Chapter 9Copyright (c) 2007 John Wiley & Sons, Inc.1 Global Marketing Management, 4e Chapter 9 Global Market Entry Strategies 글로벌 시장진입전략

Chapter 9Chapter 9 Copyright (c) 2007 John Wiley & Sons, Inc.Copyright (c) 2007 John Wiley & Sons, Inc. 11

Global Marketing Management, 4eGlobal Marketing Management, 4e

Chapter 9

Global Market Entry Strategies

글로벌 시장진입전략


Chapter OverviewChapter Overview

1. Target Market Selection(1. Target Market Selection( 목표시장선정목표시장선정 ))2. Choosing the Mode of Entry(2. Choosing the Mode of Entry( 진입유형선택진입유형선택 ))3. Exporting(3. Exporting( 수출수출 ))4. Licensing(4. Licensing( 라이센싱라이센싱 ))5. Franchising(5. Franchising( 프랜차이징프랜차이징 ))6. Contract Manufacturing(6. Contract Manufacturing( 계약생산계약생산 , , 아웃소아웃소

싱싱 ))7. Joint Ventures(7. Joint Ventures( 합작투자합작투자 ))8. Wholly Owned Subsidiaries(100% 8. Wholly Owned Subsidiaries(100% 자회사자회사 ))9. Strategic Alliances(9. Strategic Alliances( 전략적 제휴전략적 제휴 ))10. Timing of Entry(10. Timing of Entry( 진입시점진입시점 ))11. Exit Strategies(11. Exit Strategies( 철수전략철수전략 ))


IntroductionIntroduction

The need for a solid market entry decision(The need for a solid market entry decision( 신중한 신중한 시장진입결정시장진입결정 ) is an integral part of a global market entry ) is an integral part of a global market entry strategy.strategy.

Entry decisions will heavily influence the firm’s other Entry decisions will heavily influence the firm’s other marketing-mix decisions.marketing-mix decisions.

Global marketers have to make a multitude of decisions Global marketers have to make a multitude of decisions regarding the entry mode which may include: regarding the entry mode which may include: – (1) the target product/market((1) the target product/market( 목표 제품목표 제품 // 시장시장 ))– (2) the goals of the target markets((2) the goals of the target markets( 목표시장 목적목표시장 목적 ))– (3) the mode of entry((3) the mode of entry( 진입유형진입유형 ))– (4) The time of entry((4) The time of entry( 진입시점진입시점 ))– (5) A marketing-mix plan((5) A marketing-mix plan( 마케팅 믹스 계획마케팅 믹스 계획 ))– (6) A control system to check the performance in the entered (6) A control system to check the performance in the entered

markets(markets( 진출시장에서 성과평가를 위한 통제시스템진출시장에서 성과평가를 위한 통제시스템 ))


1. Selecting the Target Market1. Selecting the Target Market

A crucial step in developing a global expansion A crucial step in developing a global expansion strategy is the selection of potential target markets strategy is the selection of potential target markets (see Exhibit 9-1 for the entry decision process).(see Exhibit 9-1 for the entry decision process).

A four-step procedure for the initial screening A four-step procedure for the initial screening process(process( 목표시장선정 목표시장선정 44 대 절차대 절차 ):):

1. Select indicators and collect data(1. Select indicators and collect data( 지표선정 및 자료수집지표선정 및 자료수집 ))

2. Determine importance of country indicators(2. Determine importance of country indicators( 지표별 가중치 지표별 가중치 결정결정 ))3. Rate the countries in the pool on each3. Rate the countries in the pool on each

indicator(indicator( 지표별 국가의 점수 평가지표별 국가의 점수 평가 ))4. Compute overall score for each country(4. Compute overall score for each country( 국가별 총점 계산국가별 총점 계산 ))


1. Selecting the Target Market1. Selecting the Target Market


2. Choosing the Mode of Entry2. Choosing the Mode of Entry

Decision Criteria for Mode of Entry(Decision Criteria for Mode of Entry(진입유형결정기준진입유형결정기준 ):):– Market Size and Growth(Market Size and Growth( 시장규모 및 성장시장규모 및 성장 ))– Risk(Risk( 위험위험 ))– Government Regulations(Government Regulations( 정부규제정부규제 ))– Competitive Environment/Cultural Distance(Competitive Environment/Cultural Distance(

경쟁환경경쟁환경 // 문화차이문화차이 ))– Local Infrastructure(Local Infrastructure( 현지 인프라현지 인프라 ))







Classification of Markets(Classification of Markets( 시장분류시장분류 ))::– Platform Countries Platform Countries 거점거점 (Singapore & Hong Kong)(Singapore & Hong Kong)– Emerging Countries Emerging Countries 신흥신흥 (Vietnam & the Philippines)(Vietnam & the Philippines)– Growth Countries Growth Countries 성장 성장 (China & India)(China & India)– Maturing and established countries Maturing and established countries 성숙 성숙 (examples: South (examples: South

Korea, Taiwan & Japan)Korea, Taiwan & Japan)

– Company Objectives(Company Objectives( 기업 목적기업 목적 ))– Need for Control(Need for Control( 통제 필요통제 필요 ))– Internal Resources, Assets and Capabilities(Internal Resources, Assets and Capabilities( 내부 자원내부 자원 , ,

자산 및 역량자산 및 역량– Flexibility(Flexibility( 유연성유연성 ))


2. Choosing the Mode of Entry2. Choosing the Mode of Entry Mode of Entry Choice: A Transaction Cost Explanation(Mode of Entry Choice: A Transaction Cost Explanation(

거래비용이론거래비용이론 ))– Regarding entry modes, companies normally face a Regarding entry modes, companies normally face a

tradeoff between the benefits of increased control and tradeoff between the benefits of increased control and the costs of resource commitment and risk(the costs of resource commitment and risk( 진입유형과 진입유형과 관련관련 ,, 기업은 통제가 증가할 수록 투입되는 자원 비용과 기업은 통제가 증가할 수록 투입되는 자원 비용과 위험이 증대하는 상쇄관계에 직면함위험이 증대하는 상쇄관계에 직면함 )) ..

– Transaction Cost Analysis (TCA) perspectiveTransaction Cost Analysis (TCA) perspective– Transaction-Specific Assets(Transaction-Specific Assets( 거래특유자산거래특유자산 : : 매우 좁은 매우 좁은

적용범위에서만 가치가 있는 자산적용범위에서만 가치가 있는 자산 ) (assets valuable for ) (assets valuable for a very narrow range of applications)a very narrow range of applications)


3. Exporting3. Exporting

Indirect Exporting(Indirect Exporting( 간접수출간접수출 ) ) – Export merchants(Export merchants( 수출상수출상 , , 무역상무역상 ))– Export agents(Export agents( 수출대리인수출대리인 , , 대리상대리상 ))– Export management companies (EMC, Export management companies (EMC, 미국 미국

수출대행업체수출대행업체 )) Cooperative Exporting(Cooperative Exporting( 협력수출협력수출 ))

– Piggyback ExportingPiggyback Exporting Direct Exporting(Direct Exporting( 직접수출직접수출 ))

– Firms set up their own exporting departmentsFirms set up their own exporting departments


4. Licensing4. Licensing

Licensor and the licensee(Licensor and the licensee( 라이센서와 라이센시라이센서와 라이센시 )) BenefitsBenefits::

– Appealing to small companies that lack resourcesAppealing to small companies that lack resources– Faster access to the market(Faster access to the market( 신속한 시장진출신속한 시장진출 ))– Rapid penetration of the global markets(Rapid penetration of the global markets( 신속한 시장침투신속한 시장침투 ))

CaveatsCaveats::– Other entry mode choices may be affectedOther entry mode choices may be affected– Licensee may not be committed(Licensee may not be committed( 라이센시의 소극성라이센시의 소극성 ))– Lack of enthusiasm on the part of a licenseeLack of enthusiasm on the part of a licensee– Biggest danger is the risk of opportunism(Biggest danger is the risk of opportunism( 기회주의 위험기회주의 위험 ))– Licensee may become a future competitor(Licensee may become a future competitor( 라이센시가 라이센시가

미래의 경쟁자가 될 수 있음미래의 경쟁자가 될 수 있음 ))


4. Licensing4. Licensing

How to seek a good licensing agreement (see Global How to seek a good licensing agreement (see Global Perspective 9-1)Perspective 9-1)::– Seek patent or trademark protection(Seek patent or trademark protection( 특허권 및 특허권 및

상표권 보호방안 모색상표권 보호방안 모색 ))– Thorough profitability analysis(Thorough profitability analysis( 철저한 수익성 분석철저한 수익성 분석 ))– Careful selection of prospective licensees(Careful selection of prospective licensees( 잠재 잠재

라이센시에 대한 신중한 선정라이센시에 대한 신중한 선정 ))– Contract parameter Contract parameter 계약조항 점검계약조항 점검 (technology (technology

package, use conditions, compensation, and package, use conditions, compensation, and provisions for the settlement of disputes)provisions for the settlement of disputes)


5. Franchising5. Franchising

Franchisor and the Franchisor and the franchisee(franchisee( 프랜차이저와 프랜차이저와 프랜차이지프랜차이지 ))

Master franchisingMaster franchising

(( 마스터프랜차이지마스터프랜차이지 ))

BenefitsBenefits::– Overseas expansion with a Overseas expansion with a

minimum investmentminimum investment– Franchisees’ profits tied to Franchisees’ profits tied to

their effortstheir efforts– Availability of local Availability of local

franchisees’ knowledgefranchisees’ knowledge

CaveatsCaveats::– Revenues may not be adequateRevenues may not be adequate– Availability of a master Availability of a master

franchiseefranchisee– Limited franchising Limited franchising

opportunities overseasopportunities overseas– Lack of control over the Lack of control over the

franchisees’ operationsfranchisees’ operations– Problem in performance Problem in performance

standardsstandards– Cultural problemsCultural problems– Physical proximityPhysical proximity


5. Franchising5. Franchising


6. Contract Manufacturing (Outsourcing)6. Contract Manufacturing (Outsourcing)계약생산계약생산 (( 아웃소싱아웃소싱 ))

BenefitsBenefits::– Labor cost advantagesLabor cost advantages

– Savings via taxation, lower energy costs, raw materials, and Savings via taxation, lower energy costs, raw materials, and overheads(overheads( 조세조세 , , 에너지비용에너지비용 , , 원재료 및 기타 고정비 등의 원재료 및 기타 고정비 등의 절약을 통해서 비용절감절약을 통해서 비용절감 ))

– Lower political and economic riskLower political and economic risk

– Quicker access to marketsQuicker access to markets CaveatsCaveats::

– Contract manufacturer may become a future competitorContract manufacturer may become a future competitor

– Lower productivity standardsLower productivity standards

– Backlash from the company’s home-market employees Backlash from the company’s home-market employees regarding HR and labor issues(regarding HR and labor issues( 본국 종업원의 반발본국 종업원의 반발 ))

– Issues of quality and production standardsIssues of quality and production standards


6. Contract Manufacturing (Outsourcing)6. Contract Manufacturing (Outsourcing)

Qualities of an ideal subcontractor(Qualities of an ideal subcontractor( 이상적인 이상적인 하청기업의 요건하청기업의 요건 ):):

– Flexible/geared toward just-in-time delivery(Flexible/geared toward just-in-time delivery(적시납품에 대한 유연성 및 연동성적시납품에 대한 유연성 및 연동성 ))

– Able to meet quality standardsAble to meet quality standards– Solid financial footings(Solid financial footings( 건실한 재무건전성건실한 재무건전성 ))– Able to integrate with company’s business(Able to integrate with company’s business( 본 본

사업과 통합가능성사업과 통합가능성 ))– Must have contingency plans(Must have contingency plans( 돌발상황 대응계획돌발상황 대응계획 ) )


7. Expanding through Joint Ventures7. Expanding through Joint Ventures

Cooperative joint venture(Cooperative joint venture( 협력사업협력사업 )) Equity joint venture(Equity joint venture( 합작투자합작투자 )) BenefitsBenefits::

– Higher rate of return and more control over the Higher rate of return and more control over the operations(operations( 높은 투자수익 및 사업에 대한 통제높은 투자수익 및 사업에 대한 통제 ))

– Creation of synergy(Creation of synergy( 시너지 창출시너지 창출 ))– Sharing of resources(Sharing of resources( 자원의 공유자원의 공유 ))– Access to distribution network(Access to distribution network( 유통네트워크 접근유통네트워크 접근 ))– Contact with local suppliers and government officials(Contact with local suppliers and government officials(

현지 공급자 및 정부관리 접근현지 공급자 및 정부관리 접근 ))



CaveatsCaveats::– Lack of control(Lack of control( 통제결여통제결여 ))– Lack of trust(Lack of trust( 신뢰결여신뢰결여 ))– Conflicts arising over matters such as strategies, Conflicts arising over matters such as strategies,

resource allocation, transfer pricing, ownership of resource allocation, transfer pricing, ownership of critical assets like technologies and brand critical assets like technologies and brand names(names( 전략전략 , , 자원배분자원배분 , , 이전가격이전가격 ,, 기술 및 기술 및 브랜드 등과 같은 핵심자산에 대한 소유권 등의 브랜드 등과 같은 핵심자산에 대한 소유권 등의 문제에 대해서 갈등이 발생할 소지가 높음문제에 대해서 갈등이 발생할 소지가 높음 ))



Drivers Behind Successful International Joint Ventures(Drivers Behind Successful International Joint Ventures(성공적인 국제합작투자의 요건성공적인 국제합작투자의 요건 )) : :– Pick the right partner(Pick the right partner( 적절한 파트너 선정적절한 파트너 선정 ))

– Establish clear objectives from the beginning(Establish clear objectives from the beginning( 초기부터 초기부터 명백한 목표설정명백한 목표설정 ))

– Bridge cultural gaps(Bridge cultural gaps( 문화적 차이 해소문화적 차이 해소 ))

– Gain top managerial commitment and respect(Gain top managerial commitment and respect( 최고경영진의 최고경영진의 전적인 관심과 배려 확보전적인 관심과 배려 확보 ))

– Use incremental approach(Use incremental approach( 점증적 접근 필요점증적 접근 필요 ))

– Create a launch team during the launch phase(Create a launch team during the launch phase( 추진팀 구성추진팀 구성 ):):– (1) Build and maintain strategic alignment((1) Build and maintain strategic alignment( 전략적 협력의 형성 및 유지전략적 협력의 형성 및 유지 ))– (2) Create a governance system((2) Create a governance system( 지배구조의 합의 및 도출지배구조의 합의 및 도출 ))– (3) Manage the economic interdependencies((3) Manage the economic interdependencies( 경제적 상호의존성 관리경제적 상호의존성 관리 ))– (4) Build the organization for the joint venture(JV(4) Build the organization for the joint venture(JV 를 위한 조직 구성를 위한 조직 구성 ))


8. Entering New Markets through Wholly 8. Entering New Markets through Wholly Owned SubsidiariesOwned Subsidiaries

Acquisitions(Acquisitions( 인수합병형 투자인수합병형 투자 )) Greenfield Operations(Greenfield Operations( 그린필드형 투자그린필드형 투자 )) BenefitsBenefits::

– Greater control and higher profits(Greater control and higher profits( 보다 많은 통제와 보다 많은 통제와 높은 이익높은 이익 ))

– Strong commitment to the local market on the part Strong commitment to the local market on the part of companiesof companies

– Allows the investor to manage and control Allows the investor to manage and control marketing, production, and sourcing decisions(marketing, production, and sourcing decisions(투자자가 직접 마케팅투자자가 직접 마케팅 , , 생산 및 조달관련 결정을 생산 및 조달관련 결정을 관리하고 통제관리하고 통제 ))



CaveatsCaveats::– Risks of full ownership(100% Risks of full ownership(100% 지분의 위험지분의 위험 ))– Developing a foreign presence without the Developing a foreign presence without the

support of a third partsupport of a third part– Risk of nationalization(Risk of nationalization( 국유화 위험국유화 위험 ))– Issues of cultural and economic sovereignty of Issues of cultural and economic sovereignty of

the host country(the host country( 현지국의 문화적 및 경제적 현지국의 문화적 및 경제적 주권 등과 관련된 이슈주권 등과 관련된 이슈 ))



Acquisitions and Mergers(M&AAcquisitions and Mergers(M&A 형 투자형 투자 ))– Quick access to the local marketQuick access to the local market

– Good way to get access to the local brandsGood way to get access to the local brands Greenfield Operations(Greenfield Operations( 그린필드형 투자그린필드형 투자 ))

– Offer the company more flexibility than acquisitions Offer the company more flexibility than acquisitions in the areas of human resources, suppliers, in the areas of human resources, suppliers, logistics, plant layout, and manufacturing logistics, plant layout, and manufacturing technology(technology( 인사인사 , , 공급자공급자 , , 물류물류 , , 공장배치 및 공장배치 및 제조기술 등과 관련 제조기술 등과 관련 M&AM&A 보다 유연성 확보 가능보다 유연성 확보 가능 ).).


9. Creating Strategic Alliances 9. Creating Strategic Alliances

Types of Strategic Alliances(Types of Strategic Alliances( 전략적 제휴의 유형전략적 제휴의 유형 ) ) – Simple licensing agreements between two Simple licensing agreements between two

partners(partners( 단순 라이센싱 계약단순 라이센싱 계약 ))– Market-based alliances (Market-based alliances ( 시장기반 제휴시장기반 제휴 ))– Operations and logistics alliances(Operations and logistics alliances( 운영 및 물류 운영 및 물류

제휴제휴 ))– Operations-based alliances(Operations-based alliances( 운영기반 제휴운영기반 제휴 ))


9. Creating Strategic Alliances 9. Creating Strategic Alliances

The Logic Behind Strategic Alliances (The Logic Behind Strategic Alliances ( 전략적 전략적 제휴의 논리적 배경제휴의 논리적 배경 ))– Defend(Defend( 방어방어 ))– Catch-Up (Catch-Up ( 추격추격 ))– Remain(Remain( 잔류잔류 ))– Restructure(Restructure( 구조조정구조조정 ))


9. Creating Strategic Alliances9. Creating Strategic Alliances


9. Creating Strategic Alliances9. Creating Strategic Alliances

Cross-Border Alliances that Succeed(Cross-Border Alliances that Succeed( 성공적인 성공적인 국제 전략적 제휴국제 전략적 제휴 ):):– Alliances between strong and weak partners Alliances between strong and weak partners

seldom work(seldom work( 강력한 파트너와 약한 파트너간 강력한 파트너와 약한 파트너간 제휴는 성공가능성 희박제휴는 성공가능성 희박 ).).

– Autonomy and flexibility(Autonomy and flexibility( 자유성과 유연성자유성과 유연성 ))– Equal ownership(Equal ownership( 동등 지분참여동등 지분참여 ))


9. Creating Strategic Alliances9. Creating Strategic Alliances– Other factors(Other factors( 기타 요인기타 요인 ): ):

Commitment and support of the top of the Commitment and support of the top of the partners’ organizationspartners’ organizations

Strong alliance managers are the keyStrong alliance managers are the key Alliances between partners that are related in Alliances between partners that are related in

terms of products, technologies, and marketsterms of products, technologies, and markets Have similar cultures, assets sizes and Have similar cultures, assets sizes and

venturing experienceventuring experience Tend to start on a narrow basis and broaden Tend to start on a narrow basis and broaden

over timeover time A shared vision on goals and mutual benefitsA shared vision on goals and mutual benefits


10. Timing of Entry10. Timing of Entry

International market entry decisions should also International market entry decisions should also cover the following timing-of-entry issues(cover the following timing-of-entry issues(진입시기관련 검토사항진입시기관련 검토사항 ): ): – When should the firm enter a foreign market?When should the firm enter a foreign market?– Other important factors include: level of Other important factors include: level of

international experience, firm sizeinternational experience, firm size– Also, the broader the scope of products and Also, the broader the scope of products and

servicesservices– Mode of entry issues, market knowledge, various Mode of entry issues, market knowledge, various

economic attractiveness variables, etc. economic attractiveness variables, etc.


10. Timing of Entry10. Timing of Entry

Reasons for exit(Reasons for exit( 철수이유철수이유 ))::– Sustained losses(Sustained losses( 손실지속손실지속 ))– Volatility(Volatility( 변동성변동성 ))– Premature entry(Premature entry( 성급한 진출성급한 진출 ))– Ethical reasons(Ethical reasons( 윤리적 이유윤리적 이유 ))– Intense competition(Intense competition( 경쟁격화경쟁격화 ))– Resource reallocation (Resource reallocation ( 자원재배치자원재배치 ))


11. Exit Strategies11. Exit Strategies

Risks of exit(Risks of exit( 철수위험철수위험 ))::– Fixed costs of exit(Fixed costs of exit( 철수 고정비용철수 고정비용 ))– Disposition of assets(Disposition of assets( 자산처분자산처분 ))– Signal to other markets(Signal to other markets( 다른 시장에 부정적 신호다른 시장에 부정적 신호 ))– Long-term opportunities(Long-term opportunities( 장기기회 상실장기기회 상실 ))

Guidelines:Guidelines:– Contemplate and assess all options to salvage the Contemplate and assess all options to salvage the

foreign business(foreign business( 해외사업을 살리기 위한 모든 해외사업을 살리기 위한 모든 옵션을 상정하고 평가옵션을 상정하고 평가 ))

– Incremental exit(Incremental exit( 점진적 철수점진적 철수 ))– Migrate customers(Migrate customers( 고객이동고객이동 ))

Documents

Chapter 9Copyright (c) 2007 John Wiley & Sons, Inc.1 Global Marketing Management, 4e Chapter 9 Global Market Entry Strategies 글로벌 시장진입전략