Entry Strategies Flashcards Preview

International Business > Entry Strategies > Flashcards

Flashcards in Entry Strategies Deck (9)
Loading flashcards...
1

Different Entry Strategies

External:
- Exports
- Turnkey Projects
- licensing
- franchising
- alliances
Internal:
- Joint Venture
- FDI

2

Export

Issues with exporting:
- vulnerable to tariffs
- side kick distance--> hard to get insights into foreign markets
- might be more expensive due to transport cost or tarifs

3

Turnkey Projects

Firm builds up production plant in foreign country and then gives it over to domestic owners
- minimal risk but also minimal potential for future profits

4

Licensing

- Right to intangible property such as:
- patents, inventions, formulas etc
- specified period of time
- specified compensation

5

Licensing vs franchising

License: Right to use or do something under legal framework (offer a service, method etc)
Franchise: Buying a business in a box, license is in the whole "box" already

6

alliances

international strategic alliances:
- cooperative agreements between competitiors from different countries

7

advantages first mover

- build a strong brand
-create high switching prices
---> creating standards
- elstablish important relationships

8

disadvantages first mover

- time to learn dos and donts
- high cost to built infrastructure
- high risk
- pioneering costs

9

what makes stron joint ventures?

1) shared vision of the future
2) complementary skillsets