion.
For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
There are different ways to enter the foreign market (except the direct and indirect export of the goods): wholly owned subsidiaries, merger & acquisitions, joint ventures, franchising/licensing agreements and minority investments. After determining the entry mode the company will choose the market and evaluate it to find the best way to enter it. The different forms of market entry strategies have advantages and disadvantages. Standardization of market operations and processes are more different if a company chooses merger & acquisitions and joint ventures, because first the partnerships need to be harmonization. These partnerships are valuable because of the partner’s knowledge about the local market.
In 1974, Delhaize took its first step of internationalization by entering the US market. He progressively acquired market shares in US and continued its internationalization process by entering Southeastern Europe in the early 1990s, and the Indonesian market in 1997. In this section we will try to understand the pressures that pushed Delhaize to internationalize. George Yip provides a framework to analyze the “globalization drivers” that are most likely to influence a company’s decisions to expend its business internationally. The four drivers of internationalization that he identified are: market drivers, cost drivers, government drivers and competitive drivers.
In the Present situation IN the present situation the strategy of expansions is very important as world economy tends to globalize and nowadays, multinational companies like Nike which can hardly locate production in one country only but
Firstly, by doing export process sales for that country will increase. Exporting process is a one way to expand business and increase company sales potential. It can help expand product or services that the company earn money form, otherwise the company stuck trying to make a money only in the local market. As example ‘The Tarik’, the Tarik one of the famous beverages in Malaysia but people from other country can get it at their own country. In this case we can see that globalization give an idea for local business to expands and sell the product to other country by doing export process and its became well known for a few country which Singapore, Indonesia, Europe and
nternational marketing in export and franchising Objectives International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. • To bring countries closer for trading purpose and to encourage large scale free trade among the countries of the world. • To bring integration of economies of different countries and there by to facilitate the process of globalization of trade. • To establish trade relations among the nations and thereby to maintain cordial relations among nations for maintaining world peace. • To facilitates and encourage social and cultural exchange among different countries of the world.
Due to different country’s policy, different business model are required for IKEA to run their business. For examples, IKEA will need to implement joint ventures as their business model to become successful in the Indian and China marketplace. Since the government for these countries requires that local business operations own about 51% control by Indian nationals, IKEA 's should find the right partner for its own. There are some advantages and disadvantages for IKEA to implement Joint venture as their business model. For the advantages are provide an opportunity to IKEA to access to the new markets and distribution networks, increased capacity to expand their business in foreign market, IKEA can share the risks and costs together with their partners and it will help IKEA to access to local resources, including specialised staff, technology and finance aspect.
What is normally suggested is that if a firm is producing, manufacturing or reselling goods that they usually export since it is the easiest and least risky method. The risk that occurs if this type of strategy is used is that the firm depends on the company that will be exporting to and their customers in order for their product to be known. Yet other strategies include a joint-venture, licensing and franchising, foreign direct investment, and strategic alliances which even though they have more risk than just exporting they are more likely to be used than full ownership. These strategies give the firm the opportunity to still have some control, at different levels, of how the product will be managed in the foreign country. An example of this is Kia Motors direct investment in Slovakia in 2004 or Volkswagen’s joint-venture with Skoda for a period of time in 1991.
(Fan, Y. 2006) 2.0 Critical analysis of the internalization strategies engaged by the company 2.1 Identification of current internalization pattern 2.1.1 Foreign direct investment The current internalization pattern that Lenovo has been used is the foreign direct investment which take the form of merger and