Direct exporting - Entry StrategiesCorporate Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Entry Strategies

• Market entry strategy is influenced by the firm and product characteristics and the domestic and international market characteristics.

Foreign Market Entry and Operations Strategies

Exporting

• Direct Exporting.

• Indirect Exporting.

Contractual Agreement

• Licensing & Franchising.

• Strategic Alliance.

• Contract Manufacturing.

Production facility in foreign

market.• Assembly Operations.• Wholly owned

manufacturing facility.• Joint Ventures.

Mergers and Acquisitions

Direct exporting

In direct exporting, the firm becomes directly involved in marketing its products in foreign markets, because the firm itself performs the export task (rather than delegating it to others).

Direct exporting

To implement a direct

exporting strategy, the firm

must have representation in

the foreign markets.

Direct exportingThis can be achieved in a number of ways: – Sending international sales

representatives into the foreign market.

– Selecting local representatives or agents to prospect the market.

– Using independent local distributors who will buy the products to resell them in the local market.

– Creating a fully owned commercial subsidiary to have a greater control over foreign operations.