As the name suggests, direct owners of any company can be individuals or any organization that owns a company without any partners’ involvement. Investors are a part of it. When any company has full ownership of the products and their production, the marketing strategies, and other components in the global market, it is important to understand the market and the local culture of the particular company to establish any company in the international market. Before launching any product, it is important to know the price that should be labeled for each product depending on the market and the people there. Any product that is not needed by the local population should not be launched, and even if it needs to be launched, proper marketing and advertisement are necessary. Any person with even 10% shareholding in a company can be called the direct owner of that particular organization. Generally, the shareholders of any company are the organizations that invest in a particular company on a global scale. Toyota is a good example of a company entering into the global marketing spectrum. The company first started in Japan and then slowly moved into the global market. Although the local workers and the local staff in the global market helped the company establish itself, the local staff also help in understanding the local requirements of the community.
For any company or organization to enter or establish direct ownership in the global market, it is important to use the entry strategies, some of these strategies are mentioned below:
Exporting: Exporting is probably the cheapest and the easiest method for establishing any product in the global market. This way, even if the product faces backlashes, its transportation can be stopped immediately, and this loss will be bearable by the company. The company can understand the market better by exporting some products and gaining feedback from the local population of any particular country or area.
Franchising: Although this method is not much profitable and can have many disadvantages, despite all these issues, it is still practiced by many companies. The company sells the right of using the brand name to any licensee and the production and marketing of the products under the brand name is done by the licensee. It takes a lot of time to establish itself in the market. If the licensee somehow manages to lower the quality of the product, it could tarnish the brand’s image and could eradicate all hopes of the future establishment of the product.
Trade intermediaries: Trade intermediaries have the required contact, relationships and are aware of the marketing procedures. Any company or organization that is unknown to the foreign markets and lacks the resources to enter those markets is known as a trade intermediary. These intermediaries help in properly establishing the products in the market by buying them at lower discount prices and selling them at a little higher cost in the market.
International Market Establishment Approach
Proper planning is necessary to enter the international market. It helps understand the market better, and all the risks are analyzed and avoided to gain maximum profits and successfully establish the brand name in the market. The planning methods are mentioned below:
Global approach: Before entering the international market, it is important to maintain a plan for the international market. The plan should be common for each of the countries where the establishment is required. It could be the low costs of the products, providing free samples and so on.
Non-standardized approach: In a non-standardized approach, the marketing plan is created differently for each country. According to the market and the requirement of the local people, the marketing plan is created and then established.
Global approach: This one could be known as the combination of global and non-standardization approaches. Here, the company should stick to its global strategy as well as care for the needs of the local market and the people. Any product is considered successful if the local people of any country accept it. The demand for the product or a company among locals determines its success.
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