iSeeit! Video Case: Global Entry Strategies When expanding into a global marketplace, North American companies must select a means of market entry. The decision between exporting, licensing, joint venture, and direct investment is based upon an organization's interest in maintaining marketing control and how much of a financial investment it is willing to make. This holds true for Five Bucks and Joe to Go, both of which are coffee retailers that want to enter emerging urban markets in India. Five Bucks prefers to maintain greater control afforded by a joint venture and is willing to take on greater financial risk. Joe to Go, on the other hand, is not as willing to take on high levels of financial risk and is willing to rely on its licensing partners, or franchisees, to effectively market and brand Joe to Go in India. Both options require thel local partners to adjust offerings that meet the needs of the local population while maintaining product, look, and experience similarities across global locations Once an organization has decided to expand into the global marketplace. It must select a method of market entry. Companies may choose from four general options: (1) exporting, (2) licensing. (3) joint venture, and (4) direct Investment. Deciding which option is right for an organization is based upon the level of financial commitment, risk marketing control, and profit potential Click the button to watch the video. Then, answer the questions that follow. of sai lt Joe to Go decides to produce its coffee bears domestically and sell them in India througti a retail Intermediary. This would be an example of O direct exporting lo a joint venture o direct investment indirect exporting O licensing 5t, ll Joe to Go is willing to acceptacyalties of tees for the use of its collee trademark and patents, it would be considering which strategy for intemnational growth joint venture O licensing O exporting O direct investment O global growth 5c Five Bucks prefer to maintain greater control afforded by and is willing to take on greater financial risk to continue its global expansion into India. By doing so, however, fivc Bucks will also have to share the profis, O exporting a joint venture Oexporting direct investment global growth 5c. Five Bucks prefers to maintain greater control afforded by and is willing to take on greater financial risk to continue its global expansion into India. By doing so, however, Five Bucks will also have to share the profits. O exporting O a joint venture O direct investment O global growth licensing 5d. Although it is the risklest strategy, the advantages of as a global market expansion strategy for Five Bucks would be cost savings, a better understanding of local market conditions, and fewer local restrictions. O exporting O a joint venture O direct investment O global growth O licensing