Some fundamental Entry Strategies of Global Marketing are categorised below:
1. Using Trade Intermediaries: Using trade intermediaries is another strategy which provides access global markets at low risks and lesser costs., These intermediaries are local agencies which offer trade facilities for all local businesses irrespective of their size. They act as distributors who market the products of local businesses, all over the world Trade intermediaries have intense network of bal contacts and intense knowledge of local markets. They also possess good experience in international de and act as export departments for various small and local firms. Hence, the products of a local siness can reach into international markets through trade intermediaries at lower costs and the firms i concentrate on other important functions.
2. Creating an Existence on Internet: This strategy encompasses online mode of internationalising a siness. It can be done by creating an existence on the Internet in the fastest and lowest cost. A business easily sell its products in the global markets through a website. Similarly, customers find it easy to rchase products from a well-managed website. The products offered on the Internet are available 24×7, the customers can buy them anytime at their convenience. Hence, creating a business website is an imate tool, especially for the small businesses seeking growth where it can gain similar significance as at of fax machine and telephone. For example a local bakery can gain access to international markets by its presence on the Internet.
3. Franchising: Local businesses can use international franchising for accessing global market. owner (franchiser) of a brand name, patent, copyright, trademark, business operation property, process, system grants legal rights to other business (franchisee) to use that property, process or system for oduction of goods an services, in return for a fee, it is known as franchising. The local business can act a franchisor by distributing its franchises to small foreign businesses and thus, can sell its products in eign markets, it will also be beneficial in building foreign market coverage and building brand name in ernational markets.
4. Exporting: Exporting is another strategy for entering into a foreign market. Domestic anufacture their products in their local production units and can export them into various international arkets. Thus, they can obtain economies of scale by locally manufacturing different product and selling em across the boundaries of the nation. Usually, there are two forms of exporting: are two forms of exporting:
(a) Indirect Exporting: When products of the local businesses are indirectly sold to potential foreign through local export intermediaries, it is known as indirect exporting. In this form of exporting, product are first sold to intermediaries who further sell them directly to foreign wholesalers or customer. It offers convenience and low costs to local businesses as they do incur any expense in the process of overseas distribution and logistics, identification of poter foreign markets, etc.
(b) Direct Exporting: When products of domestic firms are directly exported and sold to potem foreign customers, it is known as direct exporting. In this form of exporting, business commitm is essential for being directly liable and accountable to manage market research, logis shipments, overseas distribution, and collection of payments.
5. Licensing: Licensing agreement the is the most common mode adopted by an organisation as it redu risk of internationalising. The agreement is due for renewal after five to seven years on the cons of parties attached to it. There are basically two parties in a licensing agreement, i.e., the licensor and licensee. Licensee is the firm to which the licensor gives authority to use few of its technology, tradema patents, etc., in lieu of a monetary consideration often called royalty or fee.
6.Management Contracts: Local businesses, which lack in technology and managerial skills, can e into an agreement with a foreign business for seeking managerial assistance, specialised guidance technical expertise for a specified period of time in return for a fee or a financial reward. This agreemer known as a management contract, and is very useful for a local business to enter into foreign markets. W the acquired management expertise and know-how, a local business thus can sell its products in glo markets.
7.Joint Ventures: When two or more independent businesses are cooperatively joined togethe form a new business identity, it is known as a joint venture. A local business can form a joint venture v foreign businesses and can easily enter into new foreign markets. Even if one organisation has acquire low stake in another organisation, they are entitled to the right to have, a say in management activitie the newly formed venture. It will also be beneficial in the cases, where foreign government policies laws do not allow foreign control but promote joint ventures and local companies.
8. Contract Manufacturing: Under contract manufacturing, one organisation (client) enters int contract with another organisation to manufacture its products or parts. The organisation (client) in way does not have to arrange for production infrastructure, workforce, raw materials, etc., and can fo entirely on sales and marketing of products. A local producer can be brought into agreement for a f looking to sell its products in overseas market. Many of the world’s leading organisations carry on th manufacturing processes through third party manufactures in countries having low cost of labour. advantages include less capital investment and ease of exit in case of product failure.
9. Strategic Alliances: A strategic alliance occurs when two or more organisations enter into a contr come together to perform a specific function and achieve mutually set objectives organisations do not in the market. Th merge and remain anonymous. Recently, strategic alliances have become popular. are proven as an effective reans to tackle weaknesses and enhance strengths. The main objectives beh setting-up a strategic alliance are market expansion, capital enhancement, access to latest technology, etc.
10. Turnkey Projects: As the name suggest turnkey project is when a licensor builds a completely n plant or production infrastructure which is fully operational, and hand over the key to the licensee. As licensee receives the keys of a fully functional plant, he can start its operations. A turnkey project is a fo of projet which is constructed and sold to anonymous purchasers as a finished product. These projects common in international business. Turnkey projects are mostly applicable in constructions of plants, su as steel factories, oil refineries, cement and fertilisers plants, etc.