INTRODUCTION TO GSP Trade barriers are falling around the world Companies need to have a strategy to enter world markets Global strategic planning is a process adopted by organizations that operate internationally in order to formulate an effective global strategy 3 PONZ - DO NEEDED
EXPORTING Indirect Exporting Export merchants Export agents Export management companies (EMC) Cooperative Exporting Piggyback Exporting Direct Exporting Firms set up their own exporting departments 4 PONZ - DO NEEDED
LICENSING & FRANCHISING Licensor and the licensee Franchisor and the franchisee Franchising – Improved licensing 5 PONZ - DO NEEDED
FOREIGN DIRECT INVESTMENT A direct investment into production or business in a country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country Mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans. 6 PONZ - DO NEEDED
CONTRACT MANUFACTURING Benefits : Labor cost advantages Savings via taxation, lower energy costs, raw materials, and overheads Lower political and economic risk Quicker access to markets 7 PONZ - DO NEEDED
JOINT VENTURE & STRATEGIC ALLIANCE Joint Venture When two companies invest funds into creating a third, jointly owned company , that new subsidiary Strategic Alliances When companies want to quickly gain a new area of expertise or access to new technology or markets, buy a smaller company with those assets form a strategic alliance with another company that would benefit equally from the partnership. 8 PONZ - DO NEEDED
CONCLUSION Exporting Licensing & Franchising Contract Manufacturing Joint Venture & Strategic Alliance Foreign Direct Investment BE INDIAN., MAKE INDIA GROW., 9 PONZ - DO NEEDED