Entry Strategies For International Business

Module - 2

Modes of International Business

Merchandize Exports & Imports Service Exports & Imports

Transport & Tourism, Performance Services, Use of Assets

Investments
Direct Investments, Portfolio Investments

Ansoff Matrix for Entry Decisions

Market Entry Strategies

Competitive Advantage Matrix

Matrix Structure for Market Entry

The International Market Entry Evaluation Process

1.

2.
3. 4. 5.

Country Identification Preliminary Screening In-Depth Screening Final Selection Direct Experience

International Market Entry Arrangements

Exports & Imports Non Collaborative Arrangements Collaborative Arrangements

International Market Entry Arrangements

Why Exporting may not be the best Option?

Cheaper to Produce Abroad Transportation Costs Lack of Domestic Capacity Need to Alter Products & Services Trade Restrictions Country of Origin Effects

International Market Entry Arrangements

Non Collaborative Arrangements

Investments in equity market (FII) Full Foreign Direct Investment ( 100% FDI) Exporting Directly to the customer Mergers & Acquisitions
Equity Arrangements Non Equity Arrangements

Collaborative Arrangements

International Market Entry : Collaborative Arrangements (Partnerships)

Equity Arrangements

Partly Owned with Remainder widely held Joint Ventures Equity Alliances
Licensing & Technology Transfers Franchising Management Contracts Turnkey Operations

Non Equity Arrangements

Problems in Collaborative Arrangements

Importance of Collaboration to the partners Differing Objectives Control Problems Partners Contributions and Appropriations Differences in Culture

End of the Module 2

Thank you