International Expansion Entry Mode

Running head: INTERNATIONAL EXPANSION ENTRY MODE
International Expansion Entry Mode
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1INTERNATIONAL EXPANSION ENTRY MODE
The five international expansion entry mode are exporting, greenfield venture, licensing
and franchising, acquisition and strategic alliances. Exporting proves to be the easiest way of
entering the international market and it is achieved by the selling of products along with services
in that of the foreign countries (Saylordotorg.github.io., 2018). In the event of exporting, the
firms should give attention on the process of labeling along with packaging. Greenfield venture
is indicative of establishment of a wholly owned subsidiary and it can help a firm in getting
above average return. For facilitating the process of Greenfield venture the firm has to acquire
the knowledge along with the expertise pertaining to the existing market. The costs prove to be
high on account of the fact that a new business has to be established within that of a new country.
An advantage of Greenfield venture is that it can help a firm in retaining control of all the
operations. Licensing and franchising refers to legal contract between the two parties in which
the licensor provides the licensee with the right of producing and selling of goods. Licensing
enables an enterprise in making income from different kinds of intellectual property. Franchising
is a new marketing concept that helps in the distribution of goods along with services.
Franchising refers to a business relationship within which franchisor assigns to the independent
people the right of distribution of the franchisors goods along with services. Strategic alliance
refers to a contractual agreement in between two enterprises that stipulates that the parties should
co-operate in a manner that can help in achieving of a common purpose. For determination of the
appropriate alliance approach the firm should be capable of deciding about the value that the
partner can bring pertaining to tangible along with intangible aspect (Youtube.com., 2018). The
partnership can prove to be valuable if they have a reputable brand name and in the event of
them having relationship with that of the customer with whom the firm wants to get access to.
Acquisition refers to a transaction with the help of which a firm is able to gain control over that