Reference no: EM131396001

There are basically three ways of entering the global market.  The first way is to merely have an Internet presence.  Orders can be placed and shipped anywhere in the World.  The belief is that if a product is great, the market will come to you based on word of mouth.  Under this scenario,  a company would suffer minimum risk in investing overseas.

The second way of entering the global market is by partnering with existing companies overseas. This reduces the risk of investing overseas but a company would share in the profits with their partner.  Another advantage with this structure is that the partner's name may be more familiar with the inhabitants of the targeted market  Disadvantages include sharing the profits with the partner and the risk that propriety information may be compromised.

The third strategy is to build facilities overseas.  This scenario is the riskiest if the company overstates the demand for their product but is also the most profitable if the product turns out to be a success.

Based on these three business strategies which one would you recommend for a company that would like to do business overseas? Must be very specific as to the nature of the company etc.

Please explain your answer.