Some additional thoughts on foreign market entries … we’ve discovered that whatever operations a US-headquartered company establishes in a BEM such as, for example, South Africa, should be supported with training programs that not only provide career-building incentives for the workers, but also curry favor with the government in helping to educate and elevate the skills and marketability of the labor force however appropriately.
Further, it’s critical in most cases to set up joint ventures with in-country partners — for example, tightly integrated manufacturing operations (assuming a “product” orientation here) — even if only to a minor degree; the knowledge share alone can be a real boon, irrespective of actual profits. Also, engaging in-market distribution channel partners to move those products to consumers through established systems and storefronts is critical, and has proven a favorable path with a lot of companies using white- or private-label strategies. Which may sound obvious, but it’s easier said that done given a variety of factors, not the least of which are language barriers and cultural differences.
Posted by: Colin Mangham