Indirect exporting - Entry StrategiesCorporate Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Entry Strategies

• Market entry strategy is influenced by the firm and product characteristics and the domestic and international market characteristics.

Foreign Market Entry and Operations Strategies

Exporting

• Direct Exporting.

• Indirect Exporting.

Contractual Agreement

• Licensing & Franchising.

• Strategic Alliance.

• Contract Manufacturing.

Production facility in foreign

market.• Assembly Operations.• Wholly owned

manufacturing facility.• Joint Ventures.

Mergers and Acquisitions

Indirect exporting

The market-entry technique that offers the lowest level of risk and the least market control is indirect export, in which products are carried abroad by others.

Indirect exporting

The firm is not engaging in international marketing and no special activity is carried on within the firm; the sale is handled like domestic sales

Indirect exportingThere are several different methods of indirect exporting: – The simplest method is to deal

with foreign sales through the domestic sales organisation.

– A second form of indirect exporting is the use of international trading companies with local offices all over the world.

– A third form of indirect exporting is the export management company located in the same country as the producing firm and which plays the role of an export department.

ExampleThe mumbai based American Dry Fruits (ADF) which began selling a range of packaged foods liked Chutneys, Spices, Canned vegetables, ready to eat dals, etc under different brand names later moved to other countries with large Indian population.