BUSA 394 Lecture Notes - Lecture 10: Guanxi, Franchising, Dow Chemical Company
24 Jun 2019
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Busa 394 lecture 10 developing a business in asia. You have several factors that you may want to look at: Competitiveness of the industry in the country. Lower market vulnerability (less risk because you have a dispersion of your revenues) Extending the life of products (by introducing it in a new market where it can be an innovation) Enhanced competitiveness (how you can compete with much bigger and installed companies) Understanding differences in the economic, legal and political system. Increased demands on human, financial and operational resources. You have different ways of making it happen then: Licensing: giving someone else the rights to sell the products in that market. Franchising: you sell a business model like mcdonald"s. Joint ventures: you do a partnership with another company, that is usually in the country already. Wofe (wholly owned foreign enterprise) (fdi): acquisition or greenfield investment. Economic: exchange rate, economic crisis, higher competitiveness and lower costs in china.
