Should Capital Insurance consider going international? If yes, what products/services should it offer internationally?
What will be an ideal response?
Capital Insurance should consider offering its financial services abroad only after it has resolutely ingrained itself as a successful and firmly established financial services firm in the United States. The firm should wait at least a decade to begin to offer its services internationally. Although international investment and business can be exceedingly lucrative, it presents scores of risks in the form of diseconomies of scale, political turmoil, changing laws and barriers, fluctuating currency rates, and uncertain foreign relationships. Also, when moving to target markets outside the U.S., Capital will have to consider the demanding and complicating enterprise of cross culture advertising, and new intense competition from foreign firms as well. When Capital does eventually penetrate international markets, they should become involved in international investment of institutional investors, and then, make their services available to smaller investors.
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What will be an ideal response?