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 two equity based modes of entry
There are two kinds of international entry modes: equity and non-equity. The equity modes category includes: joint ventures (JVs) and wholly owned subsidiaries (WOSs).
WOSs further include Greenfield investment and acquisitions. The non-equity modes category includes export and contractual agreements.
What is a growth strategy
A growth strategy is an organization’s plan for overcoming current and future challenges to realize its goals for expansion.
Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving the organization’s products or services.
What is the riskiest growth strategy
Diversification is the riskiest strategy. It involves the marketing, by the company, of completely new products and services on a completely unknown market.
What are equity modes of entry
The equity modes of entry into a foreign market include both direct investment in facilities in the overseas location, as well as joint ventures with companies in the same industry with a base in the target market.
Which one of the following modes of entry requires higher level of risks
Joint venture requires higher level of risks.
What are the 6 modes of entry?
- Direct Exporting
- Licensing and Franchising
- Joint Ventures
- Strategic Acquisitions
- Foreign Direct Investment
Is an entry mode through which a firm invests directly in another country or market by establishing a new wholly owned subsidiary
A greenfield venture is an entry mode through which a firm invests directly in another country or market by establishing a new wholly owned subsidiary.
What are the different types of licensing?
- Patent Licensing
- Trademark Licensing
- Copyright Licensing
- Trade Secret Licensing
- Exclusive
- Non-exclusive
- Sole
- Perpetual
Why would a company choose to use a contractual mode of entry rather than an investment mode
Contractual forms of entry (i.e., licensing and franchising) have lower up-front costs than investment modes do.
It’s also easier for the company to extricate itself from the situation if the results aren’t favorable.
How do you leverage a product?
- Take Advantage of Existing Channels
- Product/Channel Fit
- Three Steps to Achieve Product/Channel Fit
- Use Case Frequency
- Identify New Growth Channels
- Find Your Growth Opportunity
- One Question to Help Narrow Your Focus
- Video and Slides
What are the 5 stages of growth?
- traditional society
- preconditions for change
- take-off
- drive to maturity
- mass consumption
What is joint venture entry mode
Joint Venture Creating a third company with another partner is often the preferred market entry method, especially in emerging markets.
A joint venture means that the company can take advantage of the partner’s infrastructure, local knowledge and reputation.
How do you know if you are ready to enter into international trade?
- Product viability
- Company performance
- Human resources
- Financial resources
- Production resources
- Logistics resources
What is non equity entry mode
INTRODUCTION. Non-equity modes, defined as modes that do not entail equity investment by a foreign entrant, are becoming increasingly popular among service firms for organizing overseas ventures/operations.
What is an example of licensing
Examples of license agreements, include: Example: Walt Disney granting McDonalds a license for McDonalds to co-brand McDonalds Happy Meals with a Disney trademarked character.
The license of a technology where the licensee is granted the right to use the licensor’s software, or other intellectual property asset.
What is scale of entry
Scale of entry – amount of resources committed to entering a foreign market.
Why entry mode is important
The choice of entry mode is an important strategic decision for SMEs as it involves committing resources in different target markets with different levels of risk, control, and profit return.
How is entry mode determined
A company must properly evaluate country risk before deciding on an entry mode. This would include an evaluation of political, economic and market related risks as well as exchange rate risk.
What are the 3 P’s of licensing
A. The 3 P’s of collegiate licensing are protection, promotion, and profit.
What do you mean by mode of entry
Modes of entry into an international market are the channels which your organization employs to gain entry to a new international market.
What are hierarchical modes
The hierarchical mode defines another form of progressive transmission where the image is decomposed into a pyramidal structure of increasing resolution.
The top-most layer in the pyramid represents the image at the lowest resolution, and the base of the pyramid represents the image at full resolution.
Citations
https://www.workspace.co.uk/content-hub/business-insight/how-to-enter-a-foreign-market
https://ecommons.cornell.edu/bitstream/handle/1813/72256/Dev63_Choice.pdf?sequence=1
https://www.stetson.edu/law/academics/highered/home/media/2002/CollegiateTrademark.pdf
https://rgray.io/blog/top-10-methods-of-entering-a-new-market/
https://quizlet.com/de/272991810/entering-foreign-markets-flash-cards/
