Managing International Markets: The Traditional Approach

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

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