Maria Tropiano
Saturday, June 8, 2013
Marketing Research Application #2

1. Market Entry Strategy: which global market entry strategy will be most effective and why?
The globalthoughts.com and the quickmba.com websites outline several different global market strategies. These strategies include: exporting, licensing, franchising, foreign direct investment, strategic alliances, and joint ventures. Exporting is “the marketing and direct sale of domestically-produced goods in another country” (quickmba.com 1), and is used more often by small companies, licensing “is best used by those companies that have a component of intellectual property,” (globethoughts.com 1), franchising requires lower startup costs for the franchisor but limits the amount of money that can be made, foreign direct investment “is the direct investment of facilities in the target country” (quickmba.com 3), strategic alliances “are simply a business-to-business collaboration” (globethoughts 3), and joint ventures are the “formation of a third independent company owned but not necessarily managed by the partners” (globethoughts.com 2). After reading and analyzing information on these global marketing strategies, the most appropriate and effective strategy for Temple University’s expansion abroad would be the strategic alliance strategy. The strategic alliance strategy would allow each campus of Temple University to collaborate toward common goals “while remaining apart, distinct,” and independent as opposed to the joint venture strategy which would involve the creation of a third company and would require the two companies to invest in each other, which would ultimately demand more finances and would not be as cost-effective. In addition, the smallbusinessnote.com website offers that “especially in a time when growing international marketing is becoming the norm, these partnerships, for