Choosing an entry strategy - Producing abroad
5 important questions on Choosing an entry strategy - Producing abroad
Why should a company product abroad?
Products can be adjusted to the demands of the local market
Faster deliveries
Evading import levies
What forms of franchising are there?
Hard franchising
Most decisions are take centrally and the commercial independence of the franchisee is very limited as a consequence.
Soft franchising
The franchisee has more influence and is free to determine part of the policy concerning product range, pricing and promotion.
What is contract manufacturing?
A company leaves its production to a local producer (often used in countries where tariffs are imposed). It is a good way to operate on foreign markets without the need to invest heavily in these markets.
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Why would an international company choose for assembly as an entry strategy?
Which sorts of assembly are there?
- Management contracting
- Joint ownership
- Local production
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