Transactional and control

Context

A local presence is required to oversee the product and the distribution channels. Export transaction costs are lower than company switching costs (relocation of production.) The company has excellent knowledge of the foreign country. It already has established business relationships with several partners or clients and is in a position to both be able to undertake watch, research and market analysis activities and revise its strategy.

Suggested penetration strategy:

• Direct sale to a foreign client
• Sales office in the target country