1、Global MarketingGlobal MarketingGlobal Market Entry Strategies:Licensing,Investment and Strategic AlliancesChapter 99-1Learning ObjectivesLicensing and forms of foreign investmentsGlobal strategic partnershipsAsian cooperativesVirtual corporationMarket expansion strategiesIn 2012,Starbucks had 18,00
2、0 cafes in 62 countries and sales of$13.3 billion.Its goal is to reach 40,000 units worldwide.9-2Investment Cost of Marketing Entry Strategies9-3Which Strategy Should Be Used?It depends on:Vision Attitude toward risk Available investment capital How much control is desired9-4Licensing A contractual
3、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 Product formulations9-5Advantages to Licensing Provides additional profitability with little in
4、itial investment Provides method of circumventing tariffs,quotas,and other export barriers Attractive ROI Low costs to implement License agreements should have cross-technology agreements to share developments and create competitive advantage for each party9-6Disadvantages to Licensing Limited parti
5、cipation Returns may be lost Lack of control Licensee may become competitor Licensee may exploit company resources9-7Special Licensing Arrangements Contract manufacturing Company provides technical specifications to a subcontractor or local manufacturer Allows company to specialize in product design
6、 while contractors accept responsibility for manufacturing facilities Franchising Contract between a parent company-franchisor and a franchisee that allows the franchisee to operate a business developed by the franchisor in return for a fee and adherence to franchise-wide policies9-8Franchising Ques
7、tions Will local consumers buy your product?How tough is the local competition?Does the government respect trademark and franchiser rights?Can your profits be easily repatriated?Can you buy all the supplies you need locally?Is commercial space available and are rents affordable?Are your local partne
8、rs financially sound and do they understand the basics of franchising?9-9Investment Partial or full ownership of operations outside of home country Foreign Direct Investment(FDI)Forms Joint ventures Minority or majority equity stakes Outright acquisitionIKEA spent$2 billion to enter Russia.9-10Joint
9、 Ventures Entry strategy for a single target country in which the partners share ownership of a newly-created business entity Builds upon each partners strengths Examples:Budweiser and Kirin(Japan),GM and Toyota,GM and Daewoo in S.Korea,Ford and Mazda,Chrysler and BMW9-11Joint Ventures Advantages Al
10、lows for risk sharingfinancial and political Provides opportunity to learn new environment Provides opportunity to achieve synergy by combining strengths of partners May be the only way to enter market given barriers to entryDisadvantagesRequires more investment than a licensing agreementMust share
11、rewards as well as risksRequires strong coordinationPotential for conflict among partnersPartner may become a competitor9-12Investment viaDirect Foreign Investment Start-up of new operations Greenfield operations or Greenfield investment Merger with an existing enterprise Acquisition of an existing
12、enterprise Examples:Volkswagen,70%stake in Skoda Motors,Czech Republic(equity),Honda,$550 million auto assembly plant in Indiana(new operations)9-13Examples of Market Entry&Expansion by Joint Venture9-14Examples of Equity Stake9-15Global Strategic Partnerships Possible terms:Collaborative agreements
13、 Strategic alliances Strategic international alliances Global strategic partnershipsThe Star Alliance is a GSP made up of six airlines.9-16The Nature of Global Strategic Partnerships9-17The Nature of Global Strategic Partnerships Participants remain independent following formation of the alliance Pa
14、rticipants share benefits of alliance as well as control over performance of assigned tasks Participants make ongoing contributions in technology,products,and other key strategic areas9-18Five Attributes of True Global Strategic Partnerships Two or more companies develop a joint long-term strategy R
15、elationship is reciprocal Partners vision and efforts are global Relationship is organized along horizontal lines(not vertical)When competing in markets not covered by alliance,participants retain national and ideological identities9-19Success Factors of Alliances Mission:Successful GSPs create win-
16、win situations,where participants pursue objectives on the basis of mutual need or advantage.Strategy:A company may establish separate GSPs with different partners;strategy must be thought out up front to avoid conflicts.Governance:Discussion and consensus must be the norms.Partners must be viewed a
17、s equals.9-20Success Factors(Cont)Culture:Personal chemistry is important,as is the successful development of a shared set of values.Organization:Innovative structures and designs may be needed to offset the complexity of multi-country management.Management:Potentially divisive issues must be identi
18、fied in advance and clear,unitary lines of authority established that will result in commitment by all partners.9-21Examples of Global Strategic Alliances9-22Alliances with Asian Competitors Four common problem areas Each partner had a different dream Each must contribute to the alliance and each mu
19、st depend on the other to a degree that justifies the alliance Differences in management philosophy,expectations,and approaches No corporate memory9-23Cooperative Alliance in Japan:Keiretsu Inter-business alliance or enterprise groups in which business families join together to fight for market shar
20、e Often cemented by bank ownership of large blocks of stock and by cross-ownership of stock between a company and its buyers and non-financial suppliers Keiretsu executives can legally sit on each others boards,share information,and coordinate prices9-24Horizontal Keiretsu Big Six:Mitsui,Mitsubishi,
21、Sumitomo,Fuyo,Sanwa,DKB Groups Horizontal keiretsu:intragroup relationships involve shared stock holdings and trading relations Large,powerful with revenues in hundreds of billions Can block foreign suppliers causing higher prices Promotes corporate stability,risk sharing,long-term employment9-25Ker
22、etsui Vertical keretsui:Hierarchical alliances between manufacturers and retailers Matshusita sells its products through its chain of National stores;50-80%of products are Matshusita brands Panasonic,Technics,and Quasar Manufacturing keretsui:vertical hierarchical alliances between automakers suppli
23、ers,and component manufacturers9-26Cooperative Strategies in South Korea:Chaebol Composed of dozens of companies,centered around a bank or holding company,and dominated by a founding family Samsung LG Hyundai Daewoo9-2721st Century Cooperative Strategies:Targeting the Digital Future Alliances betwee
24、n companies in several industries that are undergoing transformation and convergence Computers Communications Consumer electronics Entertainment9-28Beyond Strategic Alliances Semantech:Consortium of 14 tech companies tasked with saving the U.S.chip-making industry Relationship enterprise:groupings o
25、f firms from different industries and countries with common goals and act as one entity Next stage of evolution of the strategic alliance Super-alliance Virtual corporation9-29Market Expansion Strategies Companies must decide to expand by:Seeking new markets in existing countries Seeking new country markets for already identified and served market segments9-30Looking Ahead to Chapter 10 The Global Marketing MixProduct and Brand Decisions9-31
