Apple globalization & global strategic planning assignment apple globalization & global strategic planning assignment help: an international strategy is a strategy through which the firm sells its goods and services outside its domestic market market entry mode: licensing, exporting and importing strategies are preferred by apple inc as. Franchising is similar to licensing except that the franchising organisation tends to be more directly involved in the development and control of the marketing programme the franchising system can be defined as a system in which semi-independent business owners. Franchising is a type of licensing agreement where packages of services are offered by the franchiser to the franchisee in return for a payment the two types of franchising are product and trade name franchising, and business format franchising. Market entry modes for international businesses 145 market entry modes for international businesses table 72 strategic determinants of entry mode choice entry modes indirect direct licensing joint wholly- export export and/or venture owned exporter’s situation franchising subsidiary subsidiary strategic immediate profit intent learn the.
Market entry strategies: licensing, investment, and strategic alliances global marketing chapter 9 9-1 • companies need to have a strategy to enter world markets • starbucks has used direct ownership, licensing, and franchising for shops and products 9-2 in 2006, starbucks had 12,000 cafes in 35 glo marketing 9pptx. Licensing an international entry mode involving the granting of permission by the licenser to the licensee to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions and franchising are two specialized modes of entry that are discussed in more detail in chapter 9 exporting, importing, and global. Suitable entry mode strategy is joint venture, the most significant factor influencing the entry mode decision is the legal framework, and the largest problem experienced by companies investing in the country is bureaucracy. Disney's mode of entry in japan had been licensing however, the firm chose direct investment in its european theme park, owning 49% with the remaining 51% held publicly besides the mode of entry, another important element in disney's decision was exactly where in europe to locate.
A master franchise agreement includes the franchisee's right to sub-franchise in effect, the master franchisee becomes the franchisor for their chosen territory. Market entry modes for international businesses 137 a foreign agent acting on behalf of the exporter and its name, a foreign distributor acting on its own account and on its own behalf, its own. Keywords: entry mode, cultural distance, cultural dimensions, fdi, export modes, wholly owned subsidiaries, license/franchise agreements and contractual agreements entry modes and cultural distance 3. Entry modes –franchising- (september 20th) 1 concepts franchising: it is a specialized form of licensing in which the franchisor nor only sells an independent franchisee the use of the intangible property (usually a trademark) essential to the franchisee’ business but also operationally assists the business on a continuing basis, such as. Foreign market entry options include exporting, joint ventures, foreign direct investment, franchising, licensing, and various other forms of strategic alliance of these potential entry models, licensing is relatively low risk in terms of time, resources, and capital requirements.
Franchise and business opportunity laws and how they may affect the growth strategy sought to be employed by the business owner the following is a general description of the various growth strategies, including the. Advantages and disadvantages of licensing as a mode of entry into foreign markets 1882 words | 8 pages the merits and demerits of international licensing as a mode of entry into new markets” disney does not have to produce t-shirts, usb sticks and even waffles with mickey mouse’s happy face on it. Although it is impossible to state which entry mode strategy is the best, by the end of this lesson you should be able to describe the conditions that make exporting, licensing, franchising, strategic alliances and wholly owned subsidiaries more attractive entry mode options.
Foreign market entry modes or participation strategies differ in the degree of risk they present, the control and commitment of resources they require, and the return on investment they promise  there are two major types of market entry modes: equity and non-equity modes. In contractual entry mode, technological collaboration agreements are made with the business units of host nation in this mode, technical skills/managerial skills are provided licensing/franchising 3 contract manufacturing 4 management contract 5 assembly operations foreign market entry strategies/ strategies of globalisation. Entry strategies of foreign firms: the case of carrefour in saudi arabia executive summary there are a number of entry modes available to companies such as exporting through direct or indirect channels, licensing and franchising, foreign direct investment (acquisitions and mergers, joint ventures, strategic alliances etc. In this study, international entry mode choice is examined in a franchise setting as in the traditional entry mode and international franchising literatures, it is suggested that both organizational and environmental determinants influence the franchisor’s choice of entry mode (direct franchising.
Licensing is a low cost of entry mode and may lead to possible further direct investment with licensees down the line a relatively safe and low risk way to test the market before significant capital investment. These clustered market entry modes have different characteristics in terms of control, risk involved, resource commitment, flexibility and ownership, which form as advantages and disadvantages for choosing entry modes shown in table 1 (appendix1 ) (paliwoda and ryans 1995. The most obvious drawback of franchising and licensing is that revenues are likely to be significantly lower than other market entry methods, as well as a possible lack of control over production and marketing. The choice of mode of entry into foreign markets includes: exporting countertrade contract manufacturing licensing franchising management service contracts turnkey projects non-equity strategic alliances equity-based joint ventures wholly-owned subsidiaries the entry mode choices can be classified in various ways.