Marketing Assignment 2
This assignment will be ground on description of the potential critical success factors when entering in an international market. The issues in the context of artistry in international market and will go ahead to justify why the critical success factors must be assessed and understood before it must be approved.
To be more competitive in the market, there are some modes of entry into a foreign market that the company must put into consideration.
Joint ventures, leasing, alliance, franchising and more
Joint venture, is an agreement between two parties, to develop for a finite, a new entity and asset by contributing equity, that is to say that, two company has to come together to form a joint venture (Nayab, 2010) (Anonymous, 2010).
Build up a strong a strong name, if one part is a foreigner.
Both sides have to bring ideas.
Sharing of risk
Experts from both sides
Combination of technology
Sharing of vital information's from other parties.
Conflict over asymmetric investments
If, how and when the relationship want to terminate
Mostly international licensing is an agreement, to manufacture or sell products. The licensing gives them the legal right from the authority body, it can be yearly or as a percentage revenue on the time of royalties (Filling An internation patent for maximumu protection, 2007) (Anonymous, Canada Business Network, 2012).
More percentage of the millions make in a year in sales at Calvin Klein Inc comes from the licensing of a underwear's and jeans and perfume (Jack, 2011).
After IBM emerging its efforts to licensing, its thousands of technology patents a few years ago now attribute $1 billion in sales a year (Jack, 2011).
Easy expand without risk and capital.
Much attraction for the other companies...