International Business Strategic Plan Memo Term Paper

Inter national Business Strategic Plan Memo - terminus Paper ExampleSeveral flairs are available through which a company lowlife enter a new commercialise. Some of the most common ways are exporting, licensing, direct enthronement and joint ventures. Each of these ways is discussed here in the context of Gordon Composites and Egypt. Exporting It is one of the most widely used strategies in which companies only sell their products in the foreign markets. Products are produced only in the denture country. It is a cost-effective dodging as no production facilities are required to be installed in the target country. All the costs are associated exclusively with marketing activities. The export mode is the only way of serving a market with minimum risk and high flexibility (Wagner, p. 3). There are dickens different types of exporting that we can adopt. These are direct and indirect exporting. In the case of direct exporting, products choke the end customers through independent d istributors. On the other hand, indirect exporting involves a foreign purchaser and/or an export management organization (Hisrich, p. 198). Gordon Composites has the opportunity to export its products in Egypt. Two of its basic products i.e. pothouse stock and laminates can be exported through independent distributors. Licensing Licensing essentially authorizes an organization in the target nation (foreign market) by using the properties of a licensor. Usually, these properties are intangible in nature. Patents, trademarks, and production techniques are some of these properties. such(prenominal) a strategy is likely to be an effective one in the context of maximizing receipts as the required investment amount is very low. Franchising, a special form of licensing, can to a fault be adopted in the process of entering into a new foreign market. In this strategy the franchise runs the business under the franchisors trade name (Klug, p. 39). Our company can enter the Egyptian market i n franchise mode as well.