Page 45 - Kirin Holdings Teaching Note
P. 45
Market entry modes
Market entry may be achieved in a variety of ways. These
include direct or indirect exporting, licensing, joint ventures
and strategic alliances and foreign direct investment such as
wholly owned subsidiaries, mergers and acquisitions. For
Kirin Holdings historically exporting was the primary market
entry strategy with some equity stakes but short of
controlling stakes. The first major acquisition, Brazil, was a
failure.
Different market entry strategies
High Wholly owned subsidiary
Acquisition
IMPEX
Assembly operations
Joint venture
Strategic alliance
Licensing
Contract manufacture
Levels of commitment, Direct marketing
control and risk
Franchising
Distributors and agents
Sales force
Trading companies
Export management companies
Piggybacking
Low Domestic purchasing
