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CH 9. ENTRY STRATEGIES

CH 9. ENTRY STRATEGIES. Licensing Contract Mfg. & Franchising Direct Investment Joint Ventures Strategic Alliances. Advantages Costs less to enter Less risky Strong brand image. Disadvantages Less profits Less control Licensee can copy. Licensing.

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CH 9. ENTRY STRATEGIES

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  1. CH 9. ENTRY STRATEGIES • Licensing Contract Mfg. & Franchising • Direct Investment • Joint Ventures • Strategic Alliances

  2. Advantages Costs less to enter Less risky Strong brand image Disadvantages Less profits Less control Licensee can copy Licensing

  3. Advantages Brand name spreads Less risky Quick entry Disadvantages Management problem Not much profits Political & Legal issues Contract Mfg. & Franchising

  4. Advantages Greater profits Greater control Build up equity Disadvantages High risk Can loose money Not a popular way Direct Investment

  5. Advantages Risk sharing Learn new markets Synergy The only way to enter Disadvantages Control & coordination Potential for conflicts and divorce Joint Ventures (GSPs)

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