The first option allows the Canadian firm to retain full control over its manufacturing processes. It can leverage its biotechnology know-how and maintain a direct relationship with the production, ensuring quality and efficiency. However, relying solely on foreign sales agents for marketing might lead to challenges in understanding the European market and building effective sales strategies. The firm may face communication barriers, cultural differences, and potential issues in aligning the marketing efforts with the product's unique selling points. By establishing a wholly-owned subsidiary, the Canadian firm can have a deeper understanding of the European market, build local relationships, and customize marketing strategies to suit regional preferences. However, this option also comes with additional costs and complexities associated with setting up and managing a subsidiary in a foreign market. The firm will need
The first option allows the Canadian firm to retain full control over its manufacturing processes. It can leverage its biotechnology know-how and maintain a direct relationship with the production, ensuring quality and efficiency. However, relying solely on foreign sales agents for marketing might lead to challenges in understanding the European market and building effective sales strategies. The firm may face communication barriers, cultural differences, and potential issues in aligning the marketing efforts with the product's unique selling points.
By establishing a wholly-owned subsidiary, the Canadian firm can have a deeper understanding of the European market, build local relationships, and customize marketing strategies to suit regional preferences. However, this option also comes with additional costs and complexities associated with setting up and managing a subsidiary in a foreign market. The firm will need to navigate legal, regulatory, and logistical challenges.
Forming a joint venture with a reputable European pharmaceutical firm can be beneficial in several ways. By sharing manufacturing and marketing responsibilities with an established partner, the Canadian firm can tap into the partner's expertise, existing distribution channels, and market knowledge. This option may also reduce the initial financial burden of investment in manufacturing facilities. However, there could be challenges related to sharing intellectual property, decision-making processes, and potential conflicts if the visions of both firms do not align entirely.
Considering the unique biotechnology know-how of the Canadian firm and the potential complexities involved, a strategic alliance with a large European pharmaceutical firm seems like a prudent choice. This option allows the firm to access the European market with the help of an experienced partner, minimize
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