CAGE framework:

local responsiveness
country of origin. is export easily possible from the gobally integrated
facilitties we have

Freedom wrt each param.

Mode of entry:
what if lil demand

Equity:
JVs

Non-equity: loan cannot be a "mode"

(franchisee)
tata, starbucks?

80-85%: white label exporter.

1.Export entry mode.

-Direct Exporting
-Indirect Exporting: lack of facilities. Like itc purchasing tonnes & send it
through sail.
EU:(highly dependent on imports), Eg. Uncle's __ rice brand
2. Contractual Mode

-Licensing :
a) Savalon(J&J), price set by distributors(ITC)
b) Vanhuesen Allen Solly, _licencing rights_ bought by Aditya birla FOR INDIA
DOUBT
-Franchisiing(direct/indirecting): Pizza hut: Direct etc.
(old spice/livon) for Marico
Products/ services both. but outdated concept

Brand image.
Less control. as flavours, size, price points is fixed

3. Investment Entry Mode

- RO(Representative Office)
-Wholly Foreign Owned Enterprise
-JV

Control

JV: Vi(33% of 74%)(~25%)

Lion's share.
NOT MANDATORY:Acquisition can be done when >50%

Merger: leads to a new Legal Entity. Acquistion(acquirer's id continues)

bhushan steel (brownfield)

Risk v/s Control

external 100% , 0% risk

internal 100% , high risk