ABSTRACT
A business model identifies customer needs and creates and delivers value to a segment of the market that is willing and able to pay, thus generating sales and profits for the firm. In the personal luxury sector, efforts have been made over the years to increase sales by selling accessories and licensed products that are less expensive. The international model underscores the liability of foreignness arising from distances and differences but this business model shows that foreignness is an asset rather than a liability. Global competition is motivating firms to seek innovative ways of entering new markets. Export managers have to decide which marketing functions are to be delegated to other intermediaries or partners and which are to be performed internally. The manufacturer incurs no start-up cost, and this method provides small firms with little experience in foreign trade access to overseas markets without their direct involvement.
