The manufacturer assumes distribution of his products/services on the foreign market without assistance of a third party.
Advantages:
- no dependency of a local partner
- no profit sharing
- high flexibility – commercial strategy may be adapted autonomously
- high product knowledge
- direct contact with customers
Disadvantages:
- the investment in the market entry has to be made before there is any (certainty regarding) the turnover
- a number of fixed/overhead costs
- limited market knowledge
- slow market building
- no complementarity with other products allowing for a full offer and cost sharing with other suppliers