Companies operate in international markets typically with two approaches
1 - REMOTE markets are remotely followed by the export commercial team
PROs: low costs, no direct exposure to local complexity
CONs: limited understanding of the territory and low level of control, limited basic network
2 - OWN SUBSIDIARY – opening a local company to localize the management of the market
PROs: develop local competence and direct relationships
CONs: cost of investment, full direct exposure to local complexity, time to build up expertise
The idea is to offer a “NEW SOLUTION” which leverages PROs and minimizes CONs of both approaches