Tải bản đầy đủ - 0 (trang)
External or “arms-length” Modes of Entry (Cont.)

External or “arms-length” Modes of Entry (Cont.)

Tải bản đầy đủ - 0trang

Slide

11-8



External or “arms-length” Modes

(cont.)

• Licensing

– Licensor grants rights to licensee for use of

intangible property over a specified period in return

for a fee

– Intangible property: patents, inventions, formulas,

processes, designs, copyrights, trademarks

– Licensing agreement likely allows licensor quality

assurance rights over actual use of intangible asset

– If licensee sells to consumers using the licensor’s

brand name, the license may also give the licensor

rights to strategic brand control

McGraw-Hill/Irwin



© 2004 The McGraw-Hill Companies, Inc., All Rights



Slide

11-9



External or “arms-length” Modes

(cont.)

• Franchising

– Franchisor, grants franchisee use of intangibles

under the condition that franchisee follow strict

rules of operating the business

– Mode of operation is part of the brand image

• International strategic alliances



McGraw-Hill/Irwin



© 2004 The McGraw-Hill Companies, Inc., All Rights



Slide

11-10



“Internal” Modes of Entry: FDI

• Wholly owned subsidiaries

– Firms owned 100% by a company in a foreign

country

• International joint ventures

– Firms that are owned jointly by two or more

otherwise independent firms; most IJVs are

between two firms

– One (or more) parent firms are non-resident in

the host market

– Ownership % may vary from majority foreign

owned, to 50%-50% owned, to minority owned

by the foreign firm

McGraw-Hill/Irwin



© 2004 The McGraw-Hill Companies, Inc., All Rights



Slide

11-11



Entry Mode

Advantage

Wholly

 Enables global strategic

owned

coordination

subsidiaries  Protects technology

 Realizes (potentially) location

and experience economies

International  Gives access to local partner's

Joint

knowledge

Ventures

 Allows sharing of development

costs and risks

 May be more politically

acceptable than 100% foreign

ownership

 Allows foreign parent do

deploy resources across more

national markets at once

International  Similar to international joint

Strategic

ventures

Alliances



McGraw-Hill/Irwin



Disadvantage

 High costs and risks

 Requires overseas

management skills

 May be slower to implement

 Loss of control over

technology and managerial

know-how

 May impede global

coordination

 May make realization of

location and experience

economies more difficult

 Sharing of profit "pie"

 May be more difficult to

manage than international

joint ventures



© 2004 The McGraw-Hill Companies, Inc., All Rights



Slide

11-12



Entry Mode

Advantage

Franchising  Low financial risk

 Relatively low

development costs

















Licensing



Exporting



 Similar to franchising

 Fewer "maintenance"

costs than franchising

 Ability to realize

experience curve

economies



McGraw-Hill/Irwin







Disadvantage

Lack of direct control over quality

Successful international franchising

requires considerable start-up and

ongoing presence overseas (cost)

Is likely to impede, make global

coordination costlier than ownership

Growth may be slower depending

on franchisee's intentions

Sharing of profit "pie"

Possible loss of know-how to

potential competitor

Similar to franchising



 Transport costs

 Trade barriers

 Motivation of local agents a

challenge



© 2004 The McGraw-Hill Companies, Inc., All Rights



Slide

6-15



Decision Framework for FDI

No



Are transportation costs

high?

Yes



No



Is know-how easy to

license?

Yes



Export



Yes



Yes

FDI

Yes



Is know-how valuable and

is protection possible?



FDI

No



McGraw-Hill/Irwin



No



FDI



Tight control over

foreign ops required?

No



Import

Barriers?



License



© 2004 The McGraw-Hill Companies, Inc., All Rights



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

External or “arms-length” Modes of Entry (Cont.)

Tải bản đầy đủ ngay(0 tr)

×