What are the types of entry strategies?
Here are 10 market entry strategies you can use to sell your product internationally:
- Exporting. Exporting involves marketing the products you produce in the countries in which you intend to sell them.
- Piggybacking.
- Countertrade.
- Licensing.
- Joint ventures.
- Company ownership.
- Franchising.
- Outsourcing.
How do you develop a licensing strategy?
The Strategy of Licensing
- Determine the fit of the licensing strategy within the overall strategic direction of the company.
- Evaluate the multiple license options that exist for products today.
- Size your opportunities.
- Empathetically understand your potential licensees.
Why is licensing a popular strategy?
Licensing is a very attractive method for entering a target market if a company has valuable intellectual property. It involves minimal initial costs and provides companies with regular income from overseas.
What are the 5 global entry strategies?
Choosing a Global Entry Strategy
- Exporting. Exporting means sending goods produced in one country to sell them in another country.
- Licensing/Franchising. Holiday Inn, London.
- Joint Ventures. A joint venture is a partnership between a domestic and foreign firm.
- Direct Investment.
- U.S. Commercial Centers.
- Trade Intermediaries.
What is a license strategy?
Software licensing strategy involves the decision-making process and implementation of rules or policies for protecting the intellectual property of a software developer.
What is licensing in strategic management?
Licensing gives a licensee certain rights or resources to manufacture and/or market a certain product in a host country. Licensing. Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment.
Which entry mode is best?
Learning Objectives
| Type of Entry | Advantages |
|---|---|
| Exporting | Fast entry, low risk |
| Licensing and Franchising | Fast entry, low cost, low risk |
| Partnering and Strategic Alliance | Shared costs reduce investment needed, reduced risk, seen as local entity |
| Acquisition | Fast entry; known, established operations |
What are the advantages of using licensing as entry mode?
List of the Advantages of Licensing
- It creates an opportunity for passive income.
- It creates new business opportunities.
- It reduces risks for both parties.
- It creates an easier entry into foreign markets.
- It creates self-employment opportunities.
- It offers the freedom to develop a unique marketing approach.
What is the 1st step in the process of licensing?
Licensing Process
- STEP 1 – Identify Technologies.
- STEP 2 – Contact a Licensing & Patenting Manager.
- STEP 3 – Complete and Submit a License Application.
- STEP 4 – Review Model Agreement and Negotiate Terms.
- STEP 5 – Receive the Completed License Agreement.
What is a licensing strategy?