various modes of entries in international market.pptx

How to entry into new markets

1. Various modes of entry in International market Name of Group Member Sakshi Mishra Mansi Patel Bansari Soni Abhay Patel Ankit Patel

2. Introduction to Selling Products Internationally Expanding a business into new countries can be a complicated but exciting journey. This presentation will explore different strategies and ways companies can successfully enter and succeed in foreign markets.

3. Modes of International Market Entry 1 Exporting Directly selling products or services to customers in other countries. 2 Licensing Granting the right to use intellectual property in exchange for royalties. 3 Joint Ventures Partnering with a local company to share resources and risks. 4 Franchising Allowing individuals or companies to operate a business using your brand and business model. 5 Management Contract Contracting with a local company to manage operations and provide expertise.

4. Flowchart of International Market Entry Modes Exporting A low-risk, capital-efficient way to reach new markets. Licensing Allows rapid expansion with limited investment, but less control. Joint Ventures Combines local knowledge and resources for mutual benefit. Foreign Direct Investment Grants full control but requires significant capital investment. Franchising Allows individuals or companies to operate a business using your brand and business model. Management Contract Contracting with a local company to manage operations and provide expertise.

5. Direct Exporting Direct exporting means selling products or services directly to customers in other countries. This helps companies control their supply chain and pricing, but requires navigating customs, tariffs, and transportation logistics. Example: Direct Exporting ABC Company sells high-quality furniture directly to retailers in various countries. They manage shipping logistics and work with international distributors to expand their market and control pricing.

6. Indirect Exporting Indirect exporting means selling things to people in other countries, but not doing everything yourself. Instead, you work with other companies who help you sell your things in different countries. These companies are called intermediaries. Example: Indirect Exporting XYZ Company works with an export agent who helps them sell their products in other countries. The agent does things like marketing and sales, while XYZ makes the products. This way, XYZ doesn't have to worry about all the details of selling things in another country .

7. Licensing Licensing is when a company allows another company in a different country to use their ideas or technology in exchange for money. This helps the company enter new markets quickly without spending too much money. However, the company that gives the license has less control over how things are done.

8. Joint Ventures Shared Resources Joint ventures combine the strengths, knowledge, and resources of both partners to tackle new markets. Shared Risks The risks and investments are shared, allowing companies to enter markets they may not have the resources to access alone. Local Expertise The local partner provides invaluable insights and connections to navigate the target market successfully.

9. Foreign Direct Investment Foreign direct investment (FDI) involves establishing a physical presence in the target market, such as building a manufacturing facility or opening a subsidiary. This strategy provides the highest level of control and flexibility, but requires significant capital investment and resources to manage the overseas operations.

10. Case Study: Successful Market Entry in Asia 1 Market Research Conducted extensive analysis of consumer trends, competitive landscape, and regulatory environment in target Asian markets. 2 Joint Venture Partnered with a well-established local company to leverage their distribution network and brand recognition. 3 Localization Adapted products and marketing strategies to align with local preferences and cultural norms.

11. Conclusion and Key Takeaways 1 Evaluate Entry Modes Carefully consider the risks, resources, and control requirements to select the optimal market entry strategy. 2 Leverage Partnerships Collaborating with local partners can provide valuable insights and capabilities to navigate new markets. 3 Prioritize Adaptability Be prepared to adjust strategies and tactics to address evolving market conditions and customer preferences. Successful international expansion requires thorough planning, strategic execution, and the ability to adapt to local market dynamics. By understanding the various entry modes and tailoring the approach to your specific business goals, you can position your company for long-term growth and success in global markets.