Fragebogen Teil 6

by Kay T.

6.1 What are pull and push factors for internationalization?

Push and pull factors are factors that influence the choice of The market you will enter

Push factors are negative conditions or circumstances in an individual's current location that motivate them to leave and move elsewhere.

These can include things like poverty, conflict, persecution, or a lack of job opportunities.

Pull factors (attractive), on the other hand, are positive conditions or circumstances in a new location that attract people to move there. These can include things like better job prospects, higher salaries, a better standard of living, or the opportunity to be closer to family or friends.

6.2 Please explain the waterfall market entry strategy vs. the sprinkler strategy

Waterfall market strategy: Focuse on one market, until get a leader then start with another market. After Approach to penetrate markets step by step over years.

Entry—> Germany (after 2 years)—>Switzerland (after 2 years)—> Italy Spain

Lower Risk but lower or less reward.

Pharmaceutical —> Through registration

Sprinkler strategy: Not focussing the ressources to one market => spreading. Enables the simulatneis floodin of key markets.

higher risk but greater and more immediate reward

6.3 Please explain the bandwagon effect

When something is “new”, some type of products and people mimic it, it will produces rapid growth. After a time the trend will be decrease mostly rapid. Their two option either the product drop out or it will be corrected at will grow sustainly. Hype curve

Tesla production

6.4 Please explain the purpose, core idea and structure of the CAGE model.

Evaulate risks and opportunities in international business.

Cultural, administrative, geographic, and economic distance framework helps managers identify and assess the impact of distance on various industries

The more two countries differ across these dimensions, the riskier the targetforeign market

By contrast, similarities along these dimensions suggest great potential

6.5 Which industries are influenced by which compoonent of the CAGE Model?

Cultural —> Close to the cluture the customers, consumer goods, media firms

Administatory —> If you work with local authorities

Geographical distance —> transporting havy and big products, not so important when you have smaller products, can produce on the place or can bought

have smaller product like consumer it might be ok because you can produce it there

Economic —> Large difference in personal earnings. it would be difficult if you want to sell a Rolex watches in South-Africa. Market structures

6.6 How do control and resources relate to foreign market activities, what activities need less resources and which ones need more, what activities allow for a high level of control?

Amount of Ressources and the Level of Control and put all the different market Stratgies in one scheme.

Subsidiary

Whole oned subsidiary, full fletched operations. All functional areas is in the subsidiary. Build this up would be high level of ressource commitment.

Invest less you have less control 50 % of the

Representation by third party

6.7 What modes of exporting do you know and what are the players involved?

direct and indirect Export/Import

direct Export / Import = All products are delivered directly to buyer via own sales organization

Indirect export/import: A company specialized in the import/export of products acts as intermediary between the domestic producer and the buyer abroad

6.8 What are advantages and disadvantages of direct export?

Advantage:

who do not have to pay intermediaries such as an importer, agent or distributor for their services.

direct access to the other country
Full control (setting the price)
Building Trust

Disadvantage:

Costs for return product and serviced products are much higher than having a local partner

6.9 What are advantages and disadvantages of indirect export?

+lower risk

+ expert exporters

+ hardly any country-specific knowledge required

+ overall less expensive

depending on the Country

6.10 How does foreign direct investment as an international activity work?

Establishing own foreign company (greenfield investment)
Merger and Aquicitions: buying a foreign company
Joint venture: corporate with foreign country (direct investing)

6.11 How does licensing as an international activity work?

The Licensor provides a combination of intellectual property (Patent, trademark, design, copyright or know-how) and Supporting products (parts, components).

The Licensee can Export or sell the products local.

The Lincesee compensate the linceor through.

lump sum payment (Pauschalbeträge)

down payment plus royalty (Anzahlung + Linzenzgebühr)

Products

know how

Cross-licensing (gegenseitige lizensierung

6.12 How does franchising as an international activity work?