Should a South African transport company risk expanding to the United States?
Should a South African transport company risk expanding to the United States?
Just five years after its launch, Palogix International, a transport business primarily serving South Africa's agriculture industry, was generating $1.6 million in annual revenues. In 2008, Robert Liebesman, Palogix's founder, met with farmers in California's Central Valley region to assess the possibility of entering the US market. But how would Liebesman fund his company's expansion? And what strategy should he pursue: could he enter the market gradually, or was an aggressive entry necessary for any real chance at success? In this case, students analyze the risks and opportunities of a US expansion, including questions of pricing, financing, market potential, and business models.
About the Author(s)
