International Market Entry and Expansion via Independent or Integrated Channels of Distribution

1987 ◽  
Vol 51 (1) ◽  
pp. 71-82 ◽  
Author(s):  
Erin Anderson ◽  
Anne T. Coughlan
Keyword(s):  
Vertical Integration ◽  
Western Europe ◽  
Distribution Channel ◽  
Foreign Market ◽  
Industrialized Countries ◽  
Foreign Markets ◽  
Difficult Decision ◽  
Channel Choice ◽  
Key Variables ◽  
Sales Agents

Manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (company salesforce and company distribution division) or by independent intermediaries (outside sales agents and distributors)? This is an issue of downstream vertical integration. The authors explore the issue through an empirical investigation of distribution channel choice in foreign markets by U.S. semiconductor companies. Using original interview data, they develop scales to measure key variables. With these measures they build a logistic regression model of what factors affect the form of the distribution channel chosen in various foreign markets. The results indicate that integration is associated with the degree of transaction specificity of assets in the distribution function and whether or not the product being introduced is highly differentiated. There is evidence that the product will be sold through whatever channel is already in place, if any. Further, American firms seem more likely to integrate the distribution channel in highly developed industrialized countries (Western Europe) than in Japan and Southeast Asia, which are more culturally dissimilar. Implications for managers faced with a channel choice are explored.

The Role of After-Sales Service in International Marketing

1997 ◽  
Vol 5 (4) ◽  
pp. 11-28 ◽  
Author(s):  
Gulden Asugman ◽  
Jean L. Johnson ◽  
James McCullough
Keyword(s):  
Market Research ◽  
Market Competition ◽  
International Marketing ◽  
Distribution Channel ◽  
Foreign Market ◽  
Foreign Markets ◽  
Relative Product ◽  
Marketing Activities ◽  
The Relationship

This study develops and tests a conceptual framework relating internationalization and after-sales service (AS) in international marketing activities. Specifically, the study tests the relationship between internationalization, importance of AS accompanying durable export products, and actual AS offerings in foreign markets. Level of foreign market competition, relative product quality, and marketer power in the foreign distribution channel were investigated as moderators in the relationship between AS importance and services actually offered in the foreign market. Research results generally support the hypotheses, suggesting that as firms internationalize, they come to understand the role of AS in international activities. However, there are factors that facilitate and/or inhibit the marketer's actual offering of these services.

scholarly journals Marketing strategies of Polish companies on foreign markets

Management ◽  
2018 ◽  
Vol 22 (2) ◽  
pp. 110-120
Author(s):  
Wojciech Grzegorczyk
Keyword(s):  
Market Research ◽  
Distribution Channel ◽  
Foreign Market ◽  
Marketing Strategies ◽  
The Internet ◽  
Specific Character ◽  
Foreign Markets ◽  
Pricing Policy ◽  
Research Findings ◽  
Initial Research

Summary In the years 2017-2018 the Marketing Faculty of Łódź University conducted a research project “Marketing strategies of companies based in Łódź Voivodeship on foreign markets”. The aim of this text is to present the initial research findings strategies implemented by surveyed companies on foreign markets. The examined companies seldom attempted to conduct the foreign market research and the marketing strategy that they used was strictly related to the prevailing form of expansion into foreign markets, i.e. export. Both the product and the pricing policy were adapted to the specific character of the foreign market. Activities in the area of distribution were limited to indirect export and they were not initiated by the examined companies. The prevailing majority of companies used the Internet, trade fairs and exhibitions in their promotional activities. The intermediaries in the distribution channel were responsible for subsequent promotional activities. They involve marketing strategies typical for small and medium companies and their content depends on the intermediaries in the distribution channel on foreign markets.

scholarly journals A Dyadic Perspective on Determinants of Entry Choices in the Global Hospitality Industry

2017 ◽  
Vol 53 (4) ◽  
pp. 77-92
Author(s):  
Kun Yang ◽  
John D. Buschman
Keyword(s):  
Brand Equity ◽  
Market Segmentation ◽  
Hospitality Industry ◽  
Foreign Market ◽  
Resource Dependency ◽  
Foreign Markets ◽  
Specific Knowledge ◽  
Firm Level ◽  
New Form ◽  
Management Contract

AbstractThis paper discusses the firm-level determinants of international hotels’ foreign markets entry choices, contrasting acquisition with management and franchise contracts, based on a resource-dependency perspective and appropriability theory. It points out that brand equity, relatedness of products and market segmentation, partner-specific knowledge of hotels, international experience, and the duration of proprietary knowledge impact hotels’ decisions on how to enter a foreign market. In addition, the paper suggests the existence of entry choices sequence favorable to acquisition probability after the end of management contract when the franchisors’ or management companies’ proprietary knowledge attenuates. Contract activity is likely to be renewed after the acquisition, once the management company has established a new form or a higher level of proprietary knowledge.

PROBLEMS OF SMALL AND MEDIUM-SIZED BUSINESS OF KHABAROVSK KRAI IN ENTERING THE FOREIGN MARKET

2021 ◽  
pp. 15-20
Author(s):  
E. A. Aleksandrova ◽  
T. S. Boiko
Keyword(s):  
Foreign Market ◽  
Innovative Development ◽  
Foreign Markets ◽  
Khabarovsk Krai ◽  
Systemic Problems

The article analyzes the problems of small and medium-sized business of Khabarovsk Krai, in particular, the problems associated with the process of entering the foreign markets. It is concluded that the key problems of small and medium-sized business of Khabarovsk Krai are the issues of logistics and innovative development. These are the strategic and systemic problems

Distribution Channel Choice of New Entrepreneurial Ventures

2010 ◽  
Vol 35 (4) ◽  
pp. 683-708 ◽  
Author(s):  
Malte Brettel ◽  
Andreas Engelen ◽  
Thomas Müller ◽  
Oliver Schilke
Keyword(s):  
Distribution Channel ◽  
Entrepreneurial Ventures ◽  
Channel Choice

scholarly journals MOTIVATION BEHIND THE FOREIGN EXPANSION OF ŁÓDŹ VOIVODESHIP COMPANIES

2019 ◽  
Vol 18 (3) ◽  
pp. 29-36
Author(s):  
Wojciech Grzegorczyk
Keyword(s):  
Foreign Market ◽  
Primary Research ◽  
Foreign Markets ◽  
New Markets ◽  
Market Expansion ◽  
Innovative Solutions ◽  
Strategic Goals ◽  
The Subject ◽  
Strategic Motivation

The aim of the article is to present the motivation behind foreign expansion of small and medium-sized enterprises (SMEs) based in Łódź Voivodeship. In order to carry out the project the researchers analysed the literature on the subject and conducted primary research on the sample of the selected companies with the use of survey and interview questionnaires that the managers of the companies surveyed responded to in 2017 and 2018.The decisions to enter foreign markets also resulted from the fact that companies wanted to increase their turnover and profits and in some cases, as the research proved, they were also motivated by factors concerning the companies productivity. Companies perceive foreign market expansion as an opportunity to expand their product offer, enter new markets, implement innovative solutions or achieve the previously set strategic goals, which is referred to as the so called strategic motivation.

scholarly journals Planning a market exit strategy for manufacturers of consumer goods when entering foreign markets

2017 ◽  
Vol 1 (1) ◽  
pp. 7
Author(s):  
Maik Döring
Keyword(s):  
Market Entry ◽  
Planning Process ◽  
Foreign Market ◽  
Consumer Products ◽  
Market Penetration ◽  
Exit Strategy ◽  
Foreign Markets ◽  
Worst Case ◽  
Market Exit ◽  
Planning Processes

Aim: The internal market for manufacturers of consumer products companies is often too small in order to grant long-term success. Therefore, companies expand and enter foreign markets. This paper presents a planning process for market penetration for the selected foreign market, which will show the possibility of a withdrawal and shows also whether an exit scenario is planned by manufacturers of consumer products and when companies tend to think about a market exit.Design / Research methods: First, the literature was studied. Based on this, hypothesis were prepared. This was followed by a telephone survey of decision-makers from German manufacturers of the consumer products companies. Conclusions / findings: A planning process for market penetration was developed, which shows next to the market entry also the market exit. Additional this paper shows that manufacturers of consumer products companies can be better prepared for a market exit than companies without an exit strategy, in particular, if the manufacturer sets out relevant economic parameters for the foreign market which determine whether to remain in the market or leave.Originality / value of the article: When analysing literature on planning processes for market entry, it becomes clear that an exit strategy is not planned. This may indicate that the authors did not consider a market exit and/or anticipate this as a worst case in their market entry assumption.Implications of the research: The last market entry of the surveyed companies usually occurred recently. For market exit results to be determined, a further consultation of the companies examined should be undertaken over a longer period of time.

On the Internationalization of the Wireless Telecommunications Industry

2011 ◽  
pp. 197-215 ◽  
Author(s):  
Steven R. Powell
Keyword(s):  
Service Providers ◽  
Foreign Market ◽  
Telecommunications Industry ◽  
Weighting Scheme ◽  
Foreign Markets ◽  
Wireless Telecommunications ◽  
France Télécom ◽  
Different Characteristics ◽  
A Company

Companies can benefit from diversifying internationally. This paper analyzes the internationalization efforts of six major European wireless telecommunications service providers: Telefonica, Deutsche Telekom, France Telecom, Vodafone, Telenor and TeliaSonera. Although all six companies have invested heavily in foreign markets, their internationalization paths have not been the same, resulting in foreign market portfolios with different characteristics. Utilizing a proportionate customer weighting scheme based on the number of subscribers controlled by a company in each market, the paper examines how the companies compared in 2007 versus 2002 in their extent and scope of internationalization and in the attractiveness of their foreign market portfolios with respect to some key growth, profitability, and risk market characteristics.

On the Internationalization of the Wireless Telecommunications Industry

2009 ◽  
Vol 1 (4) ◽  
pp. 16-36 ◽  
Author(s):  
Steven R. Powell
Keyword(s):  
Service Providers ◽  
Foreign Market ◽  
Telecommunications Industry ◽  
Weighting Scheme ◽  
Foreign Markets ◽  
Wireless Telecommunications ◽  
France Télécom ◽  
Different Characteristics ◽  
A Company

Companies can benefit from diversifying internationally. This article analyzes the internationalization efforts of six major European wireless telecommunications service providers: Telefonica, Deutsche Telekom, France Telecom, Vodafone, Telenor and TeliaSonera. Although all six companies have invested heavily in foreign markets, their internationalization paths have not been the same, resulting in foreign market portfolios with different characteristics. Utilizing a proportionate customer weighting scheme based on the number of subscribers controlled by a company in each market, the article examines how the companies compared in 2007 versus 2002 in their extent and scope of internationalization and in the attractiveness of their foreign market portfolios with respect to some key growth, profitability, and risk market characteristics.

The pattern of pesticide regulation in Western Europe

1973 ◽  
Vol 7 (3) ◽  
pp. 91-96 ◽  
Author(s):  
N Wright
Keyword(s):  
Developing Countries ◽  
Western Europe ◽  
Industrialized Countries ◽  
International Agencies ◽  
Pesticide Regulation ◽  
Pesticide Usage ◽  
Pesticide Registration

The increasing scope and complexity of pesticide registration procedures impose strains on the resources of governments and industry. International uniformity would bring benefit to both sides but is harder to achieve in industrialized countries which have to modify long-established laws than in developing countries which can model new schemes on experience elsewhere or take advice from international agencies such as FAO. Active cooperation by industry at both national and international levels is advocated in framing realistic, scientifically-based regulations and in concentrating on those aspects of pesticide usage which pose real, not hypothetical hazards.

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