2    Cases:
   Whirlpool:  Phillips wholly owned appliance subidiary:
               bright-colored refrigerators in Bangkok since often put in living rooms
   Kentucky Fried Chicken:  Sought by Mitsubishi Keiretsu, joint venture
   Use of excess chicken capacity, blessing of stores, scale-down, commuter traffic
   Domino's: a good choice of trading partner, licensee for Japan
               why 30 minutes?
   Client X, visiting Chinese market, ????, has a good product, unmet need
               identified

3    Methods of Market Entry - chart

4    Production at Home or Overseas:
   Decision Criteria
   Take a checklist approach:  costs and benefits
  Multiple market entry methods are common

5    Goals regarding business:
   Depth of market entry: country, region, area, multinational mkt.
   Time span:  are we in for the long term?
   Level of commitment:  build business or sell excess capacity?
   Amount of feedback: how much needed
   Level of control vs. level of representation

6    Size of Company
   Capital available
   Skills to build what new market needs
   Capital to build what new market needs

7    Product lines
   Special needs for production in new market?
   Raw materials? local skills?
   Adaptations?
   Shipping and transportation realities
   Tariff and nontariff costs:
                  - Cif and price escalation
                  - Classification
                  - Pricing (Export Documentation Handbook)

8    Corporate culture and personnel
   Experience in global markets
   Match of corporate cultures?
    Personnel strengths and skills
   Commitment from Home Office
   Adaptability of business to new market- e.g. longer planning horizons

9    Competitive Environment
   Competition
   Cooperative Opportunities:
   Similar companies
   Venture partners

10   Plus???
   What forms of business are required by law?
   Investment Requirements? by gov.? by multinational group?
   Documentation (workshop)
   What forms of business lessen our vulnerability? What might a govt want?
               increase employment, sell local materials
   Political risk:  level of takeovers of businesses

11   Indirect Exporting
   Trading companies: sell similar goods, even those of competitors, vs. local
               knowledge and wide coverage, local reputation, less risk vs. less control
   EMCs:  like your own mktg dept overseas, your reputation:  your letterhead
               and name, establishes an identity, may face barriers if unknown, local
               knowledge, more control
   Cooperative methods
                  - Webb-Pomerenes:  economies of scale, commodities, lower costs, research
                  - ETCs:  export arm of several manufacturers
                  - Piggyback:  combine your products with those of other co.'s to complete your line

12   Direct  Exporting
   Choice of export markets:
                  - Usually planned, controlled growth
                  - Often by region or country grouping
                  - Documentation (Export Documentation Handbook - terminology)
   Foreign Distributors
                  - Local knowledge and relationships
                  - Check out reputation! Reliability!
   Agents
   Overseas Marketing Subsidiaries

13   Foreign Production
   Reasons:  requirement, lower costs, lower vulnerability, local adaptation,
               costs too much to transport, breakable if transport, dangerous to transport
   Contract Mfr.: find a plant to produce for you
   Licensing:  buy rights to your product, name, production method, adv., etc.
                  - Control of quality?
                  - Create a competitor?
   Assembly: parts are shipped, "CKD", mixing
   Joint Venture: shared equity
   100 Percent Ownership

 

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