Question

When deciding whether to go global, companies have to look at possible risks. Is there an example of a company that took a risk by entering a market and ended up benefitting greatly from it?

Answer 1

The possible risk that a major company face during the time they hit the global market. The risk are:

1. Foreign Exchange Risk, it is the major risk that each and every company faces when they hit the global market.

2. Political Risk, one of the major risk that company faces.

3. Payment and Delivery Risk.

4.Spot contract.

5. Forward contract.

6. Legal risk.

7. Settlement risk.

This are the major risk that are faces by each and every company that think to take its business in global market.

Their are many such examples that company took the risk and benefited later. For example Company like Lamborghini, they used to make tractor, when the owner of the company got humiliated by the owner of Ferrari than he decided to make car for his own purpose. Company took risk to entered into market of luxury car, they really dont have idea because they were the manufacture of tractor. And we all know rest is history. Lamborghini is the highest priced luxury car in the world. And short examples is YouTube. Larry page and Sergey Brin created the page. For taking longer time they sold the page in some millions. There were no one who understood the short video service call You tube, Google brought it by taking the risk and The rest is history. Without YouTube we cannot thik off. It is the necessary application in all smartphones that also inbuilt.