The market entry strategies for a Logistics firm based in Germany Essay

The market entry strategies for a Logistics firm based in Germany - Essay ExampleExporting involves marketing and sales of convergences which are produced domestically but send to new(prenominal) countries for sales. This is a very traditional method which helps in selling and earning revenue of those products which can be produced in adequate make out in the country. As in exporting the goods are produced in the home country, so the investments related to conflicting production are not required (Hisrich 198). In case of exporting, most of the expenses are incurred for marketing. Exports are of two types a) direct export, and b) indirect export. Direct exports works best when the volume of goods to be exported is small. It involves direct sales of goods to other countries without any intermediaries. While in case of indirect export the export takes place through intermediaries. Control over the product does not remain with the exporter (McDonald, Burton, and Dowling 208 Kotabe, a nd Helsen 299).Advantages1.The foreign market and the representatives can be chosen.2.The trademark, goodwill, patent rights can be protected.3.Rate of sales is higher.Disadvantages1.The start-up cost is higher and the risk is in any case higher.2.Requirement of information is also higher in case of exports.3.Marketing the products requires longer time.LicensingLicensing agreements developed by the firm allows the foreign firm to either develop or market the product of the company for a specific time period. In this case, the licensor is the home country provides limited resources and rights to the licensee to the emcee country. These rights include managerial skills, patents, technology or trademarks for making it realistic for the host country to manufacture or market the products (Doing Business Internationally 13). The licensor may take onetime payment, royalty payments, or technology fees. Since this is considered as the sense modality of entry, so the transference of infor mation in between the licensee and the licensor is strong and the decision of developing the license also strongly depends on the government of the home and host countrys governments (Hoskisson 282 Kotabe, and Helsen 301). Advantages 1. Achieve additional revenue for technical knowledge and services. 2. Can be expanded rapidly as not much risks involved. Disadvantages