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Mona Pearl On Growth Models - Past, Present and Future: Where do Middle Market Companies Go For Global Expansion Expertise?
Date:6/30/2010

business model is inherently right or wrong. Yet, when presented with a set of facts unique to one business and one global market, it becomes remarkably clear which business model will deliver the desired results. Likewise, it is equally clear which business model will only lead to trouble. Traditional business models like import/export, outsourcing, franchising, licensing, and joint ventures are still excellent options for today's economy; however, their ability to maximize the potential of certain markets may no longer be possible. After all, it's a new world order with new players and a new playbook that necessitates new tools like emerging business models such as innovation, collaboration and mergers and acquisitions (M&A).

" Unlike traditional business models, these emerging models are not mutually exclusive. It's a matter of blending different aspects of each model to customize an approach that meets the unique circumstances of the overall corporate strategy and prospective market. Choosing the right recipe is fundamental to success. There is no room for error. So, be prepared to do some homework. Start with an internal look at resources, commitment, experience, and goals. Then, look at the proposed business activities, market opportunities, competition, regulations, tax advantages and other key factors", adds Mona Pearl.
   
When choosing a business model, it's always a tradeoff between control and risk. Increased control requires greater financial resources, which in turn opens the door to financial risk. In addition to financial risk, there is what is known as market risk, which also needs to be assessed. It results from holding back the resources necessary to achieve success in the new market. Ironically, businesses create their own failure by withholding resources out of fear of failu
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