Modes of Entry

• Modes of Entry


  • Importing and exporting
  • International agents and distributors
  • Licensing
  • Strategic alliances and joint ventures
  • Overseas manufacturing (offshoring/outsourcing)
  • Sales subsidiaries
• Importing and Exporting


  The process of extending a business's operations or presence into international markets, allowing for increased reach and potential growth opportunities."
• International Agents


  Representation of the supplier, takes orders from the customer and delivers goods/services directly to the customers.
• Distributor


  Buys the product and sells it in the country.
• Licencing


  Business in one country allows another country to us IP (intellectual property).e.g. Franchising is a form of licences. Parent company of McDonalds is located elsewhere but have licencing in another country to operate parenting company.
• Type of licencing (exclusive/non-exclusive)

  Exclusive Licence - Restricted to certain product or geographical area.Non-exclusive Licence - Not restricted to certain products or geographical areas
• Strategic Alliances


  A long-term partnership between two or more companies established to help each company build competitive market advantages.
• Joint Ventures


  Two or more companies get together and partner with each other to start a new business. A (good workforce) + B (good technology) = Business C
• Overseas Manufacturing


  The production of goods in a foreign country by a company based elsewhere, often chosen for cost efficiency or market access
• Outsourcing


  The practice of contracting out specific business functions or tasks to external third-party providers, whether domestically or internationally, to improve efficiency or focus on core competencies.
• Offshoring


  The relocation of business processes, services, or operations to a foreign country, often seeking cost savings or strategic advantages
• Sales Subsidiaries


  Selling products using owned subsidiary companies. e.g. Nike