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Scenario:
I have a small cleaning equipment manufacturer that currently sells to retail establishments and public facilities throughout North America. My firm is considering expanding sales into Europe, first establishing a market in France. I have already received inquiries. However, this will be my first venture overseas, and hoping it is the beginning of my long-term presence globally.
I have four options. Each strategy has different costs, requirements, risks, and rewards. Which strategies would you recommend as the best way for my firm to enter the European Market? Explain your recommendation and why that strategy is best for my company at this time.
1. Establish our own sales distribution network throughout that market.
2. Establish a joint venture with a partner in that market.
3. Contract with an Export Management Company to sell our product in that market.
4. Open my own wholly owned subsidiary there.
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