Foreign Markets entry strategy-an overview

Direct Export

The organisation produces their product in their home market and then sells them to customers overseas.

Indirect Export

The organisations sells their product to a third party who then sells it on within the foreign market.

Licensing

Another less risky market entry method is licensing. Here the Licensor will grant an organisation in the foreign market a license to produce the product, use the brand name etc. in return that they will receive a royalty payment.

Franchising

Franchising is another form of licensing. Here the organisation puts together a package of the ‘successful’ ingredients that made them a success in their home market and then franchise this package to overseas investors. The Franchise holder may help out by providing training and marketing the services or product. McDonalds is a popular example of a Franchising option for expanding in international markets.