What are the major ways of entering a foreign market

What are the major

Ways of entering

A foreign market ?

By Mausumi Mohanta

Company decides

To go

Global

The various ways

to enter

the global market arena

Indirect Export

Indirect Export

– through intermediate intermediaries

• Domestic-based export merchants

• Domestic-based export agents

• Cooperative organizations

• Export management companies

Indirect Export

Has Two Advantages :

• Less investment

- no export Dept.

- no overseas sales force

• Less risk

-International intermediaries handle

the know-how and services

Direct Export

Direct Export

– Handle own exports

• Domestic-based export division

• Overseas sales subsidiary

• Travelling export sales experts

• Foreign based distributers

Licensing

What is Licensing ?

Licensor issues a license to a foreign

company to use a manufacturing

process, patent, trademark, trade

secret for a fee or royalty.

Joint Ventures

Joint ventures

Foreign investors join local investors

in a joint venture company in which

they share ownership and control

Direct Investment

Large market – distinct advantages

Direct Investment

• Secures cost economies

• Strengthens image in foreign country

• Deepens its relationship with local

stakeholders

• Retains full control over its investment

• Assures itself of access to the market