Session 4: Internationalization strategies Flashcards
Process of internationalization
- Uppsala model
- Network internationalization
- Stages models of internationalization.
Uppsala model
Uppsala model is a model of internationalization processes focusing on learning processes.
Network internationalization
Over time, firms in a network reinforce each others’ internationalization processes, thus the expertise in a firm’s network grows both with new members joining, and with existing members gaining more experience.
Stages models of internationalization.
internationalisation seen as a slow stage-by-stage process an SME goes through.
Internationalization strategies
- Sprinkler Strategie
- Waterfall Strategie
Gründe für die Expansion in andere Länder sind:
- The institutional environment of the home country
- Institutional distance between the home and host countries
Non-equity (indirect) entry modes
Firms can act as sellers or buyers or both. In international trade, the sellers are known as exporters, and the buyers as importers.
Intermediaries
- Direct exports
- Indirect exports
- Intermediaries
- Local sales agents receive a commission on sales
- Distributors trade on their own account;
International contracts
- Licensing z.B. Microsoft
- Franchising z.B. McDonald
Franchising Advantages
Advantages Franchisor:
- Venture can expand quickly using little capital
- Business can be expanded nationally and even internationally
Advantages Franchisee:
- Product acceptance: Has an accepted name, product, or service
- Knowledge of the market: Offers experience in business and market
Franchising Disadvantages
Disadvantages Franchisor:
- Difficulty in finding quality franchisees
- The franchisor does not have tight control over production and marketing, and thus how their technology and brand names are used
Disadvantages Franchisee:
- Die Unfähigkeit des Franchisegebers service, Dienstleistungen, Werbung und Standort zu bieten
Turnkey project:
A project in which clients pay contractors to design and construct new facilities and train personnel.
Design and build (DB) contract:
A contract combining the architectural or design work with the actual construction.
Build–operate–transfer (BOT):
A contract combining the construction and temporary operation of a project eventually to be transferred to a new owner.
Consortium:
A project based temporary business owned and managed jointly by several firms.
