Opções de estratégia para entrar e competir em mercados estrangeiros

ESTRATÉGIAS PARA COMPETIÇÃO EM MERCADOS INTERNACIONAIS.
Publicado porRita Meads Modificado há mais de 3 anos.
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Apresentação sobre o tema: "ESTRATÉGIAS PARA COMPETIÇÃO EM MERCADOS INTERNACIONAIS" - Transcrição da apresentação:
1 ESTRATÉGIAS PARA A CONCORRÊNCIA DE MERCADOS INTERNACIONAIS.
CAPÍTULO 7 ESTRATÉGIAS PARA A COMPETIÇÃO DE MERCADOS INTERNACIONAIS.
2 POR QUE AS EMPRESAS DECIDAM PARTICIPAR DOS MERCADOS ESTRANGEIROS.
Para obter acesso a novos clientes Para espalhar o risco de negócios em uma base de mercado mais ampla Para explorar ainda mais as competências essenciais Para alcançar custos menores através de economias de escala, experiência e maior poder de compra Para obter acesso a recursos e capacidades localizados em mercados estrangeiros 7-2.
3 POR QUE COMPETIR ATRAVÉS DAS FRONTEIRAS NACIONAIS FAZ ESTRATÉGIA - MAIS COMPLEXO.
1. Diferentes países têm vantagens diferentes no país de origem em diferentes indústrias 2. Vantagens de cadeia de valor baseadas em localização para certos países 3. Diferenças nas políticas governamentais, taxas de imposto e condições econômicas 4. Riscos da taxa cambial 5. Diferenças nos gostos dos compradores e Preferências de produtos e serviços 7-3.
4 O diamante de vantagem nacional.
FIGURA 7.1 O Diamond of National Advantage 7-4.
5 RAZÕES PARA LOCALIZAR AVANÁVEIS ACTIVIDADES DE CADEIA DE VALOR.
Taxas de salários mais baixas Produtividade do trabalhador mais elevado Custos de energia mais baixos Menos regulamentações ambientais Taxas de imposto mais baixas Taxas de inflação menores Proximidade de fornecedores e indústrias relacionadas tecnicamente Proximidade a clientes Custos de distribuição mais baixos Disponível \ recursos naturais únicos 7-5.
6 O IMPACTO DAS POLÍTICAS GOVERNAMENTAIS E CONDIÇÕES ECONÓMICAS EM PAÍSES HOST.
Positivos Incentivos fiscais Taxas de imposto baixas Empréstimos de baixo custo Localização e desenvolvimento do site Formação de trabalhadores Nócios Regulamentos ambientais Subvenções e empréstimos a concorrentes domésticos Restricções de importação Tarifas e cotas Requisitos de conteúdo local Aprovações regulatórias Lucro limites de repatriação Limites de propriedade minoritária 7-6.
7 OS RISCOS DOS TÍTULOS DE TAXA DE CÂMBIO ADVERSOS.
Efeitos das mudanças na taxa de câmbio: os exportadores experimentam uma demanda crescente por seus bens sempre que sua moeda se torne mais fraca em relação à moeda do país importador. Os exportadores experimentam uma queda da demanda por seus bens sempre que sua moeda cresce mais forte em relação à moeda do país importador. 7-7.
8 Principais Considerações Estratégicas.
DIFERENÇAS DE PAÍSES TRANSVERSAIS EM CONDIÇÕES DEMOGRÁFICAS, CULTURAIS E DE MERCADO Para personalizar as ofertas em cada mercado do país para combinar os gostos e preferências dos compradores locais Principais Considerações Estratégicas Para prosseguir uma estratégia de oferecer um produto em grande parte padronizado em todo o mundo. 7-8.
9 OPÇÕES ESTRATÉGICAS PARA ENTRAR E COMPETIR EM MERCADOS INTERNACIONAIS.
Manter uma base de produção nacional (um país) e exportar mercadorias para mercados estrangeiros. Licenciar empresas estrangeiras para produzir e distribuir os produtos da empresa no exterior. Empregar uma estratégia de franchising no exterior. Estabelecer uma subsidiária integral, quer adquirindo uma empresa estrangeira, quer através de um empreendimento de "greenfield". Confie em alianças estratégicas ou joint ventures com empresas estrangeiras. 7-9.
10 ESTRATÉGIAS DE EXPORTAÇÃO Vantagens Desvantagens Requisitos de capital baixos.
Economias de escala na utilização da capacidade de produção existente Não há risco de distribuição Sem risco de investimento direto Desvantagens Manutenção da vantagem de custo relativo da produção domiciliária Custos de transporte e transporte Taxas de câmbio Tarifas Tarifas de importação Perda de controle de canal 7-10.
11 ESTRATÉGIAS DE LICENCIAMENTO E FRANQUIA.
Vantagens Baixos requisitos de recursos Receita de royalties e taxas de franquia Expansão rápida em muitos mercados Desvantagens Manutenção do controle de know-how proprietário Perda de controle operacional e de qualidade Adaptação aos gostos e expectativas do mercado local 7-11.
12 ESTRATÉGIAS SUBSIDIÁRIAS ESTRANGEIRAS.
Vantagens Alto nível de controle Entrada rápida no mercado em larga escala Evita barreiras de entrada Acesso a habilidades da empresa adquirida Desvantagens Custos de aquisição Complexidade do processo de aquisição Integração das estruturas, culturas, operações e pessoal das empresas 7-12.
13 Um empreendimento greenfield é um negócio subsidiário que é estabelecido ao configurar toda a operação desde o início. 7-13.
14 BENEFÍCIOS DE ALIANÇA E ESTRATÉGIAS DE VENTURE CONJUNTA.
Obtendo o conhecimento do parceiro sobre as condições do mercado local Alcançando economias de escala através de operações conjuntas Ganhando conhecimentos técnicos e conhecimento do mercado local Compartilhando instalações de distribuição e redes de revendedores e fortalecendo mutuamente o acesso de cada parceiro aos compradores. Dirigindo energias competitivas mais para rivais mútuos e menos uns para os outros Estabelecimento de relações de trabalho com funcionários-chave no governo do país anfitrião 7-14.
15 OS RISCOS DAS ALIANÇAS ESTRATÉGICAS COM PARCEIROS ESTRANGEIROS.
Conhecimento desatualizado e experiência de parceiros locais Barreiras culturais e linguísticas Custos de estabelecer o arranjo de trabalho Conflitos de objetivos e estratégias e / ou profundas diferenças de opinião sobre o controle conjunto Diferenças de valores corporativos e padrões éticos. Perda de proteção legal de tecnologia proprietária ou vantagem competitiva Sobre dependência de parceiros estrangeiros para conhecimentos essenciais e capacidades competitivas. 7-15.
16 COMPETIÇÃO INTERNACIONAL: TRÊS ABORDAGENS ESTRATÉGICAS.
Estratégia multidoméstica estratégia global Estratégia transnacional 7-16.
17 Uma estratégia internacional é uma estratégia para competir em dois ou mais países simultaneamente.
Uma estratégia multidomestic é aquela em que uma empresa varia sua oferta de produtos e uma abordagem competitiva de país para país em um esforço para responder às diferentes preferências de comprador e condições de mercado. É uma estratégia internacional de opinião local, a nível local, facilitada pela tomada de decisões descentralizada ao nível local. 7-17.
18 Uma estratégia global é aquela em que uma empresa emprega a mesma abordagem competitiva básica em todos os países onde opera, vende muito os mesmos produtos em todos os lugares, se esforça para construir marcas globais e coordena suas ações em todo o mundo com forte controle de sede. Representa uma abordagem globalmente global e ativa. Uma estratégia transnacional é uma abordagem global, ativa e ativa, que incorpora elementos de estratégias multinacionais e globais. 7-18.
19 Três abordagens para competir internacionalmente.
FIGURA 7.2 Três abordagens para competir internacionalmente 7-19.
20 A QUESTÃO PARA VANTAGENS COMPETITIVAS NA ARENA INTERNACIONAL.
Desenvolva Vantagem Competitiva em Mercados Internacionais Utilize a localização internacional para reduzir custos ou diferenciar produtos Compartilhe recursos e recursos Obtenha benefícios de coordenação transfronteiriça 7-20.
21 COMPARTILHANDO E TRANSFERINDO RECURSOS E CAPACIDADES PARA CONSTRUIR VANTAGENS COMPETITIVAS.
Construa uma vantagem competitiva baseada em recursos Usando nomes de marca poderosos para ampliar uma vantagem competitiva baseada em diferenciação para além do mercado interno. Coordenando atividades para compartilhar e transferir recursos e capacidades de produção em diferentes domínios dos países para desenvolver profundidade de mercado em competências-chave. 7-21.
22 Os santuários de lucro são mercados do país que fornecem uma empresa com lucros substanciais devido a uma posição de mercado forte ou protegida. As subvenções entre mercados - apoiando ofensas competitivas em um mercado com recursos e lucros desviados de operações em outro mercado - podem ser uma poderosa arma competitiva. 7-22.
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O mercado global.
Copyright 1999 Prentice Hall 19-1 Capítulo 19 The Global Marketplace PRINCÍPIOS DA MARKETING Oitava edição Philip Kotler e Gary Armstrong.
Criando vantagem competitiva.
Estratégia de Negócios Internacionais Capítulo 12.
Estratégia de entrada e alianças estratégicas.
ESTRATÉGIAS PARA COMPETIÇÃO EM MERCADOS INTERNACIONAIS.
O ambiente global.
Opções Estratégicas 8: Estratégia Internacional.
Capítulo 1: Expurgo no exterior Motivações, Meios e Mentalidades.
A Estratégia de Negócios Internacionais.
Competindo em mercados estrangeiros.
Estratégia no ambiente global.
OBJECTIVOS DE APRENDIZAGEM No final deste capítulo, o leitor deve ser capaz de: Explicar as três decisões básicas antes de entrar em um mercado externo. Explicar.
Estratégia no ambiente global.
Capítulo 8: Oportunidades e resultados da estratégia internacional.
Negócio global. Drivers of Globalization Business Needs 1. Fatores de custo menor da produção (mão-de-obra, recursos naturais) 2. Tamanho do mercado maior para suportar.
9-1 © 2006 por Nelson, uma divisão da Thomson Canada Limited. Estratégia Internacional Capítulo Nove.
Estratégia de entrada e alianças estratégicas. Estratégia de Entrada de Revisões e Alianças Estratégicas As empresas que se expandem internacionalmente devem decidir: quais mercados.

ESTRATÉGIAS PARA COMPETIÇÃO EM MERCADOS INTERNACIONAIS.
Publicado porAntonia Tate Modificado há mais de 2 anos.
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Apresentação sobre o tema: "ESTRATÉGIAS PARA COMPETIÇÃO EM MERCADOS INTERNACIONAIS" - Transcrição da apresentação:
1 ESTRATÉGIAS PARA A CONCORRÊNCIA DE MERCADOS INTERNACIONAIS.
McGraw-Hill / Irwin Copyright © 2018 por The McGraw-Hill Companies, Inc. Todos os direitos reservados.
2 LO1 Desenvolva uma compreensão das principais razões pelas quais as empresas optam por competir nos mercados internacionais. LO2 Saiba por que e as diferentes condições de mercado entre os países influenciam as escolhas estratégicas de uma empresa nos mercados internacionais. LO3 Ganhe familiaridade com os cinco modos gerais de entrada nos mercados estrangeiros. LO4 Aprenda as três principais opções para adaptar a estratégia internacional de uma empresa às diferenças entre países em condições de mercado e preferências de compradores.
3 LO5 Compreender como as empresas multinacionais podem usar as operações internacionais para melhorar a competitividade geral. LO6 Compreenda as características únicas de concorrer nos mercados dos países em desenvolvimento.
4 Por que as empresas se expandem para os mercados internacionais.
Para obter acesso a novos clientes Para alcançar custos mais baixos e melhorar a competitividade da empresa Para explorar ainda mais suas competências básicas Para obter acesso a recursos e capacidades localizados em mercados estrangeiros Para espalhar seu risco comercial em uma base de mercado mais amplo.
5 Fatores que estabelecem opções estratégicas em mercados internacionais.
O grau em que existem diferenças importantes nos países em relação aos gostos dos compradores, ao tamanho do mercado e ao potencial de crescimento Se as oportunidades existem para obter uma vantagem específica de localização com base nas taxas de salários, produtividade do trabalhador, taxas de inflação, custos de energia, taxas de imposto e outros fatores que estrutura de custo de impacto Os riscos de mudanças adversas nas taxas de câmbio A medida em que as políticas governamentais afetam o ambiente de negócios.
6 Diferenças nos gostos do comprador local.
Diferenças de país nos gostos do comprador, tamanhos de mercado e potencial de crescimento Diferenças nos gostos do comprador local Aumentar os custos de produção e distribuição Reduzir economias de escala e efeitos da curva de aprendizado Diferenças no potencial de crescimento do mercado Demografia, níveis de renda e atitudes culturais variam amplamente nos mercados emergentes Falta de infra-estrutura , sistemas de distribuição e redes de varejo limitam o crescimento do mercado Diferenças na intensidade da concorrência local.
7 Como a Demografia do mercado é diferente de país para país.
Ênfase no canal de distribuição Demanda para produtos localizados Força da rivalidade competitiva local Diferenças demográficas Gostos e preferências do consumidor Poder de compra do consumidor Hábitos de compra do consumidor.
8 Como a Demografia do mercado é diferente de país para país.
Gostos e preferências do consumidor. Poder de compra do consumidor. Hábitos de compra do consumidor. Ênfase no canal de distribuição. Exigências para produtos localizados. Força da rivalidade competitiva local.
9 Oportunidades para vantagens de custos baseadas em localização.
Regulamentos ambientais Taxas de imposto Taxas de inflação Taxas salariais Produtividade do trabalhador Custos de energia Subsídios da indústria.
10 Oportunidades para vantagens de custos baseadas em localização.
Os custos e a rentabilidade de uma empresa são impactados pela localização de suas atividades devido a: Taxas de salário Produtividade do trabalhador Custos de energia Regulamentos ambientais Taxas de imposto Taxas de inflação Subsídios da indústria.
Taxa Japan Y U. S. $ 150: 1 1.500, 000 125: 1 1.250, 000 100: 1 1,000, 000 125: 1 2.000, 000 100: 1 2.000, 000.
12 Os riscos de mudanças na taxa de câmbio indesejável.
Os exportadores ganham competitividade quando a moeda do país em que os produtos são fabricados é fraca em relação à moeda do país para o qual os bens devem ser exportados. Os exportadores estão em desvantagem quando a moeda do país onde os bens são fabricados cresce mais forte em relação ao país para o qual os bens devem ser exportados.
13 O impacto das políticas de governo anfitrião no clima local de negócios.
As políticas do governo anfitrião que criam um clima de negócios favorável às empresas estrangeiras que concordam em construir ou expandir as instalações de produção e distribuição no país anfitrião incluem: impostos reduzidos. Prestadores de baixo custo. Assistência ao desenvolvimento do site.
14 O impacto das políticas de governo anfitrião no clima de negócios local (cont.)
Impacto negativo das políticas governamentais Limites de repatriamento de fundos locais Propriedade local ou requisitos de parceiros Subsídios para empresas nacionais Regulamentos ambientais Requisitos alfandegários, tarifas e cotas Requisitos de conteúdo local Exigindo aprovação prévia de projetos de investimentos de capital.
15 O Impacto das Políticas de Host-Governo sobre o Clima de Negócios Local (cont.)
As políticas do governo anfitrião que afetam negativamente as empresas estrangeiras incluem: Requisitos ambientais Requisitos alfandegários, tarifas e cotas Requisitos de conteúdo local Requer aprovação prévia de projetos de gastos de capital Limites de repatriamento de fundos locais Provisões de propriedade local ou parceiro Subsídios para empresas nacionais.
16 Os riscos políticos decorrem de instabilidade ou fraqueza nos governos nacionais e hostilidade para negócios estrangeiros; os riscos econômicos decorrem da instabilidade do sistema monetário de um país, das mudanças nas políticas econômicas e regulatórias e da falta de proteção dos direitos de propriedade.
17 opções de estratégia para entrar em mercados estrangeiros.
Manter uma base de produção nacional (um país) e exportar mercadorias para mercados estrangeiros. Licenciar empresas estrangeiras para produzir e distribuir os produtos da empresa. Empregar uma estratégia de franquia. Estabeleça uma subsidiária em um mercado externo. Confie em alianças estratégicas ou joint ventures com parceiros estrangeiros para entrar em novos mercados nacionais.
18 Estratégias de exportação A exportação envolve o uso de plantas domésticas como base de produção para exportação para mercados estrangeiros. Vantagens: maneira conservadora de testar as águas internacionais Minimiza os requisitos de risco e capital Uma estratégia de exportação é vulnerável quando: Os custos de fabricação no país de origem são mais altos do que em países estrangeiros onde os rivais têm plantas. Os custos de envio do produto para mercados distantes são relativamente altos. Mudanças adversas podem ocorrer nas taxas de câmbio.
19 Estratégias de Licenciamento O licenciamento faz sentido quando uma empresa:
Tem um know-how técnico valioso ou um produto patenteado, mas não tem capacidades internas nem recursos para entrar em mercados estrangeiros. Deseja evitar os riscos de comprometer recursos para mercados nacionais que não sejam familiares, politicamente voláteis, economicamente instáveis ​​ou de outra forma arriscados. Procura gerar renda de potenciais royalties. Desvantagem do licenciamento: fornecer conhecimentos técnicos a empresas estrangeiras cria riscos e dificuldade em manter o controle sobre seu uso.
Muitas vezes, melhor adaptado aos esforços de expansão global das empresas de serviços e varejo. Vantagens: o franqueado tem muitos dos custos e riscos de estabelecer locais estrangeiros. O franqueador deve gastar apenas os recursos para recrutar, treinar e apoiar os franqueados Desvantagem: Manutenção do controle de qualidade transfronteiriço Permitir aos franqueados discrição ao se adaptar às preferências e gostos locais.
21 Estabelecimento de uma Subsidiária em um Mercado Estrangeiro.
Permite o controle direto de todos os aspectos operacionais em um mercado externo. Opções para o desenvolvimento de uma subsidiária: Adquirir uma empresa local estrangeira com dificuldades ou êxito é o caminho mais viável e direto para superar as barreiras de entrada específicas do mercado. Estabelecer uma subsidiária estrangeira desde o início através do desenvolvimento interno baseia-se na experiência anterior da empresa com as operações do mercado externo.
22 Desenvolvendo uma Subsidiária de Inicialização de Propriedade Inteira em um Mercado Estrangeiro.
Uma estratégia de inicialização interna é atraente quando: Criar uma inicialização interna é mais barato do que fazer uma aquisição. A adição de novas capacidades de produção não afetará negativamente o equilíbrio entre oferta e demanda no mercado local. Uma subsidiária de start-up pode obter um bom acesso à distribuição (talvez por causa da marca registrada da empresa). Uma subsidiária de start-up terá o tamanho, estrutura de custos e recursos para competir frente a frente contra rivais locais.
23 Usando alianças estratégicas internacionais e joint ventures para fortalecer a concorrência nos mercados estrangeiros Benefícios mútuos das alianças transfronteiras: facilitação da entrada nos mercados estrangeiros Fortalecimento da competitividade de uma empresa nos mercados mundiais Captura de economias de escala na produção e no marketing Enchimento de lacunas em conhecimento técnico e conhecimento do mercado local Compartilhamento de instalações de distribuição, redes de revendedores e acesso mútuo aos clientes Ataque de rivais mútuos e prestação de assistência mútua Construção de relações de trabalho com entidades governamentais locais e locais do país anfitrião Obtendo acordos sobre padrões técnicos e de processos.
24 Uso de alianças estratégicas internacionais e joint ventures para fortalecer a concorrência nos mercados estrangeiros (cont.) Benefícios de alianças individuais dos sócios: preservação da independência de cada empresa parceira Evitar o uso da empresa de recursos financeiros escassos para financiar aquisições Retenção da flexibilidade da empresa para desativar-se prontamente uma vez que o propósito da aliança foi servido Opção de retirar da aliança se seus benefícios se revelarem indescritíveis para o arranjo mais permanente exigido por uma aquisição.
Conceitos e conexões 7.1 Exemplos de alianças estratégicas transfronteiriças A Verio, uma subsidiária da NTT Communications, com sede no Japão e um dos principais fornecedores globais de serviços de hospedagem na Web e transporte de dados IP, desenvolveu um modelo de negócios orientado para a aliança que combina o núcleo da empresa competências com as habilidades e produtos dos melhores parceiros de tecnologia. Os parceiros estratégicos da Verio incluem Arsenal Digital Solutions (um fornecedor de backup de fita sem preocupações, restauração de dados e serviços de armazenamento de dados), a Internet Security Systems (um provedor de sistemas de detecção e detecção de intrusão) e a Mercantec (que desenvolve software de carrinho de compras e carrinho de compras ). A administração da Verio acredita que seu portfólio de alianças estratégicas permite que ele use tecnologias inovadoras e de melhor qualidade para fornecer aos seus clientes um transporte de dados rápido, eficiente e preciso e um conjunto completo de serviços de hospedagem na Web. Um painel independente de 12 juízes selecionou recentemente a Verio como o vencedor do Prêmio de Melhor Tecnologia do Foresight por seus esforços em novas tecnologias pioneiras. O motor da estratégia de crescimento da General Motor na Ásia é sua joint venture de três vias com a Wulung, produtora chinesa de mini veículos comerciais, e a SAIC (Shanghai Automotive Industrial Corporation), a maior montadora da China. O sucesso da SAICGM-Wulung Automotive Company também é a melhor esperança da GM em recuperação financeira, uma vez que surgiu da falência em 10 de julho, enquanto a GM perdeu US $ 4,8 bilhões no total antes de juros e impostos nos últimos seis meses de 2009, suas operações internacionais (tudo exceto o Norte América e Europa) ganhou US $ 1,2 bilhão. As joint ventures chinesas representaram aproximadamente um terço desse lucro, em parte devido ao arrasador sucesso do Wulung Sunshine sem frescura, uma minivan leve que se tornou o veículo mais vendido da China. Em 2018, as vendas da General Motors na China superaram as vendas nos EUA - a primeira vez que as vendas em um mercado externo o fizeram nos 102 anos da história da empresa. A GM está agora posicionando sua joint venture chinesa para servir como um trampolim para a expansão da empresa na Índia.
Conceitos e conexões 7.1 (continuação) Exemplos de alianças estratégicas transfronteiriças A Cisco, líder mundial em componentes de rede, entrou em uma aliança estratégica com a empresa de telecomunicações finlandesa Nokia Siemens Networks para desenvolver redes de comunicação capazes de transmitir dados através da Internet ou por tecnologias móveis. A Nokia Siemens Networks foi criada através de uma joint venture internacional de 2006 entre a Siemens AG, com sede na Alemanha e a gigante das comunicações finlandesa Nokia. A aliança Cisco-Nokia Siemens foi criada para melhor posicionar ambas as empresas para a convergência entre as tecnologias da Internet e dispositivos de comunicação sem fio que se esperava que mudasse drasticamente a forma como as redes de computadores e os telefones sem fio seriam usados. A empresa européia de defesa e espacial aeronáutica (EADS) foi formada por uma aliança de empresas aeroespaciais da Grã-Bretanha, Espanha, Alemanha e França, que incluía British Aerospace, Daimler-Benz Aerospace e Aerospatiale. O objetivo da aliança era criar uma empresa aeronáutica européia capaz de competir com a Boeing Corp., com sede nos Estados Unidos. A aliança provou ser altamente bem sucedida, infundindo sua divisão aérea comercial, a Airbus, com o know-how e os recursos para competir a cabeça-a - liderar a Boeing pela liderança mundial em grandes aeronaves comerciais (mais de 100 passageiros). Desenvolvido com Mukund Kulashekeran. Fontes: sites da empresa e comunicados de imprensa.
27 Os Riscos das Alianças Estratégicas com Parceiros Estrangeiros.
Impedimentos para o sucesso das alianças: barreiras linguísticas e culturais Diferenças nos padrões éticos, valores e objetivos do parceiro, estratégias corporativas e práticas operacionais Desenvolvimento de confiança, coordenação e comunicações efetivas entre parceiros Conflito interpessoal entre os gerentes de parceiros A dependência excessiva de parceiros estrangeiros para o essencial conhecimentos e capacidades competitivas.
28 Adaptando a Estratégia Internacional de uma Empresa às Diferenças de País nas Condições de Mercado e Preferências do Comprador Escolhendo entre estratégias multinacionais localizadas ou uma estratégia global Decidir sobre o grau de variar a abordagem competitiva país por país depende das diferenças entre países nas preferências do comprador e nas condições do mercado.
29 A estratégia internacional de uma empresa é a sua estratégia para competir em dois ou mais países simultaneamente.
31 Estratégia Multidomestic-A Think Local, atua na abordagem local para a Estratégia.
Uma empresa varia suas ofertas de produtos e estratégia competitiva básica de país para país. Útil quando: existem diferenças significativas país a país nas preferências dos clientes, hábitos de compra, canais de distribuição ou métodos de marketing. Os governos anfitriões aprovam requisitos de conteúdo local ou restrições comerciais que impedem uma uniforme, abordagem coordenada de mercado mundial.
32 Uma estratégia multidoméstica exige variar a oferta de produtos de uma empresa e uma abordagem competitiva de país para país, em um esforço para responder a diferenças significativas nos países em preferências dos clientes, hábitos de compra do comprador, canais de distribuição ou métodos de marketing. Pense no local, as abordagens locais para fazer estratégias são essenciais quando as regulamentações do governo anfitrião ou as políticas comerciais impedem uma abordagem uniforme e coordenada no mercado mundial.
33 Pense Local, Agir Estratégias Locais: Dois Grandes Desvantagens.
Eles podem dificultar a transferência de competências e recursos de uma empresa através dos limites do país, porque as estratégias localizadas para competir em vários países anfitriões são fundamentadas em diferentes competências e capacidades. Eles não promovem a construção de uma única vantagem competitiva unificada, especialmente uma baseada em baixo custo, derivada de economias de escala ou efeitos de curva de aprendizado.
34 Estratégia Global - A Think Global, Atinge a Abordagem Global para a Estratégia.
Think Global, Act Global Strategy Permite que os movimentos estratégicos da empresa sejam integrados e coordenados em todo o mundo. Concentra-se em estabelecer uma imagem de marca identificável e uma reputação uniforme de país para país. Permite que a empresa concentre seus recursos completos na obtenção de uma vantagem competitiva sustentável baseada em baixo custo ou diferenciação sobre os rivais domésticos e os rivais mundiais.
35 As estratégias globais empregam a mesma abordagem competitiva básica em todos os países onde uma empresa opera e é mais adequada às indústrias globalmente padronizadas em termos de preferências dos clientes, hábitos de compra do comprador, canais de distribuição ou métodos de marketing. Este é o tema estratégico global da opinião global.
36 Estratégia Transnacional - A Think Global, atua na Abordagem Local para a Estratégia.
Uma abordagem intermediária que: Utiliza o mesmo tema competitivo básico (baixo custo, diferenciação ou foco) em cada país, mas permite que os gerentes locais tenham a latitude para: Incorporar as variações específicas do país nos atributos do produto são necessárias para melhor satisfazer os compradores locais . Faça os ajustes de produção, distribuição e marketing necessários para responder às condições do mercado local e competir com sucesso contra rivais locais.
37 Usando as operações internacionais para melhorar a competitividade geral.
Uma empresa ganha vantagem competitiva expandindo-se para fora do mercado doméstico de duas formas importantes: usando suas operações no exterior e locais de mercado para reduzir custos ou ajudá-lo a obter uma maior diferenciação de produtos. Usando a coordenação transfronteiriça entre suas operações estrangeiras dispersas de maneiras estratégicas que um competidor apenas doméstico não pode.
38 Usando o Local para Construir Vantagem Competitiva.
As empresas multinacionais que tentam obter vantagem competitiva baseada em localização devem considerar: concentrar atividades em alguns países ou dispersar o desempenho de cada processo para muitos países. Os países oferecem a melhor vantagem de localização para cada atividade.
39 Quando concentrar processos internos em alguns locais.
A concentração de atividades e processos em alguns países faz sentido quando: o custo de fabricação ou realização de outras atividades é menor em uma localização geográfica específica. Economias de escala significativas podem ser alcançadas concentrando atividades específicas. Existe uma curva de aprendizado íngreme associada à realização de uma atividade. Certos locais oferecem recursos superiores ou permitem uma melhor coordenação de atividades relacionadas.
40 Quando distribuir processos internos em vários locais.
Dispersar atividades e processos faz sentido quando: as atividades relacionadas ao comprador devem ocorrer perto de compradores. Os altos custos de transporte, as deseconomias de grande porte e as barreiras comerciais tornam muito caro operar a partir de uma localização central. As atividades de dispersão reduzem os riscos de taxas de câmbio flutuantes e desenvolvimentos políticos adversos.
41 Uma estratégia transnacional é uma abordagem global, ativa a estratégia, que envolve empregando essencialmente o mesmo tema estratégico (baixo custo, diferenciação, foco e melhor custo) em todos os mercados nacionais, ao mesmo tempo que permite a personalização de país a país. para atender às condições do mercado local.
42 Usando a Coordenação Transfronteiriça para Construir Vantagem Competitiva.
Os concorrentes multinacionais e globais coordenam as atividades através das fronteiras para obter vantagem competitiva: Compartilhando conhecimento de produtos, habilidades operacionais e eficiência da cadeia de suprimentos em seus mercados. Mudança de produção entre plantas em diferentes países para aproveitar as mudanças nas taxas de câmbio, custos de energia ou em tarifas e quotas Mudança de produção para locais com excesso de capacidade ou pessoal subutilizado.
43 Conceitos e Conexões 7. 2 Yum.
44 Estratégias para concorrer nos mercados dos países em desenvolvimento.
Mercados da economia em desenvolvimento, da China, da Índia, do Brasil, da Indonésia, da Tailândia, da Polônia, da Rússia e do México, onde os riscos de negócios e as oportunidades de crescimento são enormes à medida que suas economias se desenvolvem e seus padrões de vida escalam em direção ao mundo industrializado Adaptando produtos para As condições adequadas nos mercados emergentes geralmente envolvem: Fazer mais do que pequenas adaptações de produtos. Tornar-se mais familiarizado com culturas e hábitos locais. Repensando preços, embalagens e características do produto 44.
45 opções de estratégia para concorrer em mercados em desenvolvimento.
Esteja preparado para competir com base em preços baixos. Esteja preparado para modificar aspectos do modelo comercial da empresa para acomodar as circunstâncias locais. Tente mudar o mercado local para combinar melhor com a maneira como a empresa faz negócios em outro lugar. Evite mercados emergentes onde é impraticável ou não econômico modificar o modelo de negócios da empresa para acomodar as circunstâncias locais. Adapte o modelo de negócios e a estratégia às condições locais e seja paciente ganhando lucro. 45.
Apresentações semelhantes.
CAPÍTULO 10 Estratégia global. CAPÍTULO 10 Estratégia global.
ESTRATÉGIAS PARA COMPETIÇÃO EM MERCADOS INTERNACIONAIS.
Criando vantagem competitiva.
Unidade 13 de Marketing Internacional.
Estratégia de Entrada Capítulo 12.
Capítulo 1: Expurgo no exterior Motivações, Meios e Mentalidades.
A Estratégia de Negócios Internacionais.
McGraw-Hill / Irwin © 2005 The McGraw-Hill Companies, Inc. Todos os direitos reservados. 7-1.
Competindo em mercados estrangeiros.
Gestão de Marketing Global: Planejamento e Organização.
Estratégia no ambiente global.
AVALIANDO O AMBIENTE EXTERNO DA COMPANHIA.
© McGraw Hill Companies, Inc., 2000 Estratégia de entrada e alianças estratégicas Capítulo 14.
OBJECTIVOS DE APRENDIZAGEM No final deste capítulo, o leitor deve ser capaz de: Explicar as três decisões básicas antes de entrar em um mercado externo. Explicar.
Estratégia no ambiente global.
Capítulo 8: Oportunidades e resultados da estratégia internacional.
Negócio global. Drivers of Globalization Business Needs 1. Fatores de custo menor da produção (mão-de-obra, recursos naturais) 2. Tamanho do mercado maior para suportar.
9-1 © 2006 por Nelson, uma divisão da Thomson Canada Limited. Estratégia Internacional Capítulo Nove.
9-1 © 2006 por Nelson, uma divisão da Thomson Canada Limited. Estratégia Internacional Capítulo Nove.
Copyright © 2004 South-Western. Todos os direitos reservados.8-1 Figura 1.1 Copyright © 2004 South-Western. Todos os direitos reservados. O Processo de Gestão Estratégica.

Opções de estratégia para entrar e competir em mercados estrangeiros
Quando uma organização tomou a decisão de entrar em um mercado no exterior, há uma variedade de opções abertas. Essas opções variam consoante o custo, risco e o grau de controle que pode ser exercido sobre elas. A forma mais simples de estratégia de entrada é exportar usando um método direto ou indireto, como um agente, no caso do primeiro, ou compensar, no caso do último. Formas mais complexas incluem operações verdadeiramente globais que podem envolver joint ventures, ou exportar zonas de processamento. Tendo decidido sobre a forma de estratégia de exportação, as decisões devem ser tomadas nos canais específicos. Muitos produtos agrícolas de natureza bruta ou de mercadoria usam agentes, distribuidores ou envolvem Governo, enquanto que os materiais processados, embora não os excluam, dependem mais de formas de acesso mais sofisticadas. Estes serão expandidos mais tarde.
Os objetivos do capítulo são:
The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix. It then goes on to describe the different forms of entry strategy, both direct and indirect exporting and foreign production, and the advantages and disadvantages connected with each method. The chapter gives specific details on "countertrade", which is very prevalent in global marketing, and then concludes by looking at the special features of commodity trading with its "close coupling" between production and marketing.
An organisation wishing to "go international" faces three major issues:
i) Marketing - which countries, which segments, how to manage and implement marketing effort, how to enter - with intermediaries or directly, with what information?
ii) Sourcing - whether to obtain products, make or buy?
iii) Investment and control - joint venture, global partner, acquisition?
Decisions in the marketing area focus on the value chain (see figure 7.1). The strategy or entry alternatives must ensure that the necessary value chain activities are performed and integrated.
In making international marketing decisions on the marketing mix more attention to detail is required than in domestic marketing. Table 7.1 lists the detail required 1 .
Table 7.1 Examples of elements included in the export marketing mix.
1. Product support.
- Match existing products to markets - air, sea, rail, road, freight.
2. Price support.
- Establishment of prices.
- Distribution and maintenance of pricelists.
- Training of agents/customers.
3. Promotion/selling support.
- Exhibitions, trade shows.
- Sale or returns.
4. Inventory support.
5. Distribution support.
- Raising of capital.
- Export preparation and documentation.
6. Service support.
- Technical aid assistance.
- Sales reports, catalogues literature.
- Data processing systems.
7. Financial support.
- Billing, collecting invoices.
- Planning, scheduling budget data.
Details on the sourcing element have already been covered in the chapter on competitive analysis and strategy. Concerning investment and control, the question really is how far the company wishes to control its own fate. The degree of risk involved, attitudes and the ability to achieve objectives in the target markets are important facets in the decision on whether to license, joint venture or get involved in direct investment.
Cunningham 1 (1986) identified five strategies used by firms for entry into new foreign markets:
i) Technical innovation strategy - perceived and demonstrable superior products.
ii) Product adaptation strategy - modifications to existing products.
iii) Availability and security strategy - overcome transport risks by countering perceived risks.
iv) Low price strategy - penetration price and,
v) Total adaptation and conformity strategy - foreign producer gives a straight copy.
In marketing products from less developed countries to developed countries point iii) poses major problems. Buyers in the interested foreign country are usually very careful as they perceive transport, currency, quality and quantity problems. This is true, say, in the export of cotton and other commodities.
Because, in most agricultural commodities, production and marketing are interlinked, the infrastructure, information and other resources required for building market entry can be enormous. Sometimes this is way beyond the scope of private organisations, so Government may get involved. It may get involved not just to support a specific commodity, but also to help the "public good". Whilst the building of a new road may assist the speedy and expeditious transport of vegetables, for example, and thus aid in their marketing, the road can be put to other uses, in the drive for public good utilities. Moreover, entry strategies are often marked by "lumpy investments". Huge investments may have to be undertaken, with the investor paying a high risk price, long before the full utilisation of the investment comes. Good examples of this include the building of port facilities or food processing or freezing facilities. Moreover, the equipment may not be able to be used for other processes, so the asset specific equipment, locked into a specific use, may make the owner very vulnerable to the bargaining power of raw material suppliers and product buyers who process alternative production or trading options. Zimfreeze, Zimbabwe is experiencing such problems. It built a large freezing plant for vegetables but found itself without a contract. It has been forced, at the moment, to accept sub optional volume product materials just in order to keep the plant ticking over.
In building a market entry strategy, time is a crucial factor. The building of an intelligence system and creating an image through promotion takes time, effort and money. Brand names do not appear overnight. Large investments in promotion campaigns are needed. Transaction costs also are a critical factor in building up a market entry strategy and can become a high barrier to international trade. Costs include search and bargaining costs. Physical distance, language barriers, logistics costs and risk limit the direct monitoring of trade partners. Enforcement of contracts may be costly and weak legal integration between countries makes things difficult. Also, these factors are important when considering a market entry strategy. In fact these factors may be so costly and risky that Governments, rather than private individuals, often get involved in commodity systems. This can be seen in the case of the Citrus Marketing Board of Israel. With a monopoly export marketing board, the entire system can behave like a single firm, regulating the mix and quality of products going to different markets and negotiating with transporters and buyers. Whilst these Boards can experience economies of scale and absorb many of the risks listed above, they can shield producers from information about, and from. buyers. They can also become the "fiefdoms" of vested interests and become political in nature. They then result in giving reduced production incentives and cease to be demand or market orientated, which is detrimental to producers.
Normal ways of expanding the markets are by expansion of product line, geographical development or both. It is important to note that the more the product line and/or the geographic area is expanded the greater will be the managerial complexity. New market opportunities may be made available by expansion but the risks may outweigh the advantages, in fact it may be better to concentrate on a few geographic areas and do things well. This is typical of the horticultural industry of Kenya and Zimbabwe. Traditionally these have concentrated on European markets where the markets are well known. Ways to concentrate include concentrating on geographic areas, reducing operational variety (more standard products) or making the organisational form more appropriate. In the latter the attempt is made to "globalise" the offering and the organisation to match it. This is true of organisations like Coca Cola and MacDonald's. Global strategies include "country centred" strategies (highly decentralised and limited international coordination), "local market approaches" (the marketing mix developed with the specific local (foreign) market in mind) or the "lead market approach" (develop a market which will be a best predictor of other markets). Global approaches give economies of scale and the sharing of costs and risks between markets.
There are a variety of ways in which organisations can enter foreign markets. The three main ways are by direct or indirect export or production in a foreign country (see figure 7.2).
Exporting is the most traditional and well established form of operating in foreign markets. Exporting can be defined as the marketing of goods produced in one country into another. Whilst no direct manufacturing is required in an overseas country, significant investments in marketing are required. The tendency may be not to obtain as much detailed marketing information as compared to manufacturing in marketing country; however, this does not negate the need for a detailed marketing strategy.
The advantages of exporting are:
& # 183; manufacturing is home based thus, it is less risky than overseas based.
& # 183; gives an opportunity to "learn" overseas markets before investing in bricks and mortar.
& # 183; reduces the potential risks of operating overseas.
The disadvantage is mainly that one can be at the "mercy" of overseas agents and so the lack of control has to be weighed against the advantages. For example, in the exporting of African horticultural products, the agents and Dutch flower auctions are in a position to dictate to producers.
A distinction has to be drawn between passive and aggressive exporting. A passive exporter awaits orders or comes across them by chance; an aggressive exporter develops marketing strategies which provide a broad and clear picture of what the firm intends to do in the foreign market. Pavord and Bogart 2 (1975) found significant differences with regard to the severity of exporting problems in motivating pressures between seekers and non-seekers of export opportunities. They distinguished between firms whose marketing efforts were characterized by no activity, minor activity and aggressive activity.
Those firms who are aggressive have clearly defined plans and strategy, including product, price, promotion, distribution and research elements. Passiveness versus aggressiveness depends on the motivation to export. In countries like Tanzania and Zambia, which have embarked on structural adjustment programmes, organisations are being encouraged to export, motivated by foreign exchange earnings potential, saturated domestic markets, growth and expansion objectives, and the need to repay debts incurred by the borrowings to finance the programmes. The type of export response is dependent on how the pressures are perceived by the decision maker. Piercy (1982) 3 highlights the fact that the degree of involvement in foreign operations depends on "endogenous versus exogenous" motivating factors, that is, whether the motivations were as a result of active or aggressive behaviour based on the firm's internal situation (endogenous) or as a result of reactive environmental changes (exogenous).
If the firm achieves initial success at exporting quickly all to the good, but the risks of failure in the early stages are high. The "learning effect" in exporting is usually very quick. The key is to learn how to minimise risks associated with the initial stages of market entry and commitment - this process of incremental involvement is called "creeping commitment" (see figure 7.3).
Exporting methods include direct or indirect export. In direct exporting the organisation may use an agent, distributor, or overseas subsidiary, or act via a Government agency. In effect, the Grain Marketing Board in Zimbabwe, being commercialised but still having Government control, is a Government agency. The Government, via the Board, are the only permitted maize exporters. Bodies like the Horticultural Crops Development Authority (HCDA) in Kenya may be merely a promotional body, dealing with advertising, information flows and so on, or it may be active in exporting itself, particularly giving approval (like HCDA does) to all export documents. In direct exporting the major problem is that of market information. The exporter's task is to choose a market, find a representative or agent, set up the physical distribution and documentation, promote and price the product. Control, or the lack of it, is a major problem which often results in decisions on pricing, certification and promotion being in the hands of others. Certainly, the phytosanitary requirements in Europe for horticultural produce sourced in Africa are getting very demanding. Similarly, exporters are price takers as produce is sourced also from the Caribbean and Eastern countries. In the months June to September, Europe is "on season" because it can grow its own produce, so prices are low. As such, producers are better supplying to local food processors. In the European winter prices are much better, but product competition remains.
According to Collett 4 (1991)) exporting requires a partnership between exporter, importer, government and transport. Without these four coordinating activities the risk of failure is increased. Contracts between buyer and seller are a must. Forwarders and agents can play a vital role in the logistics procedures such as booking air space and arranging documentation. A typical coordinated marketing channel for the export of Kenyan horticultural produce is given in figure 7.4.
In this case the exporters can also be growers and in the low season both these and other exporters may send produce to food processors which is also exported.
Figure 7.4 The export marketing channel for Kenyan horticultural products.
Exporting can be very lucrative, especially 'if it is of high value added produce. For example in 1992/93 Zimbabwe exported 5 338,38 tonnes of flowers, 4 678,18 tonnes of horticultural produce and 12 000 tonnes of citrus at a total value of about US$ 22 016,56 million. In some cases a mixture of direct and indirect exporting may be achieved with mixed results. For example, the Grain Marketing Board of Zimbabwe may export grain directly to Zambia, or may sell it to a relief agency like the United Nations, for feeding the Mozambican refugees in Malawi. Payment arrangements may be different for the two transactions.
Nali products of Malawi gives an interesting example of a "passive to active" exporting mode.
CASE 7.1 Nali Producers - Malawi.
Nali group, has, since the early 1970s, been engaged in the growing and exporting of spices. Spices are also used in the production of a variety of sauces for both the local and export market. Its major success has been the growing and exporting of Birdseye chilies. In the early days knowledge of the market was scanty and thus the company was obtaining ridiculously low prices. Towards the end of 1978 Nali chilies were in great demand, yet still the company, in its passive mode, did not fully appreciate the competitive implications of the business until a number of firms, including Lonrho and Press Farming, started to grow and export.
Again, due to the lack of information, a product of its passivity, the firm did not realise that Uganda, with their superior product, and Papua New Guinea were major exporters, However, the full potential of these countries was hampered by internal difficulties. Nali was able to grow into a successful commercial enterprise. However, with the end of the internal problems, Uganda in particular, began an aggressive exporting policy, using their overseas legations as commercial propagandists. Nali had to respond with a more formal and active marketing operation. However it is being now hampered by a number of important "exogenous" factors.
The entry of a number of new Malawian growers, with inferior products, has damaged the Malawian chili reputation, so has the lack of a clear Government policy and the lack of financing for traders, growers and exporters.
The latter only serves to emphasise the point made by Collett, not only do organisations need to be aggressive, they also need to enlist the support of Government and importers.
It is interesting to note that Korey (1986) warns that direct modes of market entry may be less and less available in the future. Growing trading blocs like the EU or EFTA means that the establishing of subsidiaries may be one of the only means forward in future.
It is interesting to note that Korey 5 1986 warned that direct modes of market entry may be less and less available in the future. Growing trading blocks like the EU or EFTA means that the establishment of subsidiaries may be one of the only ways forward in future. Indirect methods of exporting include the use of trading companies (very much used for commodities like cotton, soya, cocoa), export management companies, piggybacking and countertrade.
Indirect methods offer a number of advantages including:
& # 183; Contracts - in the operating market or worldwide.
& # 183; Commission sates give high motivation (not necessarily loyalty)
& # 183; Manufacturer/exporter needs little expertise.
& # 183; Credit acceptance takes burden from manufacturer.
Piggybacking is an interesting development. The method means that organisations with little exporting skill may use the services of one that has. Another form is the consolidation of orders by a number of companies in order to take advantage of bulk buying. Normally these would be geographically adjacent or able to be served, say, on an air route. The fertilizer manufacturers of Zimbabwe, for example, could piggyback with the South Africans who both import potassium from outside their respective countries.
By far the largest indirect method of exporting is countertrade. Competitive intensity means more and more investment in marketing. In this situation the organisation may expand operations by operating in markets where competition is less intense but currency based exchange is not possible. Also, countries may wish to trade in spite of the degree of competition, but currency again is a problem. Countertrade can also be used to stimulate home industries or where raw materials are in short supply. It can, also, give a basis for reciprocal trade.
Estimates vary, but countertrade accounts for about 20-30% of world trade, involving some 90 nations and between US $100-150 billion in value. The UN defines countertrade as "commercial transactions in which provisions are made, in one of a series of related contracts, for payment by deliveries of goods and/or services in addition to, or in place of, financial settlement".
Countertrade is the modem form of barter, except contracts are not legal and it is not covered by GATT. It can be used to circumvent import quotas.
Countertrade can take many forms. Basically two separate contracts are involved, one for the delivery of and payment for the goods supplied and the other for the purchase of and payment for the goods imported. The performance of one contract is not contingent on the other although the seller is in effect accepting products and services from the importing country in partial or total settlement for his exports. There is a broad agreement that countertrade can take various forms of exchange like barter, counter purchase, switch trading and compensation (buyback). For example, in 1986 Albania began offering items like spring water, tomato juice and chrome ore in exchange for a contract to build a US $60 million fertilizer and methanol complex. Information on potential exchange can be obtained from embassies, trade missions or the EU trading desks.
Barter is the direct exchange of one good for another, although valuation of respective commodities is difficult, so a currency is used to underpin the item's value.
Barter trade can take a number of formats. Simple barter is the least complex and oldest form of bilateral, non-monetarised trade. Often it is called "straight", "classical" or "pure" barter. Barter is a direct exchange of goods and services between two parties. Shadow prices are approximated for products flowing in either direction. Generally no middlemen are involved. Usually contracts for no more than one year are concluded, however, if for longer life spans, provisions are included to handle exchange ratio fluctuations when world prices change.
Closed end barter deals are modifications of straight barter in that a buyer is found for goods taken in barter before the contract is signed by the two trading parties. No money is involved and risks related to product quality are significantly reduced.
Clearing account barter, also termed clearing agreements, clearing arrangements, bilateral clearing accounts or simply bilateral clearing, is where the principle is for the trades to balance without either party having to acquire hard currency. In this form of barter, each party agrees in a single contract to purchase a specified and usually equal value of goods and services. The duration of these transactions is commonly one year, although occasionally they may extend over a longer time period. The contract's value is expressed in non-convertible, clearing account units (also termed clearing dollars) that effectively represent a line of credit in the central bank of the country with no money involved.
Clearing account units are universally accepted for the accounting of trade between countries and parties whose commercial relationships are based on bilateral agreements. The contract sets forth the goods to be exchanged, the rates of exchange, and the length of time for completing the transaction. Limited export or import surpluses may be accumulated by either party for short periods. Generally, after one year's time, imbalances are settled by one of the following approaches: credit against the following year, acceptance of unwanted goods, payment of a previously specified penalty or payment of the difference in hard currency.
Trading specialists have also initiated the practice of buying clearing dollars at a discount for the purpose of using them to purchase saleable products. In turn, the trader may forfeit a portion of the discount to sell these products for hard currency on the international market. Compared with simple barter, clearing accounts offer greater flexibility in the length of time for drawdown on the lines of credit and the types of products exchanged.
Counter purchase, or buyback, is where the customer agrees to buy goods on condition that the seller buys some of the customer's own products in return (compensatory products). Alternatively, if exchange is being organised at national government level then the seller agrees to purchase compensatory goods from an unrelated organisation up to a pre-specified value (offset deal). The difference between the two is that contractual obligations related to counter purchase can extend over a longer period of time and the contract requires each party to the deal to settle most or all of their account with currency or trade credits to an agreed currency value.
Where the seller has no need for the item bought he may sell the produce on, usually at a discounted price, to a third party. This is called a switch deal. In the past a number of tractors have been brought into Zimbabwe from East European countries by switch deals.
Compensation (buy-backs) is where the supplier agrees to take the output of the facility over a specified period of time or to a specified volume as payment. For example, an overseas company may agree to build a plant in Zambia, and output over an agreed period of time or agreed volume of produce is exported to the builder until the period has elapsed. The plant then becomes the property of Zambia.
Khoury 6 (1984) categorises countertrade as follows (see figure 7.5):
One problem is the marketability of products received in countertrade. This problem can be reduced by the use of specialised trading companies which, for a fee ranging between 1 and 5% of the value of the transaction, will provide trade related services like transportation, marketing, financing, credit extension, etc. These are ever growing in size.
Countertrade has disadvantages:
& # 183; Not covered by GATT so "dumping" may occur.
& # 183; Quality is not of international standard so costly to the customer and trader.
& # 183; Variety is tow so marketing of wkat is limited.
& # 183; Difficult to set prices and service quality.
& # 183; Inconsistency of delivery and specification,
& # 183; Difficult to revert to currency trading - so quality may decline further and therefore product is harder to market.
Shipley and Neale 7 (1988) therefore suggest the following:
& # 183; Ensure the benefits outweigh the disadvantages.
& # 183; Try to minimise the ratio of compensation goods to cash - if possible inspect the goods for specifications.
& # 183; Include all transactions and other costs involved in countertrade in the nominal value specified for the goods being sold.
& # 183; Avoid the possibility of error of exploitation by first gaining a thorough understanding of the customer's buying systems, regulations and politics,
& # 183; Ensure that any compensation goods received as payment are not subject to import controls.
Despite these problems countertrade is likely "to grow as a major indirect entry method, especially in developing countries.
Besides exporting, other market entry strategies include licensing, joint ventures, contract manufacture, ownership and participation in export processing zones or free trade zones.
Licensing: Licensing is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor".
It is quite similar to the "franchise" Operação. Coca Cola is an excellent example of licensing. In Zimbabwe, United Bottlers have the licence to make Coke.
Licensing involves little expense and involvement. The only cost is signing the agreement and policing its implementation.
Licensing gives the following advantages:
& # 183; Good way to start in foreign operations and open the door to low risk manufacturing relationships.
& # 183; Linkage of parent and receiving partner interests means both get most out of marketing effort.
& # 183; Capital not tied up in foreign operation and.
& # 183; Options to buy into partner exist or provision to take royalties in stock.
The disadvantages are:
& # 183; Limited form of participation - to length of agreement, specific product, process or trademark.
& # 183; Potential returns from marketing and manufacturing may be lost.
& # 183; Partner develops know-how and so licence is short.
& # 183; Licensees become competitors - overcome by having cross technology transfer deals and.
& # 183; Requires considerable fact finding, planning, investigation and interpretation.
Those who decide to license ought to keep the options open for extending market participation. This can be done through joint ventures with the licensee.
Joint ventures can be defined as "an enterprise in which two or more investors share ownership and control over property rights and operation".
Joint ventures are a more extensive form of participation than either exporting or licensing. In Zimbabwe, Olivine industries has a joint venture agreement with HJ Heinz in food processing.
Joint ventures give the following advantages:
& # 183; Sharing of risk and ability to combine the local in-depth knowledge with a foreign partner with know-how in technology or process.
& # 183; Joint financial strength.
& # 183; May be only means of entry and.
& # 183; May be the source of supply for a third country.
They also have disadvantages:
& # 183; Partners do not have full control of management.
& # 183; May be impossible to recover capital if need be.
& # 183; Disagreement on third party markets to serve and.
& # 183; Partners may have different views on expected benefits.
If the partners carefully map out in advance what they expect to achieve and how, then many problems can be overcome.
Ownership: The most extensive form of participation is 100% ownership and this involves the greatest commitment in capital and managerial effort. The ability to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing. However, as mentioned earlier, repatriation of earnings and capital has to be carefully monitored. The more unstable the environment the less likely is the ownership pathway an option.
These forms of participation: exporting, licensing, joint ventures or ownership, are on a continuum rather than discrete and can take many formats. Anderson and Coughlan 8 (1987) summarise the entry mode as a choice between company owned or controlled methods - "integrated" channels - or "independent" channels. Integrated channels offer the advantages of planning and control of resources, flow of information, and faster market penetration, and are a visible sign of commitment. The disadvantages are that they incur many costs (especially marketing), the risks are high, some may be more effective than others (due to culture) and in some cases their credibility amongst locals may be lower than that of controlled independents. Independent channels offer lower performance costs, risks, less capital, high local knowledge and credibility. Disadvantages include less market information flow, greater coordinating and control difficulties and motivational difficulties. In addition they may not be willing to spend money on market development and selection of good intermediaries may be difficult as good ones are usually taken up anyway.
Once in a market, companies have to decide on a strategy for expansion. One may be to concentrate on a few segments in a few countries - typical are cashewnuts from Tanzania and horticultural exports from Zimbabwe and Kenya - or concentrate on one country and diversify into segments. Other activities include country and market segment concentration - typical of Coca Cola or Gerber baby foods, and finally country and segment diversification. Another way of looking at it is by identifying three basic business strategies: stage one - international, stage two - multinational (strategies correspond to ethnocentric and polycentric orientations respectively) and stage three - global strategy (corresponds with geocentric orientation). The basic philosophy behind stage one is extension of programmes and products, behind stage two is decentralisation as far as possible to local operators and behind stage three is an integration which seeks to synthesize inputs from world and regional headquarters and the country organisation. Whilst most developing countries are hardly in stage one, they have within them organisations which are in stage three. This has often led to a "rebellion" against the operations of multinationals, often unfounded.
Export processing zones (EPZ)
Whilst not strictly speaking an entry-strategy, EPZs serve as an "entry" into a market. They are primarily an investment incentive for would be investors but can also provide employment for the host country and the transfer of skills as well as provide a base for the flow of goods in and out of the country. One of the best examples is the Mauritian EPZ 12 , founded in the 1970s.
CASE 7.2 The Mauritian Export Processing Zone.
Since its inception over 400 firms have established themselves in sectors as diverse as textiles, food, watches. And plastics. In job employment the results have been startling, as at 1987, 78,000 were employed in the EPZ. Export earnings have tripled from 1981 to 1986 and the added value has been significant - The roots of success can be seen on the supply, demand and institutional sides. On the supply side the most critical factor has been the generous financial and other incentives, on the demand side, access to the EU, France, India and Hong Kong was very tempting to investors. On the institutional side positive schemes were put in place, including finance from the Development Bank and the cutting of red tape. In setting up the export processing zone the Mauritian government displayed a number of characteristics which in hindsight, were crucial to its success.
& # 183; The government intelligently sought a development strategy in an apolitical manner.
& # 183; It stuck to its strategy in the long run rather than reverse course at the first sign of trouble.
& # 183; It encouraged market incentives rather than undermined them.
& # 183; It showed a good deal of adaptability, meeting each challenge with creative solutions rather than maintaining the status quo.
& # 183; It adjusted the general export promotion programme to suit its own particular needs and characteristics.
& # 183; It consciously guarded against the creation of an unwieldy bureaucratic structure.
Organisations are faced with a number of strategy alternatives when deciding to enter foreign markets. Each one has to be carefully weighed in order to make the most appropriate choice. Every approach requires careful attention to marketing, risk, matters of control and management. A systematic assessment of the different entry methods can be achieved through the use of a matrix (see table 7.2).
Table 7.2 Matrix for comparing alternative methods of market entry.
Wholly owned operation.
a) Company goals.
b) Size of company.
g) Middlemen characteristics.
h) Environmental characteristics.
i) Number of markets.
k) Market feedback.
l) International market learning.
n) Marketing costs.
q) Administration personnel.
r) Foreign problems.
Details of channel management will appear in a later chapter.
As has been pointed out time and again in this text, the international marketing of agricultural products is a "close coupled" affair between production and marketing and end user. Certain characteristics can be identified in market entry strategies which are different from the marketing of say cars or television sets. These refer specifically to the institutional arrangements linking producers and processors/exporters and those between exporters and foreign buyers/agents.
Institutional links between producers and processors/exporters.
One of the most important factors is contract coordination. Whilst many of the details vary, most contracts contain the supply of credit/production inputs, specifications regarding quantity, quality and timing of producer deliveries and a formula or price mechanism. Such arrangements have improved the flow of money, information and technologies, and very importantly, shared the risk between producers and exporters.
Most arrangements include some form of vertical integration between producers and downstream activities. Often processors enter into contracted outgrower arrangements or supply raw inputs. This institutional arrangement has now, incidentally, spilled over into the domestic market where firms are wishing to target higher quality, higher priced segments.
Producer trade associations, boards or cooperatives have played a significant part in the entry strategies of many exporting countries. They act as a contact point between suppliers and buyers, obtain vital market information, liaise with Governments over quotas etc. and provide information, or even get involved in quality standards. Some are very active, witness the Horticultural Crops Development Authority (HCDA) of Kenya and the Citrus Marketing Board (CMD) of Israel, the latter being a Government agency which specifically got involved in supply quotas. An example of the institutional arrangements 13 involved is given in table 7.3.
Table 7.3 Institutional arrangements linking producers with processors/exporters.
Marketing risk reduction.
Israel fresh fruits.
XX = Dominant linkage.
Institutional links between exporters and foreign buyers/agents.
Linkages between exporters and foreign buyers are often dominated by open market trade or spot market sales or sales on consignment. The physical distances involved are also very significant.
Most contracts are of a seasonal, annual or other nature. Some products are handled by multinationals, others by formal integration by processors, building up import/distribution firms. In the case of Kenyan fresh vegetables familial ties are very important between exporters and importers. These linkages have been very important in maintaining market excess, penetrating expanding markets and in obtaining market and product change information, thus reducing considerably the risks of doing business. In some cases, Government gets involved in negotiating deals with foreign countries, either through trade agreements or other mechanisms. Zimbabwe's imports of Namibian mackerel were the result of such a Government negotiated deal. Table 7.4 13 gives examples of linkages between exporters and foreign buyers/agents.
Table 7.4 Linkages between exporters and foreign buyers/agents.
Marketing risk reduction.
Israel fresh fruits.
XX = Dominant linkage.
Once again, it can not be over-emphasized that the smooth flow between producers, marketers and end users is essential. However it must also be noted that unless strong relationships or contracts are built up and product qualities maintained, the smooth flow can be interrupted should a more competitive supplier enter the market. This also can occur by Government decree, or by the erection of non-tariff barriers to trade. By improving strict hygiene standards a marketing chain can be broken, however strong the link, by say, Government. This, however, should not occur, if the link involves the close monitoring and action by the various players in the system, who are aware, through market intelligence, of any possible changes.
Having done all the preparatory planning work (no mean task in itself!), the prospective global marketer has then to decide on a market entry strategy and a marketing mix. These are two main ways of foreign market entryeither by entering from a home market base, via direct or indirect exporting, or by foreign based production. Within these two possibilities, marketers can adopt an "aggressive" or "passive" export path.
Entry from the home base (direct) includes the use of agents, distributors, Government and overseas subsidiaries and (indirect) includes the use of trading companies, export management companies, piggybacking or countertrade. Entry from a foreign base includes licensing, joint ventures, contract manufacture, ownership and export processing zones. Each method has its peculiar advantages and disadvantages which the marketer must carefully consider before making a choice.
Export processing zones.
1. Review the general problems encountered when building market entry strategies for agricultural commodities. Give examples.
2. Describe briefly the different methods of foreign market entry.
3. What are the advantages and disadvantages of barter, countertrade, licensing, joint venture and export processing zones as market entry strategies?
1. General problems:
i) Interlinking of production and marketing means private investment alone may not be possible, so Government intervention may be needed also e. g. to build infrastructure e. g. Israeli fresh fruit.
Method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, knowhow or some other skill by the licensor.
ii) "Lumpy investment" building capacity long before it may be currently utilised e. g. port facilities.
& # 183; entry point with risk reduction,
& # 183; benefits to both parties,
& # 183; capital not tied up,
& # 183; opportunities to buy into partner or royalties on the stock.
iii) Time - processing, transport and storage - so credit is needed e. g. Argentina beef.
iv) Transaction costs - logistics, market information, regulatory enforcement.
& # 183; limited form or participation,
& # 183; potential returns from marketing and manufacturing may be lost,
& # 183; partner develops knowhow and so license is short,
& # 183; partner becomes competitor,
& # 183; requires a lot of planning beforehand.
v) Risk - business, non-business.
An enterprise in which two or more investors share ownership and control over property rights and operation.
vi) Building of relationships and infrastructural developments "correct formats"
2. Different methods.
These are either "direct", "indirect" or "foreign" Sediada.
& # 183; sharing of risk and knowhow,
& # 183; may be only means of entry,
& # 183; may be source of supply for third country.
Direct - Agent, distributor, Government, overseas subsidiary.
& # 183; partners do not have full control or management,
& # 183; may be impossible to recover capital,
& # 183; disagreement between purchasers or third party - served markets,
& # 183; partners have different views on exported benefits.
Indirect - Trading company, export management company, piggyback, countertrade.
v) Export processing zones -
A zone within a country, exempt from tax and duties, for the processing or reprocessing of goods for export.
Foreign - Licensing, joint venture, contract manufacture, ownership, export processing zone.
Students should give a definition and expand on each of these methods.
& # 183; host country obtains knowhow,
& # 183; capital, technology, employment opportunities;
& # 183; foreign exchange earnings;
Direct exchange of one good for another. (may be straight or closed or clearing account method)
& # 183; short term investments,
& # 183; transaction costs and benefits,
& # 183; not part of economy so alienisation,
& # 183; labour laws may be different,
& # 183; simple to administer,
& # 183; commodity based valuation or currency based valuation.
& # 183; risk of non delivery,
& # 183; risk of commodity price rise thus losing out on an increased valuation,
& # 183; marketability of products.
Customer agrees to buy goods on condition that the seller buys some of the customer's own products in return (may be time, method of financing, balance of compensation or pertinence of compensating product based)
& # 183; method of obtaining sales by seller and getting a slice of the order,
& # 183; method of breaking into a "closed" mercado.
& # 183; not covered by GATT,
& # 183; so dumping may occur,
& # 183; usuality differences, variety differences,
& # 183; difficult to set price and service quality,
& # 183; inconsistency of delivery and specification,
& # 183; difficult to revert to currency trading.
Exercise 7.1 Market entry strategies.
Take a major non-traditional crop or agricultural product which your country produces with sales potential overseas. Devise a market entry strategy for the product, clearly showing which you would use and justify your choice indicating why the method chosen would give benefits to your country and the intended importing country(s).
1. Cunningham, M. T. "Strategies for International Industrial Marketing". In D. W. Turnbull and J. P. Valla (eds.) Croom Helm 1986, p 9.
2. Pavord and Bogart. "Quoted in The Export Marketing Decision" S. A. Hara in S. Carter (Ed) "Export Procedures", Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa 1991.
3. Piercy, N. "Company Internationalisation: Active and Reactive Exporting". European Journal of Marketing, Vol. 15, No. 3, 1982, pp 26-40.
4. Collett, W. E. "International Transport and Handling of Horticultural Produce" in S. Carter (ed.) "Horticultural Marketing". Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa, 1991.
5. Korey, G. "Multilateral Perspectives in International Marketing Dynamics". European Journal of Marketing, Vol. 20, No. 7, 1986, pp 34-42.
6. Khoury, S. J "Countertrade: Forms, Motives, Pitfalls and Negotiation Requisites". Journal of Business Research, Vol. 12, 1984, pp 257-270.
7. Shipley, D. D. and Neale, C. W. "Successful Countertrading. Management Decision", Vol. 26, No. 1, pp 49-52.
8. Anderson, E. and Coughlan, A. T. "International Market Entry and Expansion via Independent or Integrated Channels of Distribution". Journal of Marketing, Vol. 51. January 1987, pp 71-82.
9. Keegan, W. J. "Global Marketing Management", 4th ed. Prentice Hall International Editions, 1989.
10. Khoromana, A. P. "The Experience and Problems in Exporting Spices". In S. Carter (ed.) Export Procedures Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa, August 1991.
11. Basche, J. R. Jr. "Export Marketing Services and Costs". New York: The Conference Board, 1971, p4.
12. Bheenich, R. and Shapiro, M. O. Mauritius: "A Case Study of the Export Processing Zone. In Successful African Development", EDI Development Policy Case Series, No. 1, 1989, pp 97-127.
13. Jaffee S. "Exporting High Value Food Commodities". "World Bank Discussion Paper" pp 198, 1993.

Market Entry Strategies.
There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing. There will be a number of factors that will influence your choice of strategy, including, but not limited to, tariff rates, the degree of adaptation of your product required, marketing and transportation costs. While these factors may well increase your costs it is expected the increase in sales will offset these costs. The following strategies are the main entry options open to you.
Direct Exporting.
Direct exporting is selling directly into the market you have chosen using in the first instance you own resources. Many companies, once they have established a sales program turn to agents and/or distributors to represent them further in that market. Agents and distributors work closely with you in representing your interests. They become the face of your company and thus it is important that your choice of agents and distributors is handled in much the same way you would hire a key staff person.
Licensing is a relatively sophisticated arrangement where a firm transfers the rights to the use of a product or service to another firm. It is a particularly useful strategy if the purchaser of the license has a relatively large market share in the market you want to enter. Licenses can be for marketing or production. licensing).
Franchising.
Franchising is a typical North American process for rapid market expansion but it is gaining traction in other parts of the world. Franchising works well for firms that have a repeatable business model (eg. food outlets) that can be easily transferred into other markets. Two caveats are required when considering using the franchise model. The first is that your business model should either be very unique or have strong brand recognition that can be utilized internationally and secondly you may be creating your future competition in your franchisee.
Partnering.
Partnering is almost a necessity when entering foreign markets and in some parts of the world (e. g. Asia) it may be required. Partnering can take a variety of forms from a simple co-marketing arrangement to a sophisticated strategic alliance for manufacturing. Partnering is a particularly useful strategy in those markets where the culture, both business and social, is substantively different than your own as local partners bring local market knowledge, contacts and if chosen wisely customers.
Empreendimentos conjuntos.
Joint ventures are a particular form of partnership that involves the creation of a third independently managed company. It is the 1+1=3 process. Two companies agree to work together in a particular market, either geographic or product, and create a third company to undertake this. Risks and profits are normally shared equally. The best example of a joint venture is Sony/Ericsson Cell Phone.
Buying a Company.
In some markets buying an existing local company may be the most appropriate entry strategy. This may be because the company has substantial market share, are a direct competitor to you or due to government regulations this is the only option for your firm to enter the market. It is certainly the most costly and determining the true value of a firm in a foreign market will require substantial due diligence. On the plus side this entry strategy will immediately provide you the status of being a local company and you will receive the benefits of local market knowledge, an established customer base and be treated by the local government as a local firm.
Piggybacking.
Piggybacking is a particularly unique way of entering the international arena. If you have a particularly interesting and unique product or service that you sell to large domestic firms that are currently involved in foreign markets you may want to approach them to see if your product or service can be included in their inventory for international markets. This reduces your risk and costs because you are essentially selling domestically and the larger firm is marketing your product or service for you internationally.
Turnkey Projects.
Turnkey projects are particular to companies that provide services such as environmental consulting, architecture, construction and engineering. A turnkey project is where the facility is built from the ground up and turned over to the client ready to go – turn the key and the plant is operational. This is a very good way to enter foreign markets as the client is normally a government and often the project is being financed by an international financial agency such as the World Bank so the risk of not being paid is eliminated.
Greenfield Investments.
Greenfield investments require the greatest involvement in international business. A greenfield investment is where you buy the land, build the facility and operate the business on an ongoing basis in a foreign market. It is certainly the most costly and holds the highest risk but some markets may require you to undertake the cost and risk due to government regulations, transportation costs, and the ability to access technology or skilled labour.

Strategy options for entering and competing in foreign markets

This is “Options for Competing in International Markets”, section 7.4 from the book Strategic Management: Evaluation and Execution (v. 1.0). Para obter detalhes sobre isso (incluindo o licenciamento), clique aqui.
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7.4 Options for Competing in International Markets.
Objetivos de aprendizado.
Understand the various options for entering an international market. Be able to provide an example of a firm using each option.
Figure 7.11 Market Entry Options.
When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7.11 "Market Entry Options"). These options vary in terms of how much control a firm has over its operation, how much risk is involved, and what share of the operation’s profits the firm gets to keep.
Exporting Creating goods within a firm’s home country and then shipping them to another country where they are sold to customers by a local firm. involves creating goods within a firm’s home country and then shipping them to another country. Once the goods reach foreign shores, the exporter’s role is over. A local firm then sells the goods to local customers. Many firms that expand overseas start out as exporters because exporting offers a low-cost method to find out whether a firm’s products are appealing to customers in other lands. Some Asian automakers, for example, first entered the US market though exporting. Small firms may rely on exporting because it is a low-cost option.
Exporting often relies on huge cargo ships, such as this one docked in Cyprus.
Once a firm’s products are found to be viable in a particular country, exporting often becomes undesirable. A firm that exports its goods loses control of them once they are turned over to a local firm for sale locally. This local distributor may treat customers poorly and thereby damage the firm’s brand. Also, an exporter only makes money when it sells its goods to a local firm, not when end users buy the goods. Executives may want their firm rather than a local distributor to enjoy the profits that are made when products are sold to individual customers.
Creating a Wholly Owned Subsidiary.
A wholly owned subsidiary A business operation in a foreign country that a firm fully owns. is a business operation in a foreign country that a firm fully owns. A firm can develop a wholly owned subsidiary through a greenfield venture A foreign operation that a firm creates entirely by itself. , meaning that the firm creates the entire operation itself. Another possibility is purchasing an existing operation from a local company or another foreign operator.
Regardless of whether a firm builds a wholly owned subsidiary “from scratch” or acquires an existing operation, having a wholly owned subsidiary can be attractive because the firm maintains complete control over the operation and gets to keep all of the profits that the operation makes. A wholly owned subsidiary can be quite risky, however, because the firm must pay all of the expenses required to set it up and operate it. Kia, for example, spent $1 billion to build its US factory. Many firms are reluctant to spend such sums in more volatile countries because they fear that they may never recoup their investments.
Franchising.
Figure 7.12 Franchising: A Leading American Export.
Franchising An organization (called a franchisor) grants the right to use its brand name, products, and processes to other organizations (known as franchisees) in exchange for an up-front payment (a franchise fee) and a percentage of franchisees’ revenues (a royalty fee). has been used by many firms that compete in service industries to develop a worldwide presence (Figure 7.12 "Franchising: A Leading American Export"). Subway, The UPS Store, and Hilton Hotels are just a few of the firms that have done so. Franchising involves an organization (called a franchisor) granting the right to use its brand name, products, and processes to other organizations (known as franchisees) in exchange for an up-front payment (a franchise fee) and a percentage of franchisees’ revenues (a royalty fee).
Franchising is an attractive way to enter foreign markets because it requires little financial investment by the franchisor. Indeed, local franchisees must pay the vast majority of the expenses associated with getting their businesses up and running. On the downside, the decision to franchise means that a firm will get to enjoy only a small portion of the profits made under its brand name. Also, local franchisees may behave in ways that the franchisor does not approve. For example, Kentucky Fried Chicken (KFC) was angered by some of its franchisees in Asia when they started selling fish dishes without KFC’s approval. It is often difficult to fix such problems because laws in many countries are stacked in favor of local businesses. Last, franchises are only successful if franchisees are provided with a simple and effective business model. Executives thus need to avoid expanding internationally through franchising until their formula has been perfected.
Firms should own a thoroughly proven business model before franchising in other countries.
While franchising is an option within service industries, licensing One organization grants another the right to create its product, often using patented technology, in exchange for a fee. is most frequently used in manufacturing industries. Licensing involves granting a foreign company the right to create a company’s product within a foreign country in exchange for a fee. These relationships often center on patented technology. A firm that grants a license avoids absorbing a lot of costs, but its profits are limited to the fees that it collects from the local firm. The firm also loses some control over how its technology is used.
A historical example involving licensing illustrates how rapidly events can change within the international arena. By the time Japan surrendered to the United States and its Allies in 1945, World War II had crippled the country’s industrial infrastructure. In response to this problem, Japanese firms imported a great deal of technology, especially from American firms. When the Korean War broke out in the early 1950s, the American military relied on Jeeps made in Japan using licensed technology. In just a few years, a mortal enemy had become a valuable ally.
Estratégia nos filmes.
Can American workers survive under Japanese management? Although this sounds like the premise for a bad reality TV show, the question was a legitimate consideration for General Motors (GM) and Toyota in the early 1980s. GM was struggling at the time to compete with the inexpensive, reliable, and fuel-efficient cars produced by Japanese firms. Meanwhile, Toyota was worried that the US government would limit the number of foreign cars that could be imported. To address these issues, these companies worked together to reopen a defunct GM plant in Fremont, California, in 1984 that would manufacture both companies’ automobiles in one facility. The plant had been the worst performer in the GM system; however, under Toyota’s management, the New United Motor Manufacturing Incorporated (NUMMI) plant became the best factory associated with GM—using the same workers as before! Despite NUMMI’s eventual success, the joint production plant experienced significant growing pains stemming from the cultural differences between Japanese managers and American workers.
The NUMMI story inspired the 1986 movie Gung Ho in which a closed automobile manufacturing plant in Hadleyville, Pennsylvania, was reopened by Japanese car company Assan Motors. While Assan Motors and the workers of Hadleyville were both excited about the venture, neither was prepared for the differences between the two cultures. For example, Japanese workers feel personally ashamed when they make a mistake. When manager Oishi Kazihiro failed to meet production targets, he was punished with “ribbons of shame” and forced to apologize to his employees for letting them down. In contrast, American workers were presented in the film as likely to reject management authority, prone to fighting at work, and not opposed to taking shortcuts.
When Assan Motors’ executives attempted to institute morning calisthenics and insisted that employees work late without overtime pay, the American workers challenged these policies and eventually walked off the production line. Assan Motors’ near failure was the result of differences in cultural norms and values. Gung Ho illustrates the value of understanding and bridging cultural differences to facilitate successful cross-cultural collaboration, value that was realized in real life by NUMMI.
Joint Ventures and Strategic Alliances.
Within each market entry option described earlier, a firm either maintains strong control of operations (wholly owned subsidiary) or it turns most control over to a local firm (exporting, franchising, and licensing). In some cases, however, executives find it beneficial to work closely with one or more local partners in a joint venture or a strategic alliance. In a joint venture, two or more organizations each contribute to the creation of a new entity. In a strategic alliance, firms work together cooperatively, but no new organization is formed. In both cases, the firm and its local partner or partners share decision-making authority, control of the operation, and any profits that the relationship creates.
Joint ventures and strategic alliances are especially attractive when a firm believes that working closely with locals will provide it important knowledge about local conditions, facilitate acceptance of their involvement by government officials, or both. In the late 1980s, China was a difficult market for American businesses to enter. Executives at KFC saw China as an attractive country because chicken is a key element of Chinese diets. After considering the various options for entering China with its first restaurant, KFC decided to create a joint venture with three local organizations. KFC owned 51 percent of the venture; having more than half of the operation was advantageous in case disagreements arose. A Chinese bank owned 25 percent, the local tourist bureau owned 14 percent, and the final 10 percent was owned by a local chicken producer that would supply the restaurant with its signature food item.
Having these three local partners helped KFC navigate the cumbersome regulatory process that was in place and allowed the American firm to withstand the scrutiny of wary Chinese officials. Despite these advantages, it still took more than a year for the store to be built and approved. Once open in 1987, however, KFC was an instant success in China. As China’s economy gradually became more and more open, KFC was a major beneficiary. By the end of 1997, KFC operated 191 restaurants in 50 Chinese cities. By the start of 2018, there were approximately 3,200 KFCs spread across 850 Chinese cites. Roughly 90 percent of these restaurants are wholly owned subsidiaries of KFC—a stark indication of how much doing business in China has changed over the past twenty-five years.
As of early 2018, KFC was opening a new store in China every eighteen hours on average.