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.


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 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.