INTL-BUS-3780 Lecture Notes - Lecture 10: Market Entry Strategy, Contract Manufacturer, Legal Personality
Document Summary
Foreign sales subsidiary have a person there (in the country you are selling to) Why export: market too small for local production, economies of scale increases production numbers, high marginal profitability, less risk, less commitment, less control. It"s out of your control: uncertainty of product quality, creating potential competition, fees generally lower than potential profits. 200 franchisors in the us were located outside of the us; that. You combine the proven methods of the franchisor with the entrepreneurial spirit & local knowledge of the franchisee. Take it out, reinvest, what: lack of communication pretty much all of these problems result from bad/lack of communication. There are many more alternatives to entering the market than above! Greater control and greater risk = direct foreign investment; less control and less risk = internet
