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Market Entry Strategy Options
|
Indirect exports |
Direct exports |
Foreign production | |||
| (Making it here and selling it there) |
(Making and selling there) |
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|
Domestic company |
Domestic company | ||||
| Intermediary | Either | Or | |||
|
e.g. domestic buying office, export house, export mgt co, piggybacking, trading co. |
e.g. e-commerce, direct sales force
|
||||
| Border | |||||
|
Foreign intermediary |
Foreign production |
||||
|
e.g. agent, distributor, company branch office, company sales and marketing subsidiary |
Without direct investment, or with lower levels of investment e.g. licensing, franchising, contract manufacture |
||||
|
With direct investment e.g. assembly, joint ventures, strategic alliances, mergers, acquisitions, ‘screwdriver’ operations, greenfield development |
|||||
|
Foreign customer |
Foreign customer |
Foreign customer |
|||
Notes:
1. Distinguish between customers and end users
2. Retailing could be either direct
export or foreign production, dependent on where the goods are produced.
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