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International Marketing

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International Marketing ­ MKT630
VU
Lesson # 27
MODES OF ENTRY INTO INTERNATIONAL MARKETS
Managing Joint Ventures
As there are good business and accounting reasons to create a joint venture (JV) with a company that
has complementary capabilities and resources, such as distribution channels, technology, or finance,
joint ventures are becoming an increasingly common way for companies to form strategic alliances. In a
joint venture, two or more "parent" companies agree to share capital, technology, human resources, risks
and rewards in a formation of a new entity under shared control.
Important Factors to be Considered Before a Joint Venture is Formed
screening of prospective partners
joint development of a detailed business plan and shortlisting a set of prospective partners based
on their contribution to developing a business plan
due diligence - checking the credentials of the other party ("trust and verify" - trust the
information you receive from from the prospective partner, but it's good business practice to
verify the facts through interviews with third parties)
development of an exit strategy and terms of dissolution of the joint venture
most appropriate structure (e.g. most joint ventures involving fast growing companies are
structured as strategic corporate partnerships)
availability of appreciated or depreciated property being contributed to the joint venture; by
misunderstanding the significance of appreciated property, companies can fundamentally
weaken the economics of the deal for themselves and their partners.
special allocations of income, gain, loss or deduction to be made among the partners
compensation to the members that provide services
Joint venture decay and failure:
Joint ventures seem to have a life cycle
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At a certain point in the life span of the joint venture, the high level of mutual interest which
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prevailed at the time of its formation grows weaker
There are several principal causes of failure or difficulty in joint venture partnerships
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the failure of strategic vision
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the failure to evaluate the intentions and capabilities of the local partner
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a classic error is made in the choice of a distributor
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believing gabout the partner/s without seeing
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failure to understand the strategic logic of one's own partner
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haste in negotiation
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lack of organizational support for the JV
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staff not prepared to deal with the political and cultural complexity of the local government
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Drivers behind successful joint ventures:
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Pick the right partners
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Establish clear objectives from the beginning
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International Marketing ­ MKT630
VU
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Bridge cultural gaps
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Top management commitment and respect
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Incremental approach works best
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Table of Contents:
  1. OVERVIEW OF INTERNATIONAL MARKETING:Domestic marketing, Multinational marketing, Globalization of markets
  2. INETRNATIONAL MARKETING PROCESS:Situation Analysis, Implementation and Control, Relationship
  3. INETRNATIONAL MARKETING PROCESS:The Product Concept, The Societal Marketing Concept
  4. INETRNATIONAL MARKETING PROCESS
  5. ENGAGING IN INETRNATIONAL MARKETS:Expansion of technology, Merchandize export and import
  6. INTERNATIONAL TRADE & INVESTMENT THEORIES:Theory of Comparative Advantage, Country Similarity Theory
  7. INTERNATIONAL TRADE & INVESTMENT THEORIES:Global Strategic Rivalry Theory,
  8. INTERNATIONAL MARKETING INFORMATION REQUIREMENTS:Foreign exchange info
  9. INTERNATIONAL MARKETING INFORMATION REQUIREMENTS:The Product
  10. FOREIGN NATIONAL ENVIRONMENTS:Political systems in the world, Political risks in international markets
  11. FOREIGN NATIONAL ENVIRONMENTS:Types of legal systems,
  12. FOREIGN NATIONAL ENVIRONMENTS:Conciliation, Mediation, Global relevance
  13. ROLE OF GOVERNMENTS IN INTERNATIONAL MARKETS:Industry-level needs, Promotion of exports by governments
  14. INTERNATIONAL CULTURAL AND SOCIAL ENVIRONMENTS:The concept of culture, Attitudes & beliefs,
  15. INTERNATIONAL CULTURAL AND SOCIAL ENVIRONMENTS:Culture is a human medium
  16. DETERMINING EXPORT POTENTIAL IN INTERNATIONAL MARKETS:Political Environment
  17. DETERMINING EXPORT POTENTIAL IN INTERNATIONAL MARKETS:Product Potential
  18. INTERNATIONAL MARKETING RESEARCH PROCESS:market structure, Implementing the research plan
  19. INTERNATIONAL MARKETING RESEARCH PROCESS:Identify alternative information sources
  20. INTERNATIONAL MARKETING RESEARCH PROCESS:Issues with primary global research:
  21. INTERNATIONAL MARKETING RESEARCH PROCESS:Problems with data, Comparative Analysis
  22. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Export intermediaries, Export and import management
  23. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Licensing contract, Licensing risks
  24. MODES OF ENTRY INTO INTERNATIONAL MARKETS:The franchiser’s balance,
  25. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Forms of countertrade, Specialized entry modes
  26. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Demand factors, Political factors
  27. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Drivers behind successful joint ventures
  28. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Distribution agreements, Critical mass & optimism traps
  29. INTERNATIONAL STRATEGIC ALLIANCES:Impetus for international alliances, Management of strategic alliances
  30. INTERNATIONAL CONSUMER MARKETS:Model of Consumer BehaviorThe Buyer Decision Process
  31. INTERNATIONAL BUSINESS MARKETS:Nature of buying unit, Major influences on international business buyers
  32. INTERNATIONAL TARGET MARKETING:Market segmentation, Market positioning
  33. INTERNATIONAL MARKET SEGMENTATION:Geographic, Behavioral, Situational factors
  34. INTERNATIONAL MARKET SEGMENTATION:Basis for country segmentation, Stages of economics development
  35. INTERNATIONAL MARKET SEGMENTATION:Cultural Variables,
  36. INTERNATIONAL MARKET SEGMENTATION:Market coverage strategy, Socio-economic variables
  37. INTERNATIONAL MARKETING MIX - PRODUCT POLICY:Individual product decisions, Branding
  38. INTERNATIONAL MARKETING MIX – PRODUCT POLICY:
  39. INTERNATIONAL MARKETING MIX - PRODUCT POLICY:Modular Approach
  40. INTERNATIONAL MARKETING MIX – PRODUCT POLICY:Issues in labeling, Pricing, Distribution
  41. INTRODUCING NEW PRODUCTS IN INTERNATIONAL MARKETS:The new product development process
  42. PRICING IN INTERNATIONAL MARKETS:Factors influencing international pricing,
  43. ITERNATIONAL MARKETING CHANNELS:Channel membership, Vertical marketing, Control over distribution
  44. PROMOTING IN INTERNATIONAL MARKETS:Advertising, Direct marketing, Public Relationing
  45. REVISION