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picture1_Strategy Slides 79273 | Keegan Gm7 Stppt 09 0


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File: Strategy Slides 79273 | Keegan Gm7 Stppt 09 0
learning objectives trade barriers are falling around the world companies need to have a strategy to enter world markets starbucks has used direct ownership licensing and franchising for shops in ...

icon picture PPTX Filetype Power Point PPTX | Posted on 06 Sep 2022 | 3 years ago
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                          Learning Objectives
      • Trade barriers are falling 
          around the world
      • Companies need to 
          have a strategy to enter 
          world markets
      • Starbucks has used 
          direct ownership, 
          licensing, and 
          franchising for shops                     In 2010, Starbucks had 12,000 cafes 
          and products                              in 35 countries and sales of $10.8 
                                                    billion. Its goal is to reach 40,000 units 
                                                    worldwide.
                                Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
                          Investment Cost of 
                    Marketing Entry Strategies
                          Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
                             Which Strategy
                            Should Be Used?
     • It depends on:
         –Vision
         –Attitude toward 
            risk
         –Available 
            investment capital 
         –How much control 
            is desired
                          Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
                               Licensing
     • A contractual agreement whereby one company (the 
        licensor) makes an asset available to another 
        company (the licensee) in exchange for royalties, 
        license fees, or some other form of compensation
         – Patent
         – Trade secret
         – Brand name
         – Product formulations
                          Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
                 Advantages to Licensing
     • Provides additional profitability with little 
        initial investment
     • Provides method of circumventing tariffs, 
        quotas, and other export barriers
     • Attractive ROI
     • Low costs to implement
     • License agreements should have cross-
        technology agreements to inequities 
                          Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
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...Learning objectives trade barriers are falling around the world companies need to have a strategy enter markets starbucks has used direct ownership licensing and franchising for shops in had cafes products countries sales of billion its goal is reach units worldwide copyright pearson education inc publishing as prentice hall investment cost marketing entry strategies which should be it depends on vision attitude toward risk available capital how much control desired contractual agreement whereby one company licensor makes an asset another licensee exchange royalties license fees or some other form compensation patent secret brand name product formulations advantages provides additional profitability with little initial method circumventing tariffs quotas export attractive roi low costs implement agreements cross technology inequities...

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