The market that has been selected for expansion of the Quartz Company into the international market is the East European and European market. The country which has been selected is Czech Republicwhich is one of the fastest developing countries in East Europe.
The market entry strategies for entering the food retail market for Czech Republic from the point of view of foreign investors in the industry can include many forms. Some of the applicable entry strategies include licensing, joint ventures, ownerships and participating in trade free export zones.
Licensing would enable the company to establish its operations in the region by providing license to another company in the Czech Republic to manufacture, produce, market as well as distribute the products for sale and distribution in the Czech clock & watch industry. “It is quite similar to the “franchise” operation. Coca Cola is an excellent example of licensing. In Zimbabwe, United Bottlers have the license to make Coke” (‘Chapter 7: Market Entry Strategies’, 1997) The advantages of licensing include that it is less capital intensive and only an agreement for licensing needs to be signed between the parties. Moreover the relationship in licensing allows both the parent and the region specific subsidiary company to attain growth and marketing benefits. The disadvantages however include that the company is limited is limited in its participation in the region, and the potential profit and review based returns from operating in the market are mostly achieved by the subsidiary with only royalties being provided to the parent company.
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