3. a small canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the european community market. its choices are given below. the cost of investment in manufacturing facilities will be a major one for the canadian firm, but it is not outside its reach. if these are the firms only options, which one would you advise it to choose? why?
a. manufacture the product at home and let foreign sales agents handle marketing.
b. manufacture the products at home and set up a wholly owned subsidiary in europe to handle marketing.
c. enter into an alliance with a large european pharmaceutical firm. the product would be manufactured in europe by the 50/50 joint venture and marketed by the european firm

Question

01-07-2017
Business

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3. a small canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the european community market. its choices are given below. the cost of investment in manufacturing facilities will be a major one for the canadian firm, but it is not outside its reach. if these are the firms only options, which one would you advise it to choose? why?
a. manufacture the product at home and let foreign sales agents handle marketing.
b. manufacture the products at home and set up a wholly owned subsidiary in europe to handle marketing.
c. enter into an alliance with a large european pharmaceutical firm. the product would be manufactured in europe by the 50/50 joint venture and marketed by the european firm

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YellowGold YellowGold · Answer 1 · 2017-07-14T21:30:41+02:00

I would recommend this option.
c. enter into an alliance with a large European pharmaceutical firm. the product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

Their market is in European Community. If they partner with a large European pharmaceutical firm, the reputation of the firm will secure their European market. They will be able to minimize their costs because of the joint venture. In the event that the new medical product will be highly in demand not only in Europe but also in other continent, the small Canadian firm will also be able to partner with big Pharmaceutical companies in any continent to manufacture and distribute their products.