Entry mode decision - Internationalisation - Global Marketing
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- čas přidán 22. 07. 2024
- An introduction to the subject of market entry mode decision in the connection with an organisation's internationalisation process. 4 sets of factors, which influence an organisation's choice of entry mode, are introduced and evaluated using an example. The subject of internalisation and externalisation is introduced as is a list of possible entry modes. This video is aimed at marketing management students.
Excellent video! Not only because there is a reference to my Global Marketing book :-)
Thank you, Svend :-)
Hi Svend, I am a fan of your work sir. I am a young marketing student and I just started my master studies, I will appreciate any advice from you sir. Thanks
Marketing management is a very challenging study. I have a copy of your global marketing book as part of a marketing management course booklist recommendation. This is what lead me to this video during my research to further explain the pre -internationalization stages. I guess I'm on the right tracks if its thumbs up from you :)
@@ngwesesimon7340 you
@@ngwesesimon7340 and
Simplified explanation that incorporates concepts, theories and an appropriate example.. thankful to You T. Wade..
Dear Rawle Nedd, Thank you very much for your feedback. By using an example I aim to create a connection between theory and real life -thereby attempting to make the theory taught transferable. I am happy to hear that you found it of value.
This is probably the best video on entry mode decision on CZcams! Thank you Ms. Wade
You are very welcome. I am pleased to hear that you found the video useful.
Many thanks for this lesson. Was so lucky to find this just one week before the thesis defense. Happy too, when my ideal professor Svend appeared here.
You are very welcome! I'm glad you found it helpful. I wish you all the best with your thesis exam :) Regards, Tine
Thank you for this video. Been struggling to understand this topic as i read. And you spoke slowly and it was so clear. Thank you again.
Hi Barbara. You are welcome. I am glad to hear that my video could assist your learning of the subject. Enjoy studying :-)
Thanks for creating this demonstration/ presentation Ms Wade. Truly helpful
You are very welcome. I'm glad you found the video helpful. Thank you for the comment. Regards, Tine.
Keep up the good work, the video is very informative and helpful. I can't understand why people are complaining about your voice, it works best with the animations, loved it.
i have benefited so much from your lecture . I'm student of the institute of charted accountants- Ghana , in fact your video has given me adequate information ,and surely is gonna help me pass my paper - corporate strategy and governance. thank you so much .God richly bless you.
Dear Augustine. Thank you for your comment. I am happy to hear that my videos have been helpful for you. I wish you the very best of luck with your exams.
Thank you Tine, this video explained the theory in a very simplified way..please continue in doing a great work like this :)
Dear Jay. You are welcome. I am pleased to hear that the video has assisted your learning of the theory. I will carry on making more videos on marketing related subjects as soon as time permits :-)
Thank you so much , very helpful and simple to understand ! AMAZING
Dear M Mtoor. You are welcome. Thank you for the feedback. I am pleased to hear that you found the video helpful.
Brilliant! Complex theory was made simple with the visuals. Thanks!!
You are very welcome. Thank you for your comment. I am pleased to hear that you liked the video. Regards, Tine.
This helped me a lot on my assignment. Thank you so so much.
Stilllife1999 You are welcome :-) I am pleased you found the video helpful. Best of luck with your assignment 🍀
You just made it very simple and easy to understand. Thanks
You are welcome. I am glad you found the video useful.
Thank you for a great video. Really helped with my Global Marketing exam and assignment!
You are welcome. I am glad you found the video helpful as you were working on your Global Marketing assignment and exam. Thank you for your comment. Regards, Tine Wade.
Very nice explanation. Was looking for this kind of video from so long. Thanks
You are very welcome. Thanks for leaving a comment. Regards, Tine.
Thanks a lot for this great video. Hope to see more in future.
You are welcome. Thank you for the comment. I will create more videos as and when time allows :). Regards, Tine
Is there any kind of model or theory for analyzing the aspects incluecing choice of entry mode?
Thank you for making the video, it helps me a lot for upcoming exam
You are welcome, Duyen Le. I am happy to hear that the video was useful for you. Best of luck with the exam. Regards, Tine
Thank you for the knowledge provided. I've learned a lot. If one day I will get rich based on what I learned today, I promise to make up for it
You are very welcome. I am glad you found the video educational. I wish you all the best. Regards, Tine
Hello friends,
I have the following situations:
1 / Company A wants to buy the distribution system of company B, but company B only wants to sell 100% of its assets. So what would you do in this situation ?.
2 / There are 2 companies working in the same field:
Company X builds its own store and creates its own distribution system.
Company Y relies on outside distributors and stores to distribute goods to consumers.
Question: In what case will you buy company X and company Y ?.
Thank you.
Thanks for this video it really helped me out!
You are most welcome. I am glad you could use it.
what is the level of involvement to go in the global market
Thank you so much
this video is so helpful.
You are welcome. I am pleased you found it useful.
Very informative, very logical , thanks Tine, it worth to see
Thanks very much Muhammad. You are very welcome. Regards, Tine
Thank you! You helped me with my exam
You are welcome. Glad to be of service :) I hope your exam went well.
Great video . Thank you very much :)
Dear Nuwan. You are welcome. Thank you for your comment.
Amazing Content! Thanks Tine.
You're welcome, Patrick. I'm glad you like it. Thanks for leaving a comment 👍
Very useful video, I learned a lot, thank you
You are very welcome. Regards, Tine
Hello!
Thanks a lot for this video it helped me a lot! I still have a question. What entry mode would you choose for a clean beauty retailer / beauty retailer that is still small. I don't know how to evaluate the product complexity since a retailer sells a variety of products (I just though that the complexity might be high in the case of a clean beauty retailer because they attention to a big list of ingredients they shouldn't use for the products or the materials for the packaging). I don't know which entry mode to pick between an agent and a franchising that might be more risky. Maybe another entry mode might be better too but I don't know.
I also wonder how would the agent sells the product of the retailer since they sell a lot of different brands like Sephora...
Sorry for all these questions and thanks for the video!
Hi, and thanks for the patience in my reply.
For most small businesses venturing into international markets the most important criteria is low cost and flexibility as it ensures a low risk and the ability to try out without risking all available resources.
It sounds like relatively low product complexity, but I also sense from what you write the need for some product knowledge. Hmm not an easy decision. Maybe the key is to carefully select the product lines suitable for the particular market and then find a few suitable agents who can open the doors to retail. And yes, you are right retail is tricky, they usually sell competing brands. But this is not always a bad thing. It means at least that they have customers demanding the product category you are selling. Then it's up to yours to stand out, offer something differentiated (in valued features, price bracket, packaging or something else). I hope you find / found a good solution to try out. All the best. Regards, Tine.
Great video - a small thing to consider: using an agent in example 2 would be indirect export, not direct export as the company is relying on a 3rd party intermediary.
I'm glad you liked the video. Thanks for the feedback. I think it depends on the definition whether the example provided would be considered direct or indirect export. My academical point of reference is Hollensen, "Global Marketing", where the direct / indirect definition is determined by the 3rd party being based in the home market (indirect export) or foreign market of entry (direct export). I imagine that other academics might define differently, so thanks for the comment. All the best. Regards, Tine
I agree with this point, as I was thinking the same. Exporting is either direct or indirect. In this case it is indirect.
I read your comment every night when I want to fall asleep. Thank you.
Great video! Well understood!
I'm glad you found the video helpful. Thanks for leaving a comment. All the best. Regards, Tine.
Nice Video ...with details
Thank you for your feedback. I am glad you found the video useful.
Thank you Tine, thank you so much for your wonderful lectures. They are very well designed and clearly explained. Also, I love your voice and pronounciations ^-^
As I am a college teacher from China, I wonder whether I can share these wonderful videos with my students in the class so that they can benefit from your great lectures?
We would appreciate it very much.
Dear Mel Yang,
Thank you very much for your comments. I am very glad to hear that you find my videos useful. All my videos are created under the creative commons license, which means that anyone is free to share them for non-commercial purposes, as long as the originator is referenced. And I have made this easy for anyone who wishes to share, as I include all that formal information at the end of every video. So, yes, you are very welcome to share the videos in your classes, post links to them in your own materials, on your intranets, websites etc.. In my view, the more students around the world can benefit from them, the better :-)
If you have any questions, don't hestitate to contact me again.
Kind regards,
Tine Wade
Dear Tine Wade,
Thank you so much for your permission and generosity. You are doing a very meaningful thing, from which a lot students, national or international, will definitely benefit a lot from your wonderful lectures. We appreciate your great efforts and excellent performance in these awesome lectures!
Sincerely yours
Mel Yang
Hi Tine, this is a great video :) do you mind sharing which academic book you used as a source? thank you!
Elisa Mosena Thank you for your comment :-) The academic source is listed at min. 13:23. :-)
what would happen if your internal factors and external factors contradict, internal say export, external say intermediary or hierarchical
Dear Abdulrahaman Ibrahim. I'm sorry for the delayed response to your question. Quite often some factors would indeed contradict. Each situation will be different, and you could experience that some factors are "show stoppers" in one case. For example if the company has a demand for high flexibility (be able to abort mission quickly at a low cost), this could be the deciding factor for the choice of entry mode. I hope this helps. Regards, Tine
Is this a way to promote the books mentioned in the videos or the woman voicing them?
I have created (and voiced) the videos on this channel for the purpose of assisting my students' learning of the subjects we address on the Marketing Management Programme at VIA University College. I give reference to the books which we use in class to encourage further learning of the subjects covered. I hope this answers your questions.
May I ask why product complexity low will make it consider externalization?
Hi. In principle this is because if the product is of low complexity it is relatively easy to let someone else (ie an intermediary) sell it. In contrast, if the product complexity is high it can be difficult to let someone else (an intermediary) sell it as you would have to educate and train them extensively about the product first. Of course that can be done but it adds complexity and costs to the process. Therefore, this must be considered when deciding whether to use an intermediary (externalization) or not (internalisation). I hope this clarifies. All the best. Regards, Tine.
Nice video. please, could you give some book references that were used for this video? plus other book and journal references on entry modes and international market entry strategies. Thanks.
Thank you for your comment. I am sorry for the late reply to your request. The book reference used for this video is mentioned at the end of the video. Svend Hollensen's Global Marketing book is a very good reference for International market entry strategies. Best of luck. Regards, Tine
nice topic
Thank you very much!!!!!
You are very welcome :) Regards, Tine Wade.
Hi Tine. First of all, great video.
Would you mind elaborating the difference between the manufacturing industry and let's say soft-service industry (full-service restaurant, hotels, etc.), where production and occurs relatively simultaneously. I know a lot of different factors/forces are involved (international experience, cultural and geographical distance to target market), but what would your take be on e.g. a Danish chain restaurant internationalizing to, lets say Norway?
Can you clarify the use of the book and it's model and theory in such an example?
Henrik
Hi Henrik. Thank you for your question. I agree, there are significant differences between product-heavy and service-heavy industries, if I interpreted you correctly. It would be nescessary to do a good amount of research on the industry in question, the specific competitors and the buying behaviour of the target group before being able to say anything decisive about what you are asking. Without having done this, it is hard to comment categorically on your question. Instead, let me comment on some points, which I might find important to research in detail:
Culture and buying behaviour. Since Denmark and Norway are very close geographically and language wise, I think it would be a mistake to simply assume that the relevant buying behaviour (eating out, entertainment... behaviour) of Norweigans are the same as that of the Danish. So, thorough research of this would be of grat value, I would expect. Not least the service aspect -what consumers value and expect of their interaction with the "people" aspect of the service.
Also, the competitive situation in particular geographical areas would be important to research. Knowing exactly who you would be competing against would be vital knowledge when deciding where, when and how to enter the country.
Many more factors would be great to research, but these were just the ones that immediately struck me as worth mentioning here.
I hope this provided some of what you were asking. And I wish you the best of luck, if you are considering an actual entry to the Norweigan market :).
Kind regards, Tine
Book reference: Svend Hollensen, Global Marketing.
thank you so much this was great
Dear Abdulrahaman Ibrahim. You are most welcome. I am pleased to hear that you found the video useful. Regards, Tine.
how are the factors denoting whether the move should be internalisation or externalisation? Can someone help? Thanks.
Dear Satis kc. Referring to the example in the video, under "Internal Factors", company size and level of international experience: It is discussed that the company is small and has no international experience. These two facts point towards externalisation being the best option, as a small company with no international experience might find it too risky to internalize (using a hierarchical mode of entry). In the video, this is indicated by the words "SMALL" and "NONE" being coloured red like the "EXTERNALIZATION" on the visual on the left. In this way, if you apply your own organization of choice, you should be able to address each factor in each section and see the direction you are pointed towards. If for example your organization is large and has international experience, this would point in the opposite direction: Internalisation. Of course, a complete picture is needed (all factors addressed) before a decision is made. Some factors might point in one direction, and others in the complete opposite, and/or anywhere in between. So there is no easy way of making "the right choice". However, adressing these factors might help consider many aspects, and thus qualify the decision. I hope this helps? Kind regards, Tine Wade
Tine Wade what is internalisation and externalization in simple terms? And yes the answer helped. As soon as I know what the above terms mean I think I ll be fine. Thank you very much.
Internalisation : An entry mode where you (your organisation) remain in ownership. This is also called a hierarchical mode. An example: setting up a sales office in the new country, and the sales staff is employed directly by you (your organisation).
Externalisation: An entry mode where you (your organisation) uses partners of some sort, so You don't hold on to ownership. Also called an export mode. An example: Appointing (not employing) an agent from the local market. He/she can represent your organisation on the new market. Your organisation makes an agreement with the agent that he/she will receive a certain fee based on how much he sells for your organisation.
I hope this helps?
Feel free to ask again ☺️👍
Tine Wade thank you so much. Yes I got it. That was so simple, may be its you who made it so. Thanks.
Great video. Where did you get all information from? Is there any book, where I can find it?
Hi. Thanks for your comment. And yes, absolutely - the book "Global Marketing" by Svend Hollensen. This is the book which I refer to for this and many other subjects within international marketing. If you check out the final minut of the film, you will see that I have mentioned this source as a good read to gain more in depth knowledge about this and related subjects. I am glad you found my video useful. I wish you all the best.
Look at the main book to live by
EXCELLENT.
Thanks :)
Thanks for the video
Its really helpful but can you help me with the lists of the materials you used for an an academic reference, please.
You are very welcome 👍. The academic reference is Hollensen, Global Marketing . All the best. Regards, Tine.
@@TineWade Thanks so much.
Currently, watching your video on Marketing mix.. I'm loving every bit of it.
God bless you 🙏
@@user-pz5od9bn9t I'm glad you find the videos beneficial. The footage in the last few seconds of my videos usually display some academic references, just in case you need them. For the videos in the internationalization playlist, the main reference is Hollensen, Global Marketing.
What are the criteria’s for Intermediate modes
Good question, and thank you for asking. The different intermediate modes are very different from each other. For example strategic alliances, which is one of the intermediate modes - this intermediate mode itself comes in as many variations as there are strategic alliances made, since the individual agreement (contract) determines the cooperation. Therefore, intermediate modes provide very different pros and cons, and therefore it is difficult to set out general criteria for them as a whole. However, we can say that many intermediate modes offer various degrees of "sharing" the risk, workload, and profit with the company. I hope this clarifies if not completely answers your question. All the best. Regards, Tine.
Thnx schwaty
It's helpful
Dear 7 Maxxx. I am glad to hear that you found the video helpful. Thank you for your comment. Regards, Tine Wade.
Merci Tina
Dear Esmaeil. You are welcome. Regards, Tine.
thank you so much
You are very welcome. Thanks for your comment. Regards, Tine.
Thank you
You're welcome 👍
"Currently there are no trade barriers standing in the way of exporting goods to the UK." Well this video aged like fine wine. 😂
Thanku madam
You are very welcome. Thanks for the comment. Regards, Tine
This sounds like using the internalization theory
'
Your voice needs to be more up beat
Thank you for your comment. I appreciate that everyone has different preferences in speaker styles :) I aim to keep a professional voice in my videos, as the contents are educational -I make them to support my students' in their learning process. I hope you found the contents of the video useful anyway. Kind regards, Tine.
Very interesting and helpful, but I'm sorry such a boring voice
Despite me not winning you over with my voice I am pleased to hear that you still found the video helpful. Regards, Tine.