StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Strategies for analyzing and entering foreign markets - Essay Example

Cite this document
Summary
Licensing occurs when a firm, which also referred to as the licensor, leases to another firm, which it the licensee, the rights to use its products, patents, work method, intellectual property rights, trademarks, brand names and even copyrights. The license agreement can be…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Strategies for analyzing and entering foreign markets
Read Text Preview

Extract of sample "Strategies for analyzing and entering foreign markets"

Entering Foreign Markets Basic issues in International Licensing Licensing occurs when a firm, which also referred to as the licensor, leases to another firm, which it the licensee, the rights to use its products, patents, work method, intellectual property rights, trademarks, brand names and even copyrights. The license agreement can be issued by a company to another to market its products or even utilize its technology by paying some royalty or fee. There is a license involved, which is a legal document that gives permission to the licensee.

Licenser is the official who has the mandate to issue a license. Advantages of International LicensingInternational licensing results to instant and guaranteed revenue for the company that is licensing. There is also an advantage of the promotion of brand recognition of the licensing company.DisadvantagesInternational licensing results in competition between the licensor and the licensee. Again, international licensing leads to loss of company confidentiality in its ways of operation. Basic issues in International FranchisingInternational franchising is the strategy that gives the opportunity to an independent entrepreneur to operate a business under the name of another established brand name.

International franchising helps businesses to expand into foreign markets using a franchise agreement. AdvantagesWhen franchises are expanded internationally, it opens new opportunities to new markets that the business could not have reached. International Franchising also allows businesses to take advantage of favorable government regulations in various countries. This helps to save money through the paid taxes. DisadvantagesThere are cultural differences that exist in various countries that might go a long way in killing the business in these countries.

There is also financial risks involved when trying to expand the business into other countries. How firms analyze foreign marketsIn analyzing foreign markets, firms first critically need to choose well the foreign market in which it would want to venture in. This would involve the analysis of the potential success of the business products in that market (Adam, 2001). The firm then requires gathering enough information to use in the analysis process. The information may include the knowledge about domestic government agencies, private agencies in that country as well as other private sources.

In the analysis, it is also important for the firm to assess the possible risks in the foreign market.Firms choose their modes of entry into a foreign market through identification of the market, collection of information about the market, risk assessment, securing capital and space to carry out the business.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strategies for analyzing and entering foreign markets Essay”, n.d.)
Strategies for analyzing and entering foreign markets Essay. Retrieved from https://studentshare.org/management/1673053-strategies-for-analyzing-and-entering-foreign-markets
(Strategies for Analyzing and Entering Foreign Markets Essay)
Strategies for Analyzing and Entering Foreign Markets Essay. https://studentshare.org/management/1673053-strategies-for-analyzing-and-entering-foreign-markets.
“Strategies for Analyzing and Entering Foreign Markets Essay”, n.d. https://studentshare.org/management/1673053-strategies-for-analyzing-and-entering-foreign-markets.
  • Cited: 0 times

CHECK THESE SAMPLES OF Strategies for analyzing and entering foreign markets

Multi-national organization that is an ideal candidate for acquisition

The Strategy of International Business" and "entering foreign markets" Name) (University) (Course) (Tutor) (Date) Multinational organization Since my company deals with pharmaceuticals, there is room for it to grow as it has a patent to produce and sell the patented drug for 10-15 years.... hellip; It is as a result of this that it required to expand into a foreign country.... According to Miller, Vandome and John (2010) have reported that the company has furthered its growth in the foreign market and has branches in Sweden, United States, UK and other 100 countries....
4 Pages (1000 words) Research Paper

Foreign Market Entry and Diversification

XYZ should consider while deciding to diversify in foreign markets.... It is based on these inferences that the company should decide upon reforming its marketing strategies and making requisite changes in its product line or targeted customer segment, when entering foreign market (Czinkota, & Ronkainen, 2009).... Additionally, it has also been viewed that the company faces the challenges of narrow market segmentation, wherein almost all the markets of its home country have been already penetrated by the company....
4 Pages (1000 words) Assignment

The four basic management strategies to compete internationally

The globe presents a plethora of new markets with a host of unmet needs and demands and hence implying a host of opportunities.... Globalizing an organization's operations can be generalized by saying that an organization seeks to enter new markets.... Yet entering new markets means committing the limited resources required to produce a targeted return on the investment which could have been put to other marketing decisions each having their own return on investments, or we may also say that globalization has its opportunity cost....
8 Pages (2000 words) Essay

International Market Entry and Development

The only difference is that domestic researchers have to research those markets which are homogenous whereas international researchers have to These diverse markets differ with the local ones in terms of the needs of customers, their buying patterns, the cultures and traditions followed by the customers etc.... With the increase in globalization, companies have to sell products not only in their domestic countries but also in international countries and markets....
5 Pages (1250 words) Essay

Joint Venture over Licensing as a Foreign Market Entry Mode

Internationalization of businesses has become a common phenomenon of the modern… Thus, this discussion seeks to analyze licensing and joint venture as modes of entry into foreign markets, though assessing the merits and limitations associated with each Licensing refers to a method of foreign market entry strategy, where an organization in one country offers rights to another company in a host country to undertake operations under its brand name through, an international licensing agreement (Hitt, 2009:27)....
5 Pages (1250 words) Essay

Boots entering china analysis

Competitive strategy: techniques for analyzing industries and competitors.... It makes use BOOTS ENTERING CHINA ANALYSIS al Affiliation) Boots as a company uses different strategies that ensure its pharmaceutical products gain new markets.... It makes use of market development to enable its pharmaceutical products to gain markets in new geographical locations.... The strategy is unique as it seeks to target new markets (Bradford & Lawrence, 2004)....
2 Pages (500 words) Research Paper

International Expansion and Outward Investment

It will be vital to mention in this regard that in order to ensure better business performance along with ensuring long-term sustainability, business units posses the need to expand their operations on a continuous basis in emerging markets with effective internationalisation of business.... The growth of any business unit in the present business environment is largely dependent on how it captures more markets with its operations and the same can only be happen with promoting internationalisation of business (Alon & et....
16 Pages (4000 words) Essay

International Business Strategic Plan Memo

Exporting: It is one of the most widely used strategies in which companies only sell their products in the foreign markets.... It includes most of the common methods of entering a foreign market.... On the other hand, indirect exporting involves a foreign purchaser and/or an export management organization (Hisrich, p.... Licensing: Licensing essentially authorizes an organization in the target nation (foreign market) by using the properties of a licensor....
4 Pages (1000 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us