International Consolidation

INTERNATIONAL CONSOLIDATION

When you already export, international consolidation is an option to be valued

International consolidation is the objective of every company that goes international: first it begins by exporting on a continuous basis, and once its brands/services acquire the desired recognition by its target clientele in the new countries where it operates, it can already consider itself to be consolidated on an international level.
 

Options for your company to consolidate its internationalisation

The methods we can use at GLOBALARA to consolidate the internationalisation of your company are diverse and all have advantages and disadvantages.

1. If your company is a manufacturer that bases its activity on the production of goods 

A) Manufacturing agreements: manufacture your product in the destination countries through a local manufacturer. 

• Pros: requires less investment (you do not invest in fixed assets), allows your product to be promoted as manufactured in the country.
• Cons: quality control (you must invest in verifying that your quality standard is met), your technology/product can be "copied", the manufacturer can become your future competitor.

At GLOBALARA we select and negotiate a contract with the local manufacturer capable of meeting the manufacturing quality of your products and of reaching the production volumes you need to serve your local markets. 
 

B) Manufacturing licence: authorise a local company to manufacture your product (from the country where your company is located) by assigning patents, brands and know-how in exchange for royalties and the local company will be in charge of selling and distributing the product.

• Pros: requires less investment (you do not invest in fixed assets).
• Cons: less profits (royalties + technical assistance), the manufacturer-licensor can end up becoming your future competitor, the lack of control over marketing and distribution can affect the management of your brand.

At GLOBALARA we select and negotiate a license agreement with the ideal local manufacturer for the time horizon you decide.

C) Your own manufacturing centre: you create your own production centre in the country/countries where you are going to operate, providing the economic and management resources.

• Pros: total control over manufacturing, sales and distribution; allows you to take advantage of savings in labour and raw material costs; avoids import barriers.
• Cons: greater risk, greater investment.

At GLOBALARA we select the local company that can be acquired as a production centre, and we help you to manage the implementation/creation of the new production centre.
 

2. If your company is a service provider, GLOBALARA will help you to

• maintain the commercial relationship with your clients, 
• locate local partners with whom to collaborate to provide your services in the new foreign market
• create and develop your international service network

Choosing one or another formula to consolidate internationalisation depends on such relevant factors as the objectives you have set, your degree of knowledge of the new markets in which you are going to operate, the existence of import barriers and the repatriation of profits or the degree of country risk. GLOBALARA will provide you with comprehensive advice during the international consolidation process. We are specialists.

Contact GLOBALARA and find out in detail how we can help you consolidate your company's international position.