Presentation Of IE&M Giving knowledge On the Topic.

Providing Knowledge About Strategic Alliances.

1. PRESENTATION ON THE TOPIC – ENTRY STRATEGIES NAME – AYUSH TIWARI CLASS – MBA 2 ND YEAR R.NO – 220230004 SUBJECT – INTERNATIONAL ENVIRONMENT AND MANANGEMENT

2. INTRODUCTION Market entry strategies are methods companies use to plan, distribute and deliver goods to international markets. The cost and level of a company's control over distribution can vary depending on the strategy it chooses. Companies usually choose a strategy based on the type of product they sell, the value of the product and whether shipping it requires special handling procedures. Companies may also consider their current competition and consumer needs. To select an effective strategy, companies align their budgets with their product considerations, which often improves their chances of increasing revenue. The three primary factors that affect a company's choice of international market entry strategy are: Marketing:   Companies consider which countries contain their target market and how they would market their product to this segment. Sourcing:   Companies choose whether to produce the products, buy them or work with a manufacturer overseas. Control:   Companies decide whether to enter the market independently or partner with other businesses when presenting their products to international markets.

3. Why are market entry strategies important Market entry strategies are important because selling a product in an international market requires precise planning and maintenance processes. These strategies enable companies to stay organized before, during and after entering new markets. Since every company has its own goals for entering an international market, having the option to choose from various types of strategies can give a company the opportunity to find one that fits its needs.

4. Types of marketing entry strategies 1. Exporting Exporting involves marketing the products you produce in the countries in which you intend to sell them. Some companies use direct exporting, in which they sell the product they manufacture in international markets without third-party involvement. Companies that sell luxury products or have sold their goods in global markets in the past often choose this method. 2. Piggybacking I f your company has contacts who work for organizations that currently sell products overseas, you may want to consider piggybacking. This market entry strategy involves asking other businesses whether you can add your product to their overseas inventory. If your company and an international company agree to this arrangement, both parties share the profit for each sale. Your company can also manage the risk of selling overseas by allowing its partner to handle international marketing while your company focuses on domestic retail. .

5. 3. Countertrade Countertrade is a common form of indirect international marketing. Countertrading functions as a barter system in which companies trade each other's goods instead of offering their products for purchase. While legal, the system does not have specific legal regulations like other forms of market entry do. This means companies may solve problems like ensuring other companies understand the value of their products and attempting to acquire goods at a similar level of quality. Countertrading is a cost-effective choice for many businesses because the practice may exempt them from import quotas. 4. Licensing Licensing occurs when one company transfers the right to use or sell a product to another company. A company may choose this method if it has a product that's in demand and the company to which it plans to license the product has a large market. For example, a movie production company may sell a school supply company the right to use images of movie characters on backpacks, lunchboxes and notebooks.

6. 6. Company ownership If your company plans to sell a product internationally without managing the shipment and distribution of the goods you produce, you might consider purchasing an existing company in the country in which you want to do business. Owning a company established in your international market gives your organization credibility as a local business, which can help boost sales. Company ownership costs more than most market entry strategies, but it has the potential to lead to a high ROI. 7. Franchising A franchise is a chain retail company in which an individual or group buyer pays for the right to manage company branches on the company's behalf. Franchises occur most commonly in North America, but they exist globally and offer businesses the opportunity to expand overseas. Franchising typically requires strong brand recognition, as consumers in your target market should know what you offer and have a desire to purchase it. For well-known brands, franchising offers companies a way to earn a profit while taking an indirect management approach.

7. 8. Outsourcing Outsourcing involves hiring another company to manage certain aspects of business operations for your company. As a market entry strategy, it refers to making an agreement with another company to handle international product sales on your company's behalf. Companies that choose to outsource may relinquish a certain amount of control over the sale of their products, but they may justify this risk with the revenue they save on employment costs. 9. Greenfield investments Greenfield investments are complex market entry strategies that some companies choose to use. These investments involve buying the land and resources to build a facility internationally and hiring a staff to run it. Greenfield investments may subject a company to high risks and significant costs, but they can also help companies comply with government regulations in a new market. These investments typically benefit large, established organizations as opposed to new enterprises.

8. 10. Turnkey projects Turnkey projects apply specifically to companies that plan, develop and construct new buildings for their clients. The term "turnkey" refers to the idea that the client can simply turn a key in a lock and enter a fully operational facility. You might consider this market entry strategy if your clients comprise foreign government agencies. International financial agencies usually manage arrangements between companies and their overseas clients to ensure the companies provide high-quality service and the client pays the full amount due.

9. PRESENTATION ON THE TOPIC - STRATEGIC ALLIANCES NAME – AYUSH TIWARI CLASS – MBA 2 ND YEAR R.NO. – 220230004 SUBJECT – STRATEGIC MANAGEMENT

10. STRATEGIC ALLIANCES A strategic alliance is an agreement between two companies. Companies join in a strategic alliance to obtain a mutual benefit that helps both of their businesses. This may be a less complex arrangement if they're in a non-binding agreement. Although some companies may want to have a binding agreement to underline the proper terms and conditions of their business relationship. Companies can be part of a strategic alliance on a short- or long-term basis depending on the impact such an alliance has on their company.

11. Benefits of strategic alliances Earn new clients Joining a strategic alliance can lead your company to expand clientele if they earn a high return on investment. If both parties earn a high return on investment through the duration of the alliance, then the company you worked with can trust you to produce those results again. The company might sign you on as a client if they trust your expertise in a certain area. Expand business opportunities and revenue Agreeing to join a strategic alliance means that your business is open to working with companies outside of your geographic location. If you run an entertainment promotions business in Los Angeles, you may build a strategic alliance with a company in New York City to increase name recognition and provide a service that's beneficial to their company. Your company may help you partner with marketing guest appearances for talent on the West Coast and they can assist your company with media coordination and ticket sales for performances at venues in New York City.

12. Attain different sources of income Working with a strategic alliance aids you in improving the resources you have to scale your company and replenish the services you provide to your partner. For example, the company in your strategic alliance might provide graphic design services while your company specializes in copywriting services. If you work together on a client, you may split the profits with your partner based on the results of the client's campaign. Despite the profits earned from working with your partner, your company still makes an income from the payment of other clients who purchased services from your company. Limit risk Proceeding with a strategic alliance limits risk for your company because of the high-quality service delivered while working with another company. If companies join a strategic alliance and specialize in two areas of business, like marketing and public relations, they can create a final product that makes a positive impact on their target audience. The mutual return they get allows them to focus on how to grow their companies and the impact of their brands.

13. TYPES OF STRATEGIC ALLIANCES Joint venture:   A joint venture is a binding agreement where two parent companies create a new child company or a subsidiary. The two parent companies share equity and resources during the agreement. Profits mainly get split between the two companies, and they each have a distinct objective that drives their inspiration for proceeding with a joint venture. Equity strategic alliance:   An equity strategic alliance occurs when a company purchases equity in another company or if companies share equity purchases. Non-equity strategic alliance:   A non-equity strategic alliance is when an organization agrees to share resources with another company. Despite that they're informal alliance, they make up the majority of them.

14. How to start strategic alliances 1. Review potential partners Review potential partners to find who you want to join a strategic alliance with. Finding out who you want to work with shows the potential for which relationships can lead to the long-term sustainability of your company. Start by researching companies inside and outside your industry, including startup companies that may need help growing their businesses. 2. Contact the prospect Give potential prospects a call to gather their interest in joining a strategic alliance with your company. Contacting prospects present you the chance to explain this opportunity by describing why you think you're the right fit for an alliance and how it can help the future of each company. Study the industry they work in to see if you provide additional points that increase the urgency for them to work with your company.

15. 3. Speak with them in-person Speak with the prospect in person to get a better impression of their expectations for working together. The expectations you receive from the prospect underscore their commitment to the alliance and the actions they'll take to uphold it. Display the information you have from your research and allow them to give more detail and context about your perception of their company. Once you both discuss company information and expectations, schedule another in-person meeting in a different location to finalize the strategic alliance. 4. Outline certain opportunities Note the various ways you can work with the prospect after first meeting with them. Highlighting the different ways you can work with them denotes the interests and themes you both share. Write down the objectives and challenges you may face as an alliance so you can bring them up in the next meeting. An action plan over the next year is a foundation to help them understand the vision you have for both companies. 5. Determine revenue and profit goals Include profit and revenue goals in your notes to show how your alliance affects each company financially. These goals establish the amount of resources each company needs to have in order to meet its financial goals. Set minimum revenue and profit goals to show how successful you want the alliance to be in the first year.

16. 6. Create an agenda Designing an agenda supplies the company with a structure for the tactics that both companies must execute. Showcasing tactics communicates the amount of work each company needs to complete to meet their benchmarks. Note the location of where these actions take place and the people responsible for the execution of each tactic to hold each company accountable during the alliance. 7. Agree to an implementation plan Present the information in the above steps to the company in your second in-person meeting. The second in-person meeting grants you time to go over the strategy, implementation of tactics and opportunities for growth. Document feedback that they give you and make corrections regarding any gaps of information they tell you during the meeting. Find out which members you need to speak to about implementation if they agree to join your alliance. Speaking with the right contact people permits you to focus on executing the first step of the strategy.

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