Is the
channel which your organization employs to gain entry to a new international
market. This lesson considers a number of key alternatives, but recognizes that
alternatives are many and diverse. Here you will be consider modes of entry
into international markets such as the
Internet, Exporting, Licensing, International Agents, International
Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and
International Sales Subsidiaries. Finally
we consider the Stages of Internationalization.
Direct and indirect approaches to exporting to other
nations. Direct exporting is straightforward. Essentially the organization
makes a commitment to market overseas on its own behalf. This gives it greater
control over its brand and operations overseas, over an above indirect exporting.
On the other hand, if you were to employ a home country agency to get your
product into an overseas market then you would be exporting indirectly.
Licensing is when an organization authorizes another firm in
the host country to manufacture and sell its products. Licensing includes
franchising, Turnkey contracts and contract manufacturing.
