Advantages and Disadvantages First method includes: 1)Direct Export – the organization produces their product in their home market and then sells them to customers overseas 2)Indirect Export – the organizations sells their product to a third party who then sells it on within the foreign market Another less risky market entry method is licensing.
Here the Licensor will grant an organization in the foreign market a license to produce the product, use the brand name etc in return that they will receive a royalty payment. ( ex. Coca-Cola) Franchising Franchising is another form of licensing. Here the organisation puts together a package of the ‘successful’ ingredients that made them a success in their home market and then franchise this package to oversea investors. The Franchise holder may help out by providing training and marketing the services or product.
McDonalds is a popular example of a Franchising option for expanding in international markets. Manufacturing Abroad The ultimate decision to sell abroad is the decision to establish a manufacturing plant in the host country. The government of the host country may give the organization some form of tax advantage because they wish to attract inward investment to help create employment for their economy. Joint Venture is a cooperation of foreign and local investors of the capital in order to create a local business that they own and manage jointly.
The Term Paper on Skin Care Market Product Products
L'Oreal Introduction L'Oreal is the largest cosmetics company in the world. It shouldn't be a surprise that L'Oreal doesn't sell all of its product lines in every market in which it sells, and the market in the Netherlands is no exception. Upper management of the Netherlands' L'Oreal subsidiary have to make decisions on which product lines will succeed in their respective market and which ones ...
Subsidiary is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary’s stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a government or state-owned enterprise. The controlling entity is called its parent company, parent, or holding company. And the end I would like to focus your attention on the chart. You can see advantages and disadvantages of each method. Thank you for attention, if you have questions, you are welcome.
