7+Entry+ModesSt - Opportunity Matrix for Henkel in Asia...

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Opportunity Matrix for Henkel in Asia Pacific
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Market Entry Strategies n Selecting a target market 1. Select indicators and collect data 2. Determine importance of country indicators 3. Rate the countries on each indicator 4. Compute overall score for each country
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Indirect Exporting. + Low commitment of resources + Low risk   Lack of control  No learning about the market  Opportunity cost Direct Exporting.   Similar, but + Some control  Increasing demand on resources
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Licensing:  Licensor   offers some  proprietary assets (e.g. trademarks,  technological know-how, patents) to  licensee  for royalty fees.  Franchising:  Franchisor   offers the  franchisee  the right to use  trademarks, trade names, business  models , and know-how in a territory  for some time.
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Licensing and Franchising. + Little or no investment + Quick entry + Bridge import barriers    Control problems  Quality control  Risk of creating competitor Contract manufacturing (similar)  Diversion to gray or black markets
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