Strategies - Entry into Markets

Question 1

Three strategies for global market entry are:

I C D

Answer 1

1. Importing, exporting and trade between countries
2. Contracts - licenses, franchising, strategic alliances, joint ventures
3. Develop strategies and operations in other countries - eg outsourcing, offshoring, subsidiaries, foreign direct investment

Question 2

STRATEGY ONE

I E

Answer 2

IMPORT/EXPORT
-Trade agreements.

Question 3

STRATEGY TWO

C

Answer 3

CONTRACT AGREEMENTS
-Licensing.
- International agents/distributors.
- Strategic alliances/joint ventures.

Question 4

STRATEGY THREE

O

Answer 4

OPERATIONS IN OTHER COUNTRIES
- Overseas manufactures.
- Outsourcing.
- Offshoring.
- Subsidiaries.

Question 5

Expansion strategies

Answer 5

Niche Market
R and D
innovation

Question 6

Explain the differences between vertical growth and horizontal growth?

Answer 6

Vertical growth focuses on existing customers.
Horizontal growth is when a business increases or expands its geographical reach