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• Exporting strategies

  • Direct products are sold directly to buyers in target markets either through local sales representatives or distributors. Sales representatives promote their company's products and do not take title to the merchandise. Distributors take ownership of the goods (and the accompanying risk) and usually on-sell through wholesalers and retailers to end-users.
  • Indirect products are sold through intermediaries such as agents and trading companies. Agents may represent one or more indirect exporters in return for commission on sales
    • Export management companies export products on behalf of indirect exporters, operating either as an agent or distributor. They also gather market information, provide promotional advice, arrange shipping and documentation.
    • Export trading companies  provideservices in addition to those related to clients exporting activities including distribution and storage facilities, investment & countertrade
  • Countertrade is exporting goods and services which are paid for by other goods and services. Traditionally used by countries which lack reserves of convertible currency.

• Contractual strategies

  • Licensing market entry mode where one company which owns intangible property, grants an overseas company the right to use that property for a specific period of time. Licensed property may include patents, copyright, formulae, designs, trademarks and brand names. It is common in the manufacturing sector where companies are granted the right to use process technologies in return for royalty payments.
  • Franchising where one company supplies another with intangible property and other assistance over an extended period of time in exchange for compensation in the form of fees or royalties. More common in the service sector e.g. hotels, car rental companies and restaurant chains.

• Equity strategies

• • Strategic alliances where two or more businesses cooperate to achieve strategic objectives. May be for short, medium or long-term and can be established between a company, its suppliers, buyers and even competitors.
  • Joint ventures wherethe partners form a jointly-owned separate company to achieve specific business objectives. Forms include forward/backward integration, buyback and multi-stage.
  • Wholly owned subsidiary where a facility is fully owned and controlled by a single parent company through foreign direct investment. These may be established by purchasing an existing facility or developing an entirely new greenfield investment.