Chapter 9 Powerpoint

Chapter 9 Powerpoint - Chapter 9 Global Market Entry...

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Unformatted text preview: Chapter 9 Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances 29-2 Introduction Trade barriers are falling around the world Companies need to have a strategy to enter world markets Starbucks has used direct ownership, licensing, and franchising for shops In 2006, Starbucks had 12,000 cafes in 35 countries and sales of $7.7 billion. 39-3 Introduction 49-4 Which Strategy Should Be Used? It depends on Vision Attitude toward risk Available investment capital How much control is desired 59-5 Licensing A contractual agreement whereby one company (the licensor) makes an asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation Patent Trade secret Brand name 69-6 Advantages to Licensing Provides additional profitability with little initial investment Provides method of circumventing tariffs, quotas, and other export barriers Attractive ROI Low costs to implement 79-7 Disadvantages to Licensing Limited participation Returns may be lost Lack of control Licensee may become competitor Licensee may exploit company resources 89-8 Special Licensing Arrangements Contract manufacturing Company provides technical specifications to a subcontractor or local manufacturer Allows company to specialize in product design while contractors accept responsibility for manufacturing facilities Franchising Contract between a parent companyfranchisor and a franchisee that allows the franchisee to operate a business developed by the franchisor in return for a fee and 99-9 Worldwide Franchise Activity See Table 9-1 109-10...
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This note was uploaded on 06/12/2011 for the course MKTG 475 taught by Professor Field during the Spring '11 term at Nicholls State.

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Chapter 9 Powerpoint - Chapter 9 Global Market Entry...

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