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WHY GO GLOBAL?

WHY GO GLOBAL?. PROACTIVE REASONS Increased profits Unique goods or services Technological advantage Exclusive market information Owner-manager desire Economies of scale. WHY GO GLOBAL?. REACTIVE REASONS

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WHY GO GLOBAL?

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  1. WHY GO GLOBAL? • PROACTIVE REASONS • Increased profits • Unique goods or services • Technological advantage • Exclusive market information • Owner-manager desire • Economies of scale

  2. WHY GO GLOBAL? • REACTIVE REASONS • 1. Competitive pressures2. Declining domestic demand3. Overcapacity4. Proximity to customers5. Counterattack foreign competition

  3. GLOBAL STRATEGIES • EXPORT STRATEGIES • CONTRACTUAL STRATEGIES • INVESTMENT STRATEGIES

  4. EXPORT STRATEGIES • INDIRECT • DIRECT AGENT / DISTRIBUTOR • DIRECT BRANCH / SUBSIDIARY

  5. CONTRACTUAL STRATEGIES • LICENSING • FRANCHISING • TECHNICAL AGREEMENTS • SERVICE CONTRACTS • MANAGEMENT CONTRACTS • CONSTRUCTION / TURNKEY CONTRACTS • CONTRACT MANUFACTURE • COUNTERTRADE AGREEMENTS

  6. INVESTMENT STRATEGIES • SOLE VENTURE • NEW ESTABLISHMENT • ACQUISITION • JOINT VENTURE • NEW ESTABLISHMENT • ACQUISITION

  7. Global Franchise Explosion • Increased disposable income • Rising educational levels • Universal cultural trends • More women entering workforce • Smaller families with more incomes • Enthusiasm of younger generations • Demand for quality & service

  8. Why Franchise? • More rapid expansion at lower capital cost • Motivated owner/operators • Economies of scale and operating efficiencies • Revenue • Location • Flexibility

  9. Barriers to Global Franchising • Culture, Culture, Culture! • Location, Location, Location! • Intellectual Property Protection • Political/Legal Framework • Availability of Raw Materials • Availability of Skilled Managers • Education and Training • Quality Control • Marketing Strategy

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