Argentina 1

Crystal Rodriguez, Connor O’Neill, Megan Rositano, Sarah Bean

Professor Jacobus

Management 80

23 March 2018

Market Entry Strategy Analysis: Ready Meals in Argentina

A. Introduction

The purpose of our report was to analyze the Argentinian ready meal market and

determine the best points of entry for a U.S. based firm selling ready meals. Several of our group

members had previous experience with South America and specifically Argentina. That

experience encouraged a more in-depth analysis of the country along with increased personal

engagement. Had our group picked a mundane country like Canada, our project would have

ended up being less thorough. In addition, we were interested in how well ready meals would

perform in an emerging/transitioning economy. Especially considering Argentina is very rooted

in its traditions. Would urban populations accept convenience products if it meant losing

traditional dinners? Research shows the urban populations in Argentina are steadily becoming

more and more accepting of ready meals. Not only that, but urban populations continue to grow

within Argentina; a sign of future potential. Most ready meal manufacturers have combined the

traditional with the new by incorporating authentic foods into their ready meals. If our company

was to enter the Argentine market, I would adhere to this strategy. Based strictly off the culture

and cost concerns, I would market our products as having been made with authentic recipes. Not

only would this boost our appeal to a traditional consumer, authentic recipes tend to be very cost

efficient. Authentic food made by your average consumer 20 years ago were being made with the
 Argentina 2

lowest quality ingredients to ensure affordability. We can tap into that sense of nostalgia by

doing extensive research into how different cities make different food and create unique products

for every major city/region in Argentina. Only through a regional micro marketing strategy can

our company optimize its net sales. A potential counterpoint to this business plan is the cost pf

R&D to find all these different recipes. However, all our most viable entry modes involve hiring

locals. Locals working in coordination with R&D departments will be best equipped to recreate

recipes without requiring extensive amounts of market research.

Some of the challenges our firm will face include the unpredictable Argentine economy,

the country’s physical infrastructure, and its communications infrastructure. The economy’s debt

defaults, high inflation rate, and the government’s possible alteration of economic records all

pose challenges for the firm’s entry into Argentina. The physical infrastructure may be a

problem, seeing as only 30% of roads are paved, and transporting frozen meals may be costly if

it takes longer to reach destinations, due to unpaved roadways. Finally, the communications

infrastructure seems to be behind many other developed countries, and advertising may be issue

prone, since TVs are not as prevalent in Argentina as in the U.S., for example.

Based on our analysis, our firm foreese minimal operational problems. One of the most

revealing parts of our operations analysis is how much of the product could theoretically be

purchased directly from Argentina. Because Argentina exports soybeans, wheat, and meat

products, our firm has the opportunity to purchase goods from firms that manufacture within

Argentina. Manufacturing within Argentina would be cost effective (considering we would avoid

transporting goods, paying tariffs, paying taxes, and experiencing higher labour costs.)
 Argentina 3

The discoveries we found while analyzing operations helped factor into the decisions

made regarding our preferred methods of entry. We decided that our optimal forms of entry are

Greenfield wholly owned subsidiary and a licensing deal. Both of these modes of entry allow our

firm to produce products in Argentina, lower costs, and avoid trade restrictions. One thing to

consider is how the local government will view our firm. One important step in gaining the

public's trust is to cooperate with the government. By establishing greenfield operations in

Argentina, our firm is signaling it’s intention to maintain a close, long lasting relationship with

the country. On the other hand, a licensing firm might be considered stronger for the local

government because it prevents profits from leaving the country. It should be noted that both of

our preferred entry options are likely to be well-received by the local government, that is not an

accident.

Going off on a tangent, working within Argentina will give our company the unique

opportunity to develop community relations through outreach programs. Because our outreach

can occur from within Argentina, our CSR reports will be more authentic. In addition, by treating

local labour humanely, we’ll encourage productivity and goodwill.

All in all, I would recommend entering Argentina with ready meals. I believe if done

correctly, our products would sell extremely well, and our supply chain would be very simplistic

because we would manufacture and sell in the same place. Product distribution is well

established by competitors. Overall we risk the threat of market oversaturation, but I believe

we’ve identified a more efficient way to produce and a niche product that will sell.

B. Market

Target Market for Ready Meals

 Argentina 4

Argentina has “Income distribution [that is] more equal than ... most Latin American

countries, with a broad and deep middle class that enables more consumer buying power”

(Export.gov). Our target market for ready meals is Argentina’s “broad and deep middle class.”

These are the households that can afford electricity and freezers, and therefore are ready to

utilize ready meals. In addition, the bulk of Argentina’s population, and therefore its middle

class, is located within urban centers (92% of the population is rural)(CIA.Gov). The urban

population is easier to ship to because our company will be able to use established supply lines.

In addition, the populus in large cities such as Buenos Aires are easily accessible through

nautical shipping routes. ​“Ninety percent of the Argentine population is concentrated in urban

areas, with over 40 percent living in Buenos Aires and its suburbs, and approximately another 30

percent in the cities of Córdoba, Rosario, and Mendoza combined” (Export.Gov).

One positive factor affecting our market is that “The number of couples without children

and single-person households will continue to gain ground over the forecast period. This trend

strongly favours ready meals since this class of consumers has no interest in cooking and has

sufficient economic resources to purchase these products” (Passport).

The global ready meal market is expected to reach “143 Billion dollars” by 2023

(Business Wire). It’s not hard to imagine our company could grow to expand out of Argentina.

As consumers become more and more comfortable with being in single households, and women

are further encouraged to become their own source of income, it’s easy to see why the global

market for ready meals is forecasted to increase by 10% over 5 years (Business Wire).
 Argentina 5

In the past, a large chunk of ready meals are consumed by single households. Members of

single households tend to work for themselves and therefore have less time to prepare meals, and

oft rely on ready meals. In Argentina, divorce was recently made legal so single households are

rapidly increasing. It is important not to discount multi member households. There are large

portions of the population that exist as traditional family units. When considering family units

the target market should be the adolescents. Studies show that children and teenages effect 80%

of purchase decisions within family structures. All in all, our target market is the middle income

single and family households in urban areas.

2. Drawing on information contained in your MIR and BEAR reports, give your

best estimate of the total potential market for the product in your country

a.) Households with 1 person - 2.7 million (main target). As aforementioned our target market is

single households.

b.) Households with 6+ people (Families) - 1.394 Million (secondary target). Even though this

appears to have a market share of only half the single households, 6+ households are more than

likely to have multiple income streams and tend to consume far more products. This market,

although smaller than single households, has the potential to be very lucrative.

c.) Urban Households - 13 million. On a broader scale our target is urban households, which

totals to be 13 million.

Below is a chart listing households with disposable incomes above $35,000.

 Argentina 6

3. Identify your main competitors

Competitor #1 Molinos Río de la Plata : Gallo

Company website : ​http://www.molinos.com.ar/nuestras-marcas/gallo.aspx
Products Rice
Country of origin :Argentina
Global : No

Competitor #2 Mccain Foods ltd

http://www.mccain.com.ar/productos
Products : Various ready meals
Country of origin : Canada
Global : Yes

Competitor #3 Molinos Río de la Plata : Matarazzo

http://www.molinos.com.ar/en/our-brands/matarazzo.aspx#
 Argentina 7

Products : Pasta
Country of origin :Argentina
Global : No

Competitor #4 Unilever : Knorr

https://www.unilever.com.ar/brands/our-brands/argentina/knorr.html
Products : Pasta, Soups, Broth tablets, Oven meals, etc.
Country of origin : Switzerland/Germany/Austria
Global : Yes

Competitor #5 : Buenos Aires Food SA

http://www.bafsa.com.ar/
Products : Pizza
Country of origin : Argentina/ Buenos Aires
Global : No

Competitor #6 : General Mills : La Salenta

https://www.lasaltena.com.ar/
Products : Tapas, Pasta, etc.
Country of origin : U.S. ( Although the brand is from Argentina)
Global : Yes
Analysis of Competition

As a very successful U.S.-based company that sells ready meals in Argentina, General

Mills is definitely a company our firm can learn from. Their shipping and product differentiation

can be copied and improved on. One thing that I noticed about all of the competitors is that they

sell mostly Italian food (pastas or pizza). This is a cultural adaptation, much like how Oreos

changed their cookies to match the market they were selling in. Because Argentina was

colonized mostly by Italy, many of their customs and food has its roots in a combination of

Italian and native Argentinian culture. By taking into account the preference for Italian food the

firm will be able to sell more. We should also consider purchasing one of the smaller local firms

and using a more authentic and established brand name to sell more products.
 Argentina 8

Advantages

a.) We will be able to operate more efficiently because we will specialize in only selling

to Argentina.

b.) Our products will be highly micro-marketed to consumers.

c.) Our products will be cheaper and more authentic.

Disadvantages

a.) We lack the capital funding of larger firms.

b.) We will susceptible to market changes, because we will be specialized. A lack of

redundancy and flexibility could be our downfall (Our firm may be unable to function as an

organism as discussed in TED talks.)

C. Challenges

When entering a new market, many challenges face the company. Through our analysis

of the Argentine market, some challenges have appeared that may affect the market readiness for

frozen ready meals. Specifically, the Argentine economy, physical infrastructure, and

communications infrastructure pose challenges to entering the Argentine market.

While Argentina’s economy is growing, there are many issues surrounding its economic

system that may affect the success of market entry. Since the 2000 economic crisis (Country

Watch), Argentina has defaulted on debts often: “​the failure to settle creditor claims incurred in

the wake of Argentina's sovereign default in 2001 spurred the United States to withdraw trade

privileges” (Country Watch). This 2001 debt default was the largest in history, according to

Country Watch, and thus shows that the Argentine economy​ presents a serious risk. Additionally,

given that the ready meals are produced and based in the U.S., which has previously cut off trade
 Argentina 9

with Argentina, there is cause for concern that Argentina could default again, and trade barriers

could be put back in place. The uncertainty of trade with Argentina presents a strong challenge in

entering the marketplace.

Another challenge presented by the Argentine economy is its extremely high and

unpredictable inflation rate. As of 2017, the inflation rate was at 26.9%, or approximately 27%.

This is astronomically high, and therefore worrisome for potential investors and businesses

looking to invest in the Argentine market. In comparison, the United States’ inflation rate is

2-3% annually, as opposed to Argentina’s whopping 27%. The unhealthy inflation rate affects

consumers, because their purchasing power declines greatly. This is a challenge for entering the

retail market; if consumers’ purchasing power declines significantly, there often is a decline in

purchasing overall. Additionally, the effective exchange rate has significantly appreciated since a

January 2014 devaluation, so it may cost us more to be converting between USD and ARS,

Argentine Pesos (Country Watch).

A final challenge regarding Argentina’s economy is the rumored manipulation of

economic records by the government (Country Watch). This accusation is troublesome, and

presents a challenge because all of the economic information the business environment analysis

report includes may have been altered, and investors may be relying on false information. The

International Monetary Fund and World Trade Organization had issue with this, and this

potential tampering caused the European Union to question trade agreements with Argentina.

This sort of unreliability and possible dishonesty by the Argentine government regarding

financial statements is cause for concern for those interested in entering the Argentine economy.

Due to these accusations, and other factors, the U.S., EU, and Japan filed a WTO trade complaint
 Argentina 10

against Argentina and won. Argentina’s “lack of transparency…adds to business uncertainty”

(Country Watch), and those entering the Argentine market need to be aware of all the challenges

and potential economic issues that may arise.

Argentina’s physical infrastructure may be a potential challenge in distributing and the

success of the product. First, according the CIA Factbook, only 30% of the roads in Argentina

are paved. The transportation of the products may prove difficult, given that getting frozen ready

meals to stores must be timely so that they stay food safe. However, that 70% of unpaved roads

may only be covering the rural areas of Argentina, so if the company possibly sticks to

urban—therefore, paved—areas, it may not affect distribution too greatly. This still may prove a

challenge, though, since expansion to rural areas may be necessary for the ready meals’ success.

In that case, transporting the frozen meals to more rural areas may require expensive equipment

and methods—such as freezer trucks—to ensure they do not thaw and spoil in transit.

Finally, the Argentine communications infrastructure is quite behind that of other

developed countries, which may make product advertising difficult. With only about 50% of the

population watching TV in their homes, television advertisements may not be as effective as

other higher TV-watching markets. Much of food advertising is often based on television

advertisements, and this may put the marketing of the frozen meals behind other food products.

It is often very successful to advertise food with visuals of what people are getting, but radio

advertising may be more effective since around 81% of households have radios.

D. Operations

Exporting to Argentina requires careful adherence to regulations. A firm is required to

request approval for sales and foreign currency from the Argentine Tax and Customs Authority
 Argentina 11

(AFIP)(This process is completed by the firm doing the importing). A policy created by GOA

links approvals to the trade balance and foreign exchange levels. Whether or not a firm is

approved for impots can change based on the timeframe in which the request was processed.

Filed by the US, EU and Japan, a pending WTO final resolution on a trade complaint against

Argentina exists. If the resolution is favorable for the U.S, firms could seek to benefit from the

opening of trade restrictions on imports.

Argentina’s main exports are corn, wheat, soybeans, and meat products. All of these

resources are key ingredients in ready meals themselves. Further, these plentiful crops are also

used as feed for livestock produced (Britannica). In terms of employees, 15-64 year olds make

up 63.79% of the population, and there is a 98.1% literacy rate across the population. These

population demographics lend themselves well to a potential workforce. Approximately 30% of

the roads in Argentina are paved (CIA). Therefore, getting frozen ready meals to stores could be

a large issue if the roads going into most of the stores are unpaved.

Brazil is a possible nearby country that would be appropriate for offshoring production.

Brazil and Argentina share a border and have coastlines, so goods could be shipped by land or

sea between the two. Brazil exports more than it imports with $182 billion in exports and $135

billion in imports. Among its top exports are soybeans ($19 billion), raw sugar ($10.4 billion),

and poultry meat ($6.13 billion). Following the China and the United States, Argentina is the

next most exported to country by Brazil with $13.4 billion in exports to Argentina (OEC

atlas.media.MIT).
 Argentina 12

Brazil’s Exports:

(OEC atlas.media.MIT)

Argentina is part of an economic and political trade bloc called MERCOSUR, which

includes Brazil, Paraguay, Uruguay, Venezuela and Argentina. The purpose of this bloc was

initially to improve relations between Brazil and Argentina. According to the Treaty of

Asuncion, the bloc allows for “free movement of goods, services, and factors of production

between countries.” Further, the countries in the bloc took out customs duties and put into place

a common external tariff and a common trade policy outside the bloc. This regional agreement

would be of great benefit if we chose to offshore production in a neighboring country such as

Brazil because of the free movement of goods without duties (Council on Foreign Relations).

US Patents and Trademarks do not carry over protection in Argentina, as registration and

enforcement of IP must be done under local Argentina laws. The United States cannot enforce IP

rights for private individuals in Argentina, and Intellectual Property is seen as a private right in

Argentina. It is recommended that local Argentina IP attorneys be brought on for counsel when

dealing with Argentine IP laws. Patents are granted and trademarks are registered on the basis of
 Argentina 13

first-to-file, first-in-right. However, it’s not like we’re selling a product that is reliant on

protected IP. Our brand and product will not have as much value as say a tech company’s ip

would.

The current administration, the Macri government, encourages foreign direct investment

and has created reforms that “reduce economic distortions, increase capital market efficiencies,

and improve the transparency of regulatory and administrative processes.” The administration

has also made it a point to engage more deeply in the G20, WTO, and OECD. Argentina is

cooperating more with its partners, including the USA.

FDI is regulated by the Commercial Partnership Law, as well as the Argentina Civil and

Commercial Code. There are very few limitations on sectors that a foreign private entity can

enter. The transport and media industries are limited for full foreign equity. ​Foreign companies

are limited to 2,470 acres of productive land. Therefore if our ready meal company was to use

Argentine crops as ingredients, we must consider how much land would be necessary for

farming in order to determine whether we should set up a farm or purchase crops from a local

source.

Argentina is widely diverse both linguistically and ethnically, making marketing to the

whole population complex. Our ready meals must therefore appeal to the diverse cultures of the

country as well as the non-Spanish speaking populations. Argentine culture is one that revolves

around meals, specifically dinner, so ready meals will need to appeal to the meal-centric culture

in which some large families do not have time to prepare complex meals. Dinner takes place late

in the evening, and this fact lends itself to the advantage that ready meals presents. Ready meals

can take away the stress of cooking after a long day of work at a tired time of night. Because it is
 Argentina 14

a culture of naps, eating dinner late makes sense, but time is still always of the essence. The

company needs to consider the cultural practices of Argentina when entering the market instead

of entering applying American cultural norms to this market because Argentinians are not in the

same situation as Americans in terms of this product.

Our company would employ personnel from the US and the host nation Argentina.

Argentina’s workers are highly educated, in fact they are one of the most highly educated

workforces in all of Latin America. The country is a part of the International Labor Organization

and has been since 1919. Argentina’s labor laws protect Argentina’s workers, and there are

relatively high social security and labor taxes for workers. With a 7.6% unemployment rate,

there are workers in Argentina that could be employed that currently are without a job.

Organized labor is a large part in labor-management, and unions are allowed to negotiate

collective bargaining agreements. These negotiations are usually driven by the market, but the

Ministry of Labor sometimes ratifies negotiation.

We would also employ personnel from the US in order to have our own representatives in

Argentina to maintain company goals. These US personnel would likely consist of a few

managerial positions for strategic planning, but we also see that it is important to employ host

country managers so local personnel needs and cultural understandings could be represented at a

management level in the company.

E. Entry Modes

Identify which of the following modes of entry are appropriate for your country,

and which are not. Recommend the two entry modes your team believes are

the most appropriate, and why, including identifying the advantages and
 Argentina 15

disadvantages of each mode.

1. Exporting, which is sending the good to another country for sale, would be appropriate for our

country because then operation would stay in the host country and the big thing that would have

to be researched in the consumer tastes and cultures in order to insure that the food will appeal to

them.

2. Countertrade, which is international trade by goods and services rather than currency, would

not be appropriate for our country because we first would have to find a good that equates to our

product, which is ready meals, and then find a wholesale to trade our products with. And the

value of these products may change over time.

3. Greenfield wholly owned subsidiary, which is when parent country builds its operations in

Argentina from the ground up, would be appropriate for our country because our country,

Argentina, approves of foreign direct investment, and would allow us to control the company but

also have a presence in the country.

4. Acquisition or merger with local firm - is the process of acquiring a company to build on

strengths or weaknesses of the acquiring company. A merger is similar to an acquisition but

refers more strictly to combining all of the interests of both companies into a stronger single

company. An acquisition or merger would be appropriate for our country because doing so

would help our brand awareness but also help the local firms stay competitive in the market.

5. Turnkey project - It is a contract under which a firm agrees to fully design, construct and

equip a manufacturing/ business/ service facility and turn the project over to the purchaser when

it is ready for operation for a remuneration. This is not an appropriate mode of entry for our
 Argentina 16

country because in order to do this we would have to find a firm that is dependable within the

country to build the facility which can require more time.

6. Licensing is a business arrangement in which one company gives another company

permission to manufacture its product for a specified payment. This is an appropriate mode of

entry for our country because it allows for us to expand into the country in a faster and simpler

way while still contributing to the Argentinian economy. It also again helps with brand

awareness and also appeal to the Argentinian consumer.

7. Franchising is a form of business by which the owner (franchisor) of a product, service or

method obtains distribution through affiliated dealers (franchisees). Franchising is appropriate

for our business because it can help our company expand quickly throughout Argentina and

allows for Argentine citizens to become a franchisee, which stimulates their economy and will be

a positive view by their government of our product.

8. Joint venture, partnership, etc. is a commercial enterprise undertaken jointly by two or more

parties that otherwise retain their distinct identities. This would not be appropriate for our

country because a being a new and upcoming company, it would not be beneficial to jump into a

joint venture when attempting to enter a new market, especially when the product needs to build

some brand awareness of it own first.

The two methods of entry that we find to be most appropriate are a greenfield wholly

owned subsidiary and licensing. The reason that we find a greenfield wholly owned subsidiary to

be one of the best methods of entry for our product is that it allows for us to have control over

the manufacturing happening in Argentina, but also saves us money on exporting and

transportation had we decided to not build a facility there. The advantages of this method is that
 Argentina 17

it allows us to enter the Argentine market directly, reduces costs, and allows for us, the company,

to advertise and market easily to that population. As stated in an article, “A company that gains

entry into a foreign market through a greenfield investment has total control over the products or

services manufactured or sold. This includes control over product quality and rates of production

and control of the rate at which the company expands its presence in the country. The company

has the option to begin its operations on a small scale and then gradually increase its presence or

prepare in advance for a large scale rollout of the company’s products” (Maverick). Marketing to

the Argentine population is also extremely important so that is why having on site location can

be so beneficial. Having this “on-site presence can also make it more adept at crafting

advertising and marketing efforts with maximum effectiveness within a specific market

environment. It also affords the opportunity to form partnership efforts with native businesses to

gain further market penetration. The cost of using intermediaries to conduct business is virtually

avoided altogether” (Maverick). The disadvantages to this method is that it is more costly,

competition will be difficult, it may take years to enter, and the barriers to entry can be costly for

the company.

The second mode of entry that we find to be beneficiary is licensing. Licensing would

allow for company to allow another to manufacture their product which would be beneficial for

our company because we would save costs of infrastructure and transportation that would be

spent if we were to build a facility in Argentina from the ground up. In an article discussing the

advantages and disadvantages of licensing, it states that “If you license your process out to

another company, you're not committing your own money and time to producing the goods. The

licensee does, while you receive royalty payments. That can be an excellent deal, particularly if
 Argentina 18

actual manufacturing is outside your company's skill-set. Licensing lets you profit from the

process while keeping your company focused on what it does best” (Sherman). Basically, by

choosing to license the product, the company would save money and put more of a burden on the

licensee to sell and commit money to the product. The disadvantages are that you are essentially

giving part of the control of your product to someone else, and that licensee can become your

competitor with the knowledge they have over your company and product. It must be noted that

when a company decides to license, “One risk of licensing IP is that you lose more control than

you expected. Suppose you grant the licensee the right to assign the license to someone else. A

big company buys up the licensee and, presto, they assign themselves the right to use your

process. Another possibility is that the licensee goes bankrupt. In the bankruptcy hearing, the

license could easily be assigned to one of its creditors” (Sherman). So those are the advantages

and disadvantages of entering the market using those two methods.

F. Final Analysis

Yes, we have identified a niche market in which we can flourish, and we therefore

recommend that we enter Argentina’s market. The efficiency at which this firm plans to operate

will set us apart from the competition. Our unique product marketing strategy will help the firm

overcome an already saturated market. A Greenfield wholly owned subsidiary will be the most

appropriate entry mode. Being able to control every aspect of operations will be key in

maintaining efficiency. In addition, Argentina’s government prefers we enter through Greenfield

operations because it puts direct capital investment into their economy. Greenfield operations

allows our firm to build excellent public reputation through various potential outreach programs.

The ready meals will be micro-marketed based on different regions to ensure authenticity (Much
 Argentina 19

of this is covered in the introduction). Different recipes will be formulated to best emulate

traditional cooking and keep prices low. Altogether, Argentina is ready for

Sarah-Connor-Megan-Crystal Inc. (SCMC).

G. References

Bibliography

“Argentina - 1-Openness to, & Restrictions Upon, Foreign Investment.” ​Export.gov​,

Department of Commerce, International Trade Administration, 20 Nov. 2017,

www.export.gov/article?id=Argentina-openness-to-foreign-investment.

“Argentina - Protecting Intellectual Property.” ​Export.gov,​ Department of Commerce,

International Trade Administration, 2 Oct. 2015,

www.export.gov/article?id=Argentina-protecting-intellectual-property.

“Argentina -9.2- Labor Policies and Practices.” ​Export.gov​, Department of Commerce,

International Trade Administration, 20 Nov. 2017,

www.export.gov/article?id=Argentina-labor.

“Brazil.” ​The Observatory of Economic Complexity​, Collective Learning,

atlas.media.mit.edu/en/profile/country/bra/.

Donghi, Tulio Halperin, and Robert C. Eidt. “Argentina.” ​Encyclopædia Britannica​,

Encyclopædia Britannica, Inc., 19 Mar. 2018,

www.britannica.com/place/Argentina/Agriculture-forestry-and-fishing.
 Argentina 20

Felter, Claire, and Danielle Renwick. “Mercosur: South America's Fractious Trade Bloc.”

Council on Foreign Relations​, Council on Foreign Relations, 26 Dec. 2017,

www.cfr.org/backgrounder/mercosur-south-americas-fractious-trade-bloc.

Irwin, Terry. “Acquisitions and Greenfield Investments – the Pros and Cons | TCii Strategic and

Management Consultants.” ​TCii​, 6 Jan. 2013,

www.tcii.co.uk/2012/10/23/acquisitions-and-greenfield-investments-the-pros-and-cons/.

Maverick, J.B. “What Are the Benefits for a Company Investing in a Greenfield Investment?”

Investopedia​, 13 July 2015,

www.investopedia.com/ask/answers/071315/what-are-benefits-company-investing-greenf

ield-investment.asp.

Sherman, Fraser. “Advantages & Disadvantages of Licensing the Rights to the Company's

Production Process.” ​Chron,​ 16 Mar. 2018,

smallbusiness.chron.com/advantages-disadvantages-licensing-rights-companys-productio

n-process-15460.html.