Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

What is licensing as a mode of entry

What is licensing as a mode of entry?

Android News-jp says that coming up with a marketing strategy is one of the most important and difficult parts of marketing. A business’s actions in the market are based on its marketing strategy, which shows how marketing can be used to grow target markets and get good results. Since the market is always changing, the plan for getting into it needs to be flexible. It needs to be changed every so often. It is not possible to come up with a single strategy that would work for all businesses and products.

Before going into foreign markets, the company needs to answer the question, “Why?” For example, to increase the value of a company by expanding its presence in more places, to earn foreign currency to get a foreign currency loan or to buy resources with foreign currency, to diversify the market, etc. The method of market entry strategy also varies depending on the objectives.

Learn more about the service “Market Entry Strategy” by Android News-jp

Exporting your products

What is licensing as a mode of entry?

Exporting is the easiest way to get into a new market. The benefit of this strategy is that it only requires a small amount of money to be invested in a foreign market. A business has two options for exporting its goods: it can use the services of independent international marketing intermediaries (called “indirect export”) or it can handle exporting on its own (direct export). Most companies that are just starting out in the export business use the indirect export method. First of all, it costs less money.

The company doesn’t have to buy its business tools from other countries or build a network of contacts there. Second, it has less risk attached to it. International marketing intermediaries are domestic exporting merchants, domestic export agents, or cooperative organizations. They bring their specific professional knowledge, skills, and services to this activity, so the seller usually makes fewer mistakes.

When choosing countries to export to, it’s best to go with those that are easy to get into and have the most sales potential. A small business can fail if it makes the wrong choice. For this, it is very important to figure out the criteria for choosing countries and to collect primary data for analysis. When selling anything, it’s important to keep the customer in mind and answer the following questions: Who are you trying to reach? What is it? Where do you have less competition? Where are the easiest and most affordable ways to sell?

It is also important to think about internal limits, which may also affect the choice. If customers have to talk to the company a lot about the product or service, the language of communication and documentation may be the most important factor.

What is licensing as a mode of entry

There are many benefits of exporting, such as:
a) Lower production costs
b) Few resources (at the initial stage of export activity, intermediaries are involved, so there are no necessary human and financial resources to promote their products)
c) Enterprises are subject to minor dangers and risks, have access to the foreign market
d) It does not require large organizational efforts (warehouses, human resources)
e) Exemption from the workflow routine
f) The intermediary can deliver valuable analytical information

The disadvantages are the following:
a) High-margin fees
b) Relatively high prices for the final customer
c) Limited control over territorial coverage
d) In the long run, indirect exports lead to diminishing returns

licensing and franchising

Licensing is a way for a company in one country to let a company in another country use its unique production processes, patents, trademarks, technological achievements, and other valuable skills for a fee that is set out in a contract.

Licensing lets the company set strict rules about how its processes and marketing policies are followed. It is also a convenient way to set up local production in the foreign market the company wants to reach without having to invest a lot of money. The most important benefit of organizing such activities is that they are cheap to set up, keep going, and keep an eye on.

The main problems with licensing are that it makes things less unique and makes control harder. After the contract is over, the partner becomes a competitor because he or she now knows all of the company’s strengths, has gained valuable experience in the field and knows how to use it. The most difficult aspect of the licensing strategy is ensuring that the partner, the licensee, follows the previously established work rules.

The major advantages of licensing for entering new markets include:
a) Get additional revenues for know-how
b) Cover foreign markets that cannot be covered by exporting due to some reasons
c) Expand business activity in the short term, not risky manner and without considerable capital investment
d) Create the basis for potential investments in the market
e) Save defined markets restricted by trade limits
f) Get a low political risk since the licensee is usually 100% locally owned
g) The licensing is extremely appealing for novices in international business

In contrast, international licensing has several disadvantages:
a) Lower profits than in other entry strategies
b) Zero control of the licensee manufacturing and marketing actions that lead to lower quality
c) Risk of loss of the trademark and reputation due to the partner’s incompetence

Franchising is a type of activity licensing in which one company (the franchisor) gives another company (the franchisee) the right to do business under its brand. You can just give someone the right to use the company’s trademark and products, or you can give them the whole business.

In fact, a franchise agreement is different from a license in that it has stricter rules for the middleman and a smaller scope. A franchising agreement is made so that you can open a new branch of your business and integrate it into the way you do business by making it follow its own rules. The licensing agreement gives the company’s intangible property more freedom to be used. The franchisee depends more on how well the franchisor (parent company) does. The licensee can use the license in markets that have nothing to do with the parent company. This makes him less dependent on the success of the parent company.

As a franchisor or licensor, your business effectively gives the licensee of the franchisee permission to:
a) Produce a patented product or patented production process
b) Use your know-how
c) Receive your technical and marketing advice and know-how
d) Use your trademark, brand, etc.

The major benefits of the international franchising strategy include:
a) Low political risk
b) Low cost
c) Possibility to simultaneously expand in many world regions
d) A successful partnership serves as a basis for further capital investment

There are several disadvantages of franchising:
a) It is complicated to monitor the franchisee’s activity
b) The possibility of legal controversy with partners
c) A challenge to preserve the image of the franchisor in a new market
d) Franchisees’ activity must be monitored and evaluated for simultaneous consultation and assistance.


Online sales are a convenient format for market entry, as well as for successful interaction for both buyers and sellers. Firstly, it removes geographical barriers and saves time finding and paying for the right product. Secondly, it offers endless opportunities to serve a huge number of clients at the same time 24 hours a day. Of course, provided that it succeeds in attracting and persuading site visitors to become buyers using effective marketing tools.

There are several different methods of online selling:
a) Create your own website in the export destination country which contains an online store, known as Business-to-Consumer.
b) Sell your product to leading eCommerce sites, which will further handle the marketing, sales, and distribution to clients, known as Business-to-Business.
c) Set up an online store within a major eCommerce site, known as Business-to-Consumer.
d) Sell your product through a third-party store or online supermarket, known as Business-to-Business-to-Consumer.

The main elements of online selling (4P Theory):
1. Product is what you sell by means of the Internet. It competes not only with other sites but also with traditional stores.
2. Price – the price on the Internet is lower than in a regular store due to cost savings.
3. Promotion is a set of measures to promote a brand or product online. It includes a huge arsenal of tools (search engine promotion, contextual advertising, banner advertising, email marketing, affiliate marketing, viral marketing, hidden marketing, interactive advertising, blogging, etc.).

4. Place is the point of interaction in the purchase decision (for example, site, landing, advertisement, social networking group, etc.).

The promotion of products or services on the Internet should be built taking into account the general rules and patterns of online sales. Firstly, you need to identify your target audience and direct your ads to it. Secondly, for a successful transaction, it is important to interest your potential buyers, start an interactive dialogue with them, and engage them in a sales funnel. For the convenience of customers, it is advisable to use as many channels of interactive communication as possible. Staying in touch with the buyer is necessary at all stages of sales and the after-sales period.

Thirdly, there is another important element of online sales. This is web analytics that provides information on the effectiveness of the taken actions. Analytics allows you to determine the performance of specific ads and the advertising campaign as a whole, i.e. to correlate the finances spent and the result obtained (customer growth, completed purchases).

Depending on the specifics of the business and marketing tasks, the most valuable information is conversion – the percentage of certain targeted actions (for example, calls to a specified number, clicks on an advertising banner, clicks on an online basket, etc.) to the total number of visitors to the resource. By seeing the dynamics of exactly which steps lead to an increase in conversion, you can more effectively build a marketing strategy and attract more buyers at lower costs. In addition, having noticed that the previously well-proven advertising message has ceased to generate leads (i.e., lead to the actions expected from the audience), it can be quickly replaced or adjusted.


Android News-jp offers its services in market entry strategy development for startups. Our team creates strategies considering a variety of components and factors. We adopt and adapt your products or services to satisfy the marketing needs in foreign markets. The generation of a market entry strategy encompasses a deep analysis of the industry, direct and indirect rivals, and potential clientele. Adloonix provides research on the digital local markets and can diminish the risks & extend the opportunities. For the majority of businesses entering foreign markets is inevitable since the international market offers more reasons and opportunities for growth and development.

Android News-jp team takes care of details. Therefore, it leads to greater success in the global market. Our firm recommends the following market entry cycle:
a) Brief: Discussion of the current business situation.
b) Market research: Data collection and profound survey to understand the industry, rivals, and perspectives

c) Presentation: Market research submission, discussion of all questions, unique value recommendations for the further development of your startup
d) Digital CX strategy: Planning and structuring of all necessary digital actions that are to be taken in the future of marketing strategy development
e) Analytics: Android News-jp provides analytics tracking for your business.
f) Traffic/Lead generation: Stimulation of the target audience’s interest to boost sales
g) Implementation: Launching a step-by-step plan


Before any product or service gains, the trust of a foreign market, market entry research is conducted to give a complete and reliable business environment assessment. Studying the competitive environment and market factors is needed to enter the market with fewer risks and higher profits.

It is the first and most significant step to the successful launch of a product or service in a foreign market. It is chosen and developed for each market and each product for a certain period of time to ensure the most profitable commercial activity in accordance with the situation and availability. Thus, all this requires the creation of a successful market entry strategy.


  1. Invincible season 2: everything we know so far
  2. Github nazis jan: GitHub fired a Jewish employee who called out
  3. How much does a monitor tech make:
  4. Why should a high-tech firm avoid selecting licensing as a mode of entry?
  5. What time is the georgia georgia tech game today:

Leave a Reply

Your email address will not be published. Required fields are marked *