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PRESENTATION ON EXPORT STRATEGY PRESENTED BYMONIKA & RENU ROLL NO.- 03 , 04 M.B.A(5.5)

.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.

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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.

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