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1、Chapter10StrategyforenteringinternationalmarketThe relationship between operational strategy and core ideas of an organization 企业经营的核心理念是卓越企业的保护神，卓越企业需要的思想和理念 eg:(1)Disneyland (2)Wal-mart (3)Merck Question:如何理解“卓越是一种成功的平凡,优秀仅是平凡的成功”？一.Strategic factors1.Concept of strategy Strategythe direction and
2、scope of an organization in the long term,is to achieve competitive advantage for the organization through the configuration of its internal resources in the changing environment and to meet the needs of markets and organization owners -Johnson&Scholes2.Strategic factorsA.Appraising products in fore
3、ign markets through analyzing and culling B defining objectives in target market establishing standards and analyzing environmental factorsC.Choosing the modes of entry there are four modesD.formulating marketing planE.implementing and controlling to modify the deviation between performance and obje
4、ctives二.Modes of entering foreign marketModes of entering foreign market refers to the systematic plan of product,technology,know-how and other resources.In foreign market,a firm may carry out different modes of entryCasestudy1:Starbuckscoffee(1)在全球普遍推行三种商业组织结构：合资公司；许可协议；独资自营(2)四种合作模式：a.100ownership
5、 in UK,Thailand,Australia b.50%ownership in Japan,South korea c.5%ownership shanghai,Hongkong,d.no ownership,just permits in Singapore(3)中国市场有三家合作伙伴 Casestudy2:JCPenney JCPenneyisanAmericandepartmentstorechainwith1095locationsin49U.SstatesandPuertoRico.Inadditiontosellingconventionalmerchandise,JCPe
6、nneystoresoftenhouseseveralleaseddepartmentssuchasSephora,SeattlesBestCoffee,salons,opticalcenters,portraitstudios,andjewelryrepair.MostJCPenneystoresarelocatedinSuburbanshoppingmalls.Before1966,mostofitsstoreswerelocatedindowntownareas.Asshoppingmallsbecamemorepopularduringthelatterhalfofthe20thcen
7、tury,JCPenneyfollowedthetrendbyrelocatinganddevelopingstorestoanchorthemalls.Inmorerecentyears,thechainhascontinuedtofollowconsumertraffic,echoingtheretailingtrendofopeningsomefreestandingstores,includingsomenextdoortocompetitors.Certainstoresarelocatedinpowercenters.ThecompanyhasbeenanInternetretai
8、lersince1998.Ithasstreamlineditscataloganddistributionwhileundergoingrenovationimprovementsatstorelevel.Strategyforenteringforeignmarkets:(1).100%ownership in Mexico&Chile(2).permits in Dubai,UAE(3).ajoint ventures in Latin America(4).Internet retailerQuestion:why do global firms carry out different
9、 strategies in different markets?What factors should be taken into consideration?Modesofenteringforeignmarkets:1.ExportingIt is the most traditional and well established form of operating internationally direct exporting indirect exportingQuestion:(1)whats the differences between them?(2)advantages
10、and disadvantages of exporting2.Contract entering(1)Licensing(许可证模式）licenseeLicensorA seller(the licensor)grants a foreign firm(the licensee)the rights to a process,patents,or trademarks in exchange for a license fee or royalty.image oriented products(company)Question:(1)what are included in image-o
11、riented products?(2)merits and drawbacks (2).franchise(特许经营模式）Franchise system-distribution system in which a parent company(usually the manufacturer)grants a wholesaler franchiser franchisee or retailer the rights to sell the companys products exclusively in a certain area.the agreement,which cover
12、s many additional details,basically provides for the following:use franchisers name,color,design use method of doing business provision of training selling raw materials provision of advertising materials payment of an initial fee payment of royalty eg:Starbucks coffee-partnership(伙伴企业）GleeFeeMeFree
13、SeeWeDependenceIndependenceInterdependence(Curve of satisfaction)SixEfactors:thecurveofsatisfaction3 investment A.Joint venture/shared investment Under a shared investment arrangement,a foreign investor join with local investor to establish a local enterprise in which they share ownership and contro
14、l in proportion to the amount each has invested.Advantages:Disadvantages:very significant costs of control and coordination associated with working with a partner;cross-cultural differencessharingtheriskcombiningdifferentvaluechainstrengthB direct investment Full undertaking and control of all inter
15、national operations,100%ownership may be achieved by start-up or acquisition(M&A),the company own production,marketing and other facilities in foreign countries without any partners.In some cases,international operations are organized into Wholly subsidiary.the firm has all the benefits and risks as
16、sociated with ownership.Merits:marketing plans are sensitive to local needssavings in laborDismerits:the possibility of nationalistic acts are raised and government restrictions are likely to be more stringentEg:五粮液进入国际市场的战略选择（与出口国当地企业的联合）4.Internet four modes of e-businessa)business to customer(B2C
17、)b)business to business(B2B)c)customer to customer(C2C）d)online to offline(O2O)三.Factors affecting modes of entryIncluding external and internal factorsA.MarketIf:target market is sizable and potential-investment(why)on the contrary-exporting or contractIf:competition in target market is sporadicexp
18、oring(why)on the country-monopolistic or oligpolycontract or investment(why)B.EnvironmentIf:stable government,legal,free trade policyinvestmentComparison betweem China and IndiaC.ProductionIt refers to the price and availability of production factors which affect transportation,o.peration management
19、,cost and q:uality of products.D.Home-country factorsCompetition structure,stuff and environmentIf availability of cheap stuff-exportingE.Products Eg:service reqirementF.Resources and efforts Availability of enough funds,advanced technology and experienced international marketingFDISupplementary:eg:一件产品多国造，除了品牌都转包 外包让全球经济变样外包让全球经济变样 (outsourceandsubcontract)