MgtMeans of International Processes: Upssala Model
Further investment cycles
Further resources are committed: Buy local distributors; invest in a local manufacturing unit. Initial commitment of resources: Find a local distributor, gain local management knowledge: customers, competitor regulatory conditions. Indirect Export
Firm------------Import/Export firm------------non- exclusive distributors/agent A firm wishing to expand abroad, but not wishing to commit many resources will use an import/export firm that will sell the firm products to one or more non-exclusive distributors/agent. The firm has little control on promotion/pricing. Firm---------------------agent (distributors) (usually exclusive) The firm export a production a foreign country by using an authorized (often exclusive) agent/distributor.. The firm will have to provide promotional and marketing strategies used by the agent. Licensing : A firm (license holder) may choose to sell to other firms located abroad the right to use its technology, brand name. The firm in question receives “licensing fees” and has a final say (incertation cares) on the quality/output of the licensee’s final product. Ex: Piere Cardin: paying for the license 150.000.000 to the owner. Franchising: A firm (franchise holder) may choose to give the legal riht to another firm to use its know-how brand name, logo for a fee. The franchise holder should normally provide the franchisees training, administrative and marketing support as well as methods of controlling quality. In certain cases the franchisee pays a flat fee and a % on sale realized, while in other cases only a commission in given. Joint Venture/Mgt/Service Contracts: A well-established firm in a given field may agree to provide managerial and/or technological know-how and personnel to a foreign firm on a contractional basis and for a specified time period. The firm will get in return “Mgt or Service Fees” and, in certain cases, will be in change of...
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