Exporting from the US Pros: transportation costs would be low. Since it would be produced locally, we would also be able to maintain control of the technology, quality, and production process. More jobs would be created. Cons: Cost of exporting goods would be higher and we would have to comply with the tariffs and regulations to export our goods. Labor cost, shipping & distribution would make price of our good higher. Taste and preferences is different in every country/nation so we would have to possibly change our models to fit those taste of Western Europe. License a European firm Pros: Low startup cost if working with a manufacturer so pricing would remain to a minimum. Gain name recognition in European countries, which will help with our expansion. Working with a company that's knowledgeable in the market Cons: Less control over production cost, quality, and technology. Licensing would require discloure to our technology & competitive advantage would decrease if they use our information improperly. Setting up subsidairy in Europe Pros: Guarantees that critical knowledge won't be mishandled. Allows close control of technology, quality, and production process. Cons: More costly & timely approach. Would have to start manufacturing and marketing in a new territory, not conducting proper research of our target market in this new area could result in creating a negative image to our firm. I personally would recomment that we go with licensing a European firm since I think it would be the least cost effective move, plus I would assume that we would be working with experts in this field as well. Also by manufacturing through a firm, we could start to gain some sort of attention from our target market in other nations, and know the taste and preferences of our consumers. please help reply to this discussion post
Exporting from the US
Pros: transportation costs would be low. Since it would be produced locally, we would also be able to maintain control of the technology, quality, and production process. More jobs would be created.
Cons: Cost of exporting goods would be higher and we would have to comply with the tariffs and regulations to export our goods. Labor cost, shipping & distribution would make price of our good higher. Taste and preferences is different in every country/nation so we would have to possibly change our models to fit those taste of Western Europe.
License a European firm
Pros: Low startup cost if working with a manufacturer so pricing would remain to a minimum. Gain name recognition in European countries, which will help with our expansion. Working with a company that's knowledgeable in the market
Cons: Less control over production cost, quality, and technology. Licensing would require discloure to our technology & competitive advantage would decrease if they use our information improperly.
Setting up subsidairy in Europe
Pros: Guarantees that critical knowledge won't be mishandled. Allows close control of technology, quality, and production process.
Cons: More costly & timely approach. Would have to start manufacturing and marketing in a new territory, not conducting proper research of our target market in this new area could result in creating a negative image to our firm.
I personally would recomment that we go with licensing a European firm since I think it would be the least cost effective move, plus I would assume that we would be working with experts in this field as well. Also by manufacturing through a firm, we could start to gain some sort of attention from our target market in other nations, and know the taste and preferences of our consumers.
please help reply to this discussion post
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