1. INTERNATIONAL MARKET ENTRY STRATEGIESReasons for organizations to enter International MarketsImprove Bottom- l ineImprove Market shareLeverage Excess Capacitieswww.Raysim.com

2. INTERNATIONAL MARKET ENTRY STRATEGIESReasons for organizations to enter International MarketsRisk MitigationExpor t CompulsionResidual Incomewww.Raysim.com 3. Expor tsINTERNATIONAL MARKET ENTRY STRATEGIESGoods/Services Shipped outsidethe physical borders of the countryEarns Forexwww.Raysim.com 4. INTERNATIONAL MARKET ENTRY STRATEGIESExportsDirect Indirectwww.Raysim.com 5. INTERNATIONAL MARKET ENTRY STRATEGIESDirect Expor tsBenefits Direct Contact with Buyer. Direct Access to markets. Risk mitigation- (Markets) Earns Forexwww.Raysim.com 6. INTERNATIONAL MARKET ENTRY STRATEGIESIndirect Expor tsReasons Risk Mitigation- (Payment) Lack of Knowledge & Experience. Production Focus. High Domestic Demand.www.Raysim.com 7. INTERNATIONAL MARKET ENTRY STRATEGIESLicencingBenefits to l icensor Residual income Leverage their brand name &experience with that product/servicewww.Raysim.com 8. INTERNATIONAL MARKET ENTRY STRATEGIESLicencingBenefits to Licensee Easy market entry. Low resistance from the market intermediaries & customers. Amor tization of large volumes & higher capacity uti l ization.www.Raysim.com 9. INTERNATIONAL MARKET ENTRY STRATEGIESFranchisingBenefits to franchisor -No inventory at retai l or manufacturing level. -No investment in retai l or manufacturing. -No Hiring for running the business at manufacturing or retai llevel. -Get % of royalties.www.Raysim.com 10. INTERNATIONAL MARKET ENTRY STRATEGIESFranchisingBenefits to Franchisees Proven systems, & business model . Establ ished brand name. Authorised suppliers. Buying power. Easy exit.www.Raysim.com 11. INTERNATIONAL MARKET ENTRY STRATEGIESContract ManufacturingBenefits to Company No investment in land, bui lding and machinery. No hiring of labour. No day to day involvement in running of the business.www.Raysim.com 12. INTERNATIONAL MARKET ENTRY STRATEGIESContract ManufacturingBenefits to contractor Can plan & expect stable income during the contract period. Optimum use of existing resources. Focused on manufacturing, cl ient gets the business orders.www.Raysim.com 13. INTERNATIONAL MARKET ENTRY STRATEGIESWhol ly Owned SubsidaryBenefits Company is in ful l control Manages day to day operations Get the first hand informationwww.Raysim.com 14. INTERNATIONAL MARKET ENTRY STRATEGIESWhol ly Owned SubsidaryDisadvantages Needs huge capital investment. Exit can be cumbersome. Comply with country al l laws & regulations.www.Raysim.com 15. INTERNATIONAL MARKET ENTRY STRATEGIESJoint VentureBenefits Leverage each other resources. Risk Mitigation in case of fai lure.www.Raysim.com 16. INTERNATIONAL MARKET ENTRY STRATEGIESJoint VentureDisadvantages Merger of two dif ferent company cultures. Need commitment from both companies.www.Raysim.com 17. INTERNATIONAL MARKET ENTRY STRATEGIESConclusionWhich Strategy to fol low - Ask yourselfDid you conduct SWOT analysis ?Did you do market Research ?Do you have a sound wellinformed business plan ?www.Raysim.com 18. INTERNATIONAL MARKET ENTRY STRATEGIESwww.Raysim.com