.then those goods are exported to France. For exp. If goods made in India are sold in France .Export Export means selling the home country’s goods/services in a foreign country.

transported from one country to another or country in a legitimate fashion. . typically for use in trade. an export is any good or commodity.Export Strategy Export strategy is to ship commodities to other places or countries or sale or exchange. In economies.


Reasons ► Increase sales & profits ► Create domestic jobs ► Enhance competitiveness ► More stability ► Lower unit cost ► New ideas ► Access to foreign exchange ► Gain global market share ► Reduce dependence on existing ► Risks unique to exporting domestic markets .

Types of export strategies ► Direct selling in export strategy ► Indirect selling in export strategy ► Licensing strategies ► Franchising strategies .

.Strategies ► Direct selling Direct export are goods & services that are sold to an independent party outside of the exporter’s home country ► Indirect selling Indirect export is simply selling goods to or through & independent domestic intermediary in their own home country then intermediaries. erport the products to customers foreign markets.

trademark. know how or some other skill provided by the licensor.” .Licensing Strategies ► Licensing is defined as “ the method of foreign operation whereby a firm in one another country agrees to permit a company in another country to use the manufacturing processing.

► It is a quite similar to the “franchise” operation coca-cola is an excellent. united Bottlers have the license to make coke. . ► Example of licensingIn zimbabwe.

Advantages ► Good way to start in foreign operations & open the door to low risk manufacturing relationships. . ► Capital not tied up in foreign operation. ► Linkage of parents & receiving partner interests means both get most out of marketing effort. ► Options to buy into partners exists or provision to take royalities in stock.

process or trademark. . ► Potential returns from marketing & manufacturing may be lost. ► Require considerable fact finding. investigation & interpretation. planning. ► Partners develop know how & so license is short. specific product.Disadvantages ► Limited form of participation to length of agreement.

Tricon global restaurants & hilton hotels have all used franchising to build a presence in foreign markets. The franchising bears most of the costs & risks of establishing foreign locations. Franchising has much the same advantages as licensing.Franchising strategies ► While licensing works well for manufactures franchising is often suited to the global expansion efforts of service & retailing.foreign franchisees do not always exhibit strong commitment to consistency & standardization. . the franchiser has to expand only the resource to recruit. The big problem a franchiser faces is maintaining quality control. Mc Donald’s. train & support franchisees.perhaps because the local culture does not stress or put much value on the same kind of quality concerns.