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The techniques that companies can use to enter the market in other  countries would include the following: indirect/ direct export,  licensing, joint ventures, direct investment, and acquisition (Kotler,  Keller, Goodman, Brady & Hanson, 2019). All these listed techniques  have both pros and cons when It pertains to a company’s ability to enter  other countries. The three techniques that will be examined further in  this discussion board is Indirect/direct export and licensing benefits  and pitfalls.

Benefits

Indirect export benefits are it requires less investment needed to  operate as well as less risk since the seller already as relationships  abroad. For example, Summersby Beer was founded in Europe and since 2008  has been imported to other countries such as New Zealand, Australia,  Malaysia, Hong Kong, Taiwan, South Korea, Canada, and the United States.

Direct import benefits have a huge potential return by utilizing the  following methods to help the company enter other countries markets  including; domestic-based export department, overseas sales branch or  subsidiary, traveling export sale representatives and foreign-based  distributor or agent (Kotler et al, 2019).

Licensing benefits helps companies by utilizing its business  strategies in franchises that provide all the brand concepts to the  franchisee for a cost. (Kotler et al, 2019). A prime example would be  companies like McDonald’s, or Subway organization conducting business  around the world gaining more market shares and profits.

Pitfall

Indirect export pitfalls include the product/service not selling,  which causes the company to lose money that had been invested in selling  product/service from an international distributor (Kotler et al, 2019).

Direct import pitfall the company losing money that was invested in  building store space, warehouse in an overseas country and the business  fails to lead the company to take a huge loss because they were not  strategic in the roll-out of entering into that countries market (Kotler  et al, 2019).

Licensing pitfall would be making sure all the franchise follows the  same rule, regulations, and processes. Additionally, the issue would be  that from an operational standpoint challenge would be to get all the  franchising stores to follow and live by the functionality of the core  business.