Thank you for the opportunity to help you with your question!
another country involves many parameters such as :
distribution channel for that country from scratch. To country’s with an
advanced logistics system that might be an easy task but apart from USA and
west Europe that is not case for the rest of the world. Plus it cost money and
time (which is money) to do so . Furthermore having expertise on the matter for
one region (your domestic market for example) doesn’t mean you ll face the same
Target country’s market size isn’t be enough
to worth the trouble or at least to be a priority. Then why lose potential
income , just because you don’t want to be directly involved? Plus you are
building your brand name by having a presence and when you actually decide to
be directly involved you won’t start from zero.
Selling to intermediaries
also minimalisms the risk of doing it yourself. Of course it lowers the margin
of profits but the fact that you take no risk isn’t at all negligible
reason is faster expansion. By not being involved directly into another country
the cost for expanding through intermediaries is significally lower and allows
you to expand your production faster. Add to that the benefit of scale
production costs which will add to your entire profitability factor the
benefits are significant.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 7th, 2015
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