1、Chapter 10Strategy for entering international marketThe relationship between operational strategy and core ideas of an organization 企业经营的核心理念是卓越企业的保护神，卓越企业需要的思想和理念 eg:(1)Disneyland (2)Wal-mart (3)Merck Question:如何理解“卓越是一种成功的平凡,优秀仅是平凡的成功”？一.Strategic factors1.Concept of strategy Strategythe direction
2、 and scope of an organization in the long term,is to achieve competitive advantage for the organization through the configuration of its internal resources in the changing environment and to meet the needs of markets and organization owners -Johnson&Scholes2.Strategic factorsA.Appraising products in
3、 foreign markets through analyzing and culling B defining objectives in target market establishing standards and analyzing environmental factorsC.Choosing the modes of entry there are four modesD.formulating marketing planE.implementing and controlling to modify the deviation between performance and
4、 objectives二.Modes of entering foreign marketModes of entering foreign market refers to the systematic plan of product,technology,know-how and other resources.In foreign market,a firm may carry out different modes of entryCase study 1:Starbucks coffee(1)在全球普遍推行三种商业组织结构：合资公司；许可协议；独资自营(2)四种合作模式：a.100o
5、wnership in UK,Thailand,Australia b.50%ownership in Japan,South korea c.5%ownership shanghai,Hongkong,d.no ownership,just permits in Singapore(3)中国市场有三家合作伙伴 Case study 2:JCPenney JCPenney is an American department store chain with 1095 locations in 49U.S states and Puerto Rico.In addition to selling
6、 conventional merchandise,JCPenney stores often house several leased departments such as Sephora,Seattles Best Coffee,salons,optical centers,portrait studios,and jewelry repair.Most JCPenney stores are located in Suburban shopping malls.Before 1966,most of its stores were located in downtown areas.A
7、s shopping malls became more popular during the latter half of the 20th century,JCPenney followed the trend by relocating and developing stores to anchor the malls.In more recent years,the chain has continued to follow consumer traffic,echoing the retailing trend of opening some freestanding stores,
8、including some next door to competitors.Certain stores are located in power centers.The company has been an Internet retailer since 1998.It has streamlined its catalog and distribution while undergoing renovation improvements at store level.Strategy for entering foreign markets:(1).100%ownership in
9、Mexico&Chile(2).permits in Dubai,UAE(3).ajoint ventures in Latin America(4).Internet retailerQuestion:why do global firms carry out different strategies in different markets?What factors should be taken into consideration?Modes of entering foreign markets:1.ExportingIt is the most traditional and we
10、ll established form of operating internationally direct exporting indirect exportingQuestion:(1)whats the differences between them?(2)advantages and disadvantages of exporting2.Contract entering(1)Licensing(许可证模式）licenseeLicensorA seller(the licensor)grants a foreign firm(the licensee)the rights to
11、a process,patents,or trademarks in exchange for a license fee or royalty.image oriented products(company)Question:(1)what are included in image-oriented products?(2)merits and drawbacks (2).franchise(特许经营模式）Franchise system-distribution system in which a parent company(usually the manufacturer)grant
12、s a wholesaler franchiser franchisee or retailer the rights to sell the companys products exclusively in a certain area.the agreement,which covers many additional details,basically provides for the following:use franchisers name,color,design use method of doing business provision of training selling
13、 raw materials provision of advertising materials payment of an initial fee payment of royalty eg:Starbucks coffee-partnership(伙伴企业）GleeFeeMeFreeSeeWeDependenceIndependenceInterdependence(Curve of satisfaction)Six E factors:the curve of satisfaction3 investment A.Joint venture/shared investment Unde
14、r a shared investment arrangement,a foreign investor join with local investor to establish a local enterprise in which they share ownership and control in proportion to the amount each has invested.Advantages:Disadvantages:very significant costs of control and coordination associated with working wi
15、th a partner;cross-cultural differencessharing the risk combining different value chain strengthB direct investment Full undertaking and control of all international operations,100%ownership may be achieved by start-up or acquisition(M&A),the company own production,marketing and other facilities in
16、foreign countries without any partners.In some cases,international operations are organized into Wholly subsidiary.the firm has all the benefits and risks associated with ownership.Merits:marketing plans are sensitive to local needssavings in laborDismerits:the possibility of nationalistic acts are
17、raised and government restrictions are likely to be more stringentEg:五粮液进入国际市场的战略选择（与出口国当地企业的联合）4.Internet four modes of e-businessa)business to customer(B2C)b)business to business(B2B)c)customer to customer(C2C）d)online to offline(O2O)三.Factors affecting modes of entryIncluding external and interna
18、l factorsA.MarketIf:target market is sizable and potential-investment(why)on the contrary-exporting or contractIf:competition in target market is sporadicexporing(why)on the country-monopolistic or oligpolycontract or investment(why)B.EnvironmentIf:stable government,legal,free trade policyinvestment
19、Comparison betweem China and IndiaC.ProductionIt refers to the price and availability of production factors which affect transportation,o.peration management,cost and q:uality of products.D.Home-country factorsCompetition structure,stuff and environmentIf availability of cheap stuff-exportingE.Products Eg:service reqirementF.Resources and efforts Availability of enough funds,advanced technology and experienced international marketingFDISupplementary:eg:一件产品多国造，除了品牌都转包 外包让全球经济变样外包让全球经济变样 (outsource and subcontract)
