International Expansion strategies

Corporate Level Strategies

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

International Expansion

Export

• Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. It’s a low-cost, low-risk option compared to the other strategies.

Imports

• Importing is the flipside of exporting. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.

LicensingLicensing is another way to enter a foreign market with a limited degree of risk. Under international Licensing, a firm in one country permits a firm in another country to use its intellectual property( Patents, trade marks etc).

Example of Licensing

• Examples of licenses

include a company using

the design of a popular

character, e.g. Mickey

Mouse, on their

products.

FranchisingFranchising is a business model in which many different owners share a single brand name. A parent company allows entrepreneurs to use the company's strategies and trademarks; in exchange, the franchisee pays an initial fee and royalties based on revenues.

Example of Franchise

• Examples of franchises

include McDonalds,

Subway, 7-11 and Dunkin

Donuts.

Joint Ventures

An equity joint venture is

a contractual, strategic

partnership between two

or more separate

business entities to

pursue a business

opportunity together.

Example of Joint Ventures

Sony-Ericsson is a joint

venture by the Japanese

consumer electronics

company Sony Corporation

and the Swedish

telecommunications

company Ericsson to make

mobile phones.