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Notes Entrepreneurship

The document outlines various market entry strategies, including exporting, licensing, franchising, strategic alliances, joint ventures, and wholly owned subsidiaries, each with varying levels of risk and control. It also discusses market expansion patterns such as the waterfall model, which emphasizes gradual expansion, the sprinkler model for rapid entry into multiple markets, and a selection model that balances both approaches. The choice of strategy and expansion model depends on the specific market conditions and the company's risk tolerance.

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16 views2 pages

Notes Entrepreneurship

The document outlines various market entry strategies, including exporting, licensing, franchising, strategic alliances, joint ventures, and wholly owned subsidiaries, each with varying levels of risk and control. It also discusses market expansion patterns such as the waterfall model, which emphasizes gradual expansion, the sprinkler model for rapid entry into multiple markets, and a selection model that balances both approaches. The choice of strategy and expansion model depends on the specific market conditions and the company's risk tolerance.

Uploaded by

Theowlguardian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Market entry strategy

Exporting > lowest risk of investing/ giving away controll

Licening, sell a the right to use your technology(risk that your partner becomes your compettitor.

Francicing, thye have the technology and processes, they help set it up and then allow you to run it
with small adjustments for local market

Startegic alliance, and joint venture (difference, joint venture (officially forming a new company by
fusing resources, and strategic alliance is eadier as there is no formal new company but share
resources and knowledge, but not directly competing.

Wholly owned subsidiary , higest risk as if something goes wrong you are to blame but all profits also
go to you

Usually one of the extremes, exporting or wholly owned subsidiary.

Or

Choose one and explain why

Market expansion patterns

Waterfall model, idea is that you expand in a set by step way. Go from domestic tot he next most
logical step(typically closes country of sumulair infrastructure )

Aka with evry new entry there is higher risk due to a larger deviation from the starting region
but you build experiences.

The good side is that when you have all the time in the worl dyou do not have to rusj to sieze
opportuneties, you can take your time. Which is risk redusing in off itself.

Sprinkler model, idea is to expand to different countries or regions at once, (typical digital firms)
advantage is that it estabiles presence in more places faster, but if you fail with this approach it can
have large (financial) remifications

Also done if there is little time duet o pressiure from the market(competitors)

Selection model is a mix of both, adapting tot he pressure from the market. Faster than waterfall
model but slower than sprinkler

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