Chapter 5

Alternative Entry Strategies

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Formulating the Global Strategy
Global strategy as defined in international marketing as a
type of strategy guide to globalization

To develop a global strategy:

1.Scan the external environment (Pestle)

• Markets for the products/services
• Per capita income of the population
• Labor and raw material availability
• Exchange rates, exchange controls and tariff
• Inflation rate
• Competitive products/services available
• Positioning
• Political risk
Formulating the Global Strategy
2. Determine the strengths and
weaknesses of the company

SWOT Analysis – Strength ,

Weaknesses, Opportunities, Threats

3. Develop the goals and strategy

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5
Entry Strategies

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Timing of market entry
Timing of market entry
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2. Follower / Late Entrant

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Follower / Late Entrant
Disadvantages :

1.More competitors

2. Less market share

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Scale of entry
5-15
Foreign Market Entry modes
Foreign Market Entry modes
3. Management Contracts

• Contracting their management techniques and

skills.
• Without giving ownership of its resources to
foreigners

4. Direct foreign investments

1. Minority interest
2. Joint ventures
3. Majority interest
4. Mergers (100% ownership)
Foreign Market Entry modes
 Take 5
Kita Minum
Dulu
5-19