International Entrepreneurship The benefits and obstacles of foreign markets
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
International Entrepreneurship
The benefits and obstacles of foreign markets
Entrepreneurship In General
Advantages
◦ Working Autonomy
◦ Challenge and Achievement in a start-up
◦ Complete financial control
Disadvantages
◦ Personal sacrifices
◦ Burden of responsibility
◦ Small margin of error
Ability to transplant established ideas
Vast opportunities to develop new markets
Lax restrictions on business permitting
Benefits In Foreign Markets
Scarcity of skilled/trained workforce
Language and cultural barriers
Different set of laws and practices
Obstacles in Foreign Markets
Founded in 2005
Cancun, Mexico
Primary business:◦ Property Management
Secondary business:◦ Vacation Rentals
Case Study: Platinum Properties
Since 2000, the number of luxury condominiums in Cancun had grown to nearly one thousand units.
Only one company had been providing management services to the existing units.
No English speaking, American owned business in the field.
Step 1: Identifying AnOpportunity
Legal Services◦ Business License
All Inclusive◦ Immigration/Work Visa (FM3)
Accounting Services◦ Knowledge of Foreign Owned Company codes◦ Reciprocal Tax liabilities with United States IRS
Step 2: Setting Up Shop
Websites◦ www.platinumproperties.com.mx◦ Travel networks
Flyers
Brochures
Step 3: Marketing The Services
Price◦ Price for service was premium, higher than others
English speaking, American owned
Onsite office/Resident◦ Only onsite manager, only resident/owner
manager
Creating A Competitive Advantage
Market
◦ First time owners lacked prior experience
Commodity business
◦ Lower barrier to entry
◦ Competed with lower labor costs
Employee issues
Rule Changes
Setbacks
Rental Superiority
◦ Host of 2007 CIBC World Market Conference
Reputation in business community
◦ Access to many new opportunities
◦ Desire to do business
The Knowledge
◦ Priceless
Successes
Venture & Expansion Capital
◦ Real estate
◦ Established businesses
Active global investor
◦ Mexico/Latin America
◦ Asia
◦ United States
Life After Mexico
Related Documents
