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Quite often, the difference between success and failure in international markets is related to the business model chosen. There is not just one proven way of doing business abroad. Exporting is just one of many market entry modalities to be considered. The firm can export directly orindirectly, but also import, subcontract, enter into a manufacturing licensing agreement, create an alliance, invest in a factory etc. If need be, the business model can differ according to each product-market couple. To choose the business model which is most suited to your international project, certain factors must examined: factors relating to your:

• Firm and its Products/Services
• Target Market
• Business Environment

Used by heads of corporations and international consultants, the Mercadex-Desjardins Model^TM is a tool that facilitates the choice of the most appropriate international business model. The model is made up of the following two dimensions: the level of integration and the firm’s entry modality into the host country.

A- Level of integration: to what extent can the firm or should the firm engage itself (presence, visibility, involvement) in the host country?

The factors relating to the firm, the market and to the environment will help determine the level of integration:

1-    Delegation
2-    Cooperation
3-    Control

B- Entry modality: how can the firm or should the firm approach the host country?

The factors relating to the firm, the market and to the environment will once again help determine the entry modality:

1-    Transactional
2-    Contractual
3-    Structural

A thorough evaluation of these two dimensions (level of integration and entry modality) helps to define the most appropriate models among the 9 main internationalization strategies. If you wish to define the best model for doing business internationally or validate your existing strategy, contact a Mercadex consultant to help you with this analysis.