Establishing a Sales and Distribution Presence Abroad
Who can afford not to be global in the 21st century? What about your competitors? Can you afford to let them grow not only in their own markets but also in your own?
There are several different ways to market your products abroad, ranging from exporting from your home country using your own sales force all the way to operating a business unit abroad. Several alternatives exist in between these two extremes. Each option has advantages and disadvantages. They all have one common characteristic: the decision will have far-reaching consequences for the shareholders.
The analysis is essentially a comparison of the different alternatives and their ranking in terms of potential shareholders’ value creation. The process involves the following steps.
Review of needs: what are the key reasons behind the decision to export?
Profit expectations: what are the senior management’s expectations?
Risks tolerance: what happens if the project needs to be aborted?
Evaluation of options available: pros and cons
Examples of Establishing a Sales and Distribution Presence Abroad
Click on an example below to read more.