SUBMITTED BY-

SRISHTI RAINA
SIMRAN SAINI
SURBHI MOGHA
SWATI BONI
VANSHIKA MENDIRATTA
VIKRAM RANA
YASH GOEL
YUKTI PATHAK
1.EXPORTING

2. JOINT VENTURE

3. LICENSING

4. FRANCHISING

5.STRATEGIC ALLIANCE
EXPORT STRATEGY- A FOUR STEP MODEL

• 1. IDENTIFY A POTENTIAL MARKET

• 2. MATCH NEEDS TO ABILITIES

• 3. INITIATE MEETINGS

• 4. COMMIT RESOURCES
Degree of export
involvement
1.Direct exporting :
• Sales representatives
• Distributors

2. Indirect exporting :
• Agents
• Export management
companies
• Export trading
companies
Characteristics of joint
ventures
1 limited scope and duration
2 generally involve only two
firms
3. Each participant offers
something value
4.Joint production of single
products
5. Need not affect
competitive relationships
Steps in formation of joint venture
JOINT
VENTURES
Following are the reasons
for formation of joint
ventures:

1. Low cost of production

2. Access to technology

3. Market access

4. Risk sharing

5. Funding constraints
Disadvantages of joint venture
1.Large investment of resources
2.Cultural differences
3.Loss of confidentiality and
flexibility
4.Transfer pricing problems.
Successful joint
ventures
1 VOLVO-EICHER
2 TATA-DOCOMO

FAILED JOINT
VENTURES
1.CHRYSLER- DIAMLER
2.YAMAHA- ESCORTS
 LICENSING
:-Permission given for use of legally protected product.
:-Licensing (licensor) leases the right to use of it’s-
 Technology
 Work methods
 Patents
 Copyrights
 Brand names
 Trademarks
to another firm(licensee) in return for a fee.
 REASONS FOR LICENSING

 International expansion

 Commercialization of new technology

 Acceptance of the product is high

 New customers at a low price.

 TYPES OF LICENSING

Exclusive license
Non –exclusive license
Sub licenses NON- SUB
Cross licensing EXCLUSIVE LICENSES

CROSS
EXCLUSIVE
LICENSING
LICENSING
 ADVANTAGES OF LICENSING

 Passive income

 New business opportunities

 Reduction of risk

 Entry into foreign markets

 Self-employment opportunities
 DISADVANTAGES OF LICENSING

 Increases opportunities for IP theft

 Creates Dependency upon the licensor

 Creates Competition in marketplace

 Offered for a Limited time

 Damage of reputation
 EXAMPLES OF LICENSING

 Company using Microsoft Office on it’s computers.

 Company using Mickey Mouse on their products.

 Microsoft and canon

 Monopoly and Mc Donald's

 Victoria secret and NFL

LICENSING PROCESS
FRANCHISING
 What is Franchising?
• Franchising is a form of business by which the
owner of a product obtains distribution.

• A system for distributing products or services

through independent resellers.

• A format of mutual dependence.

 Some important terms.
FRANCHISOR
FRANCHISEE
FRANCHISE
 PURPOSE OF FRANCHISING:
To restore individual entrepreneurship.
To provide an easily accepted product or
service.
To allow consumers to buy good quality
products & services at the right price.
To provide entrepreneurs a means to enter
business with low capital investment & risk.
TYPES OF AGREEMENTS:
AGREEMENTS CONTD..
• Low cost low risk entry mode into new
market.

• Franchising allows rapid geographic

expansion.

• Franchisers can benefit from cultural

knowledge.
• Franchisers may find it cumbersome to
manage a plethora of franchises.

• Difficulty in maintaining consistency in

product quality & promotional messages.

• Loss of organisational flexibility.

 FRANCHISING
• Gives a greater control over the
sale of a product.
• Requires ongoing assistance from
franchiser.
• Primarily used in service
industries.
LICENSING
• Licensing in comparison of
franchising gives lesser control on
sales.
• Involves one time transfer of
property.
• Common in manufacturing
industries.