The article on entering international markets continues, part 8
6. Direct EXPORTING
A. DIRECT: selling a product or service directly to a foreign firm by the home-country firm. Costs and prices may be lowest if production occurs in only a few locations around the world and the efficiently produced goods are exported to most markets. Pharmaceutical and clothing companies use this mode frequently for globalizing.
1. Sales Representatives/Paid by seller: foreign-based representatives who work on a salary/retainer plus incentive basis to locate buyers for a company’s products.
2. Distributors/Agents: purchase merchandise directly from the home-country firm to re-sell at a profit.
3. Direct Sales to End-User: A manufacturer of medical equipment, may be able to sell directly to hospitals. Other major end-users include foreign governments, schools, businesses and individual consumers.
ADVANTAGEOUS WHEN: there is limited sales potential in target country; little product adaptation is required; distribution channels are close to plants; there are high target-country production costs; there are liberal import policies; high political risk exists.
PROS:
1) No investment in foreign production facilities is required;
2) Maintain more control; minimized risk and investment; speedy entry;
3) Maximize economies of scale; to prevent competitors from gaining ‘first-mover’ advantages in new markets;
4) Gain information about foreign competition;
5) Stabilize seasonal market fluctuations;
6) Reduces dependence on existing markets.
CONS:
1) More expensive due to tariffs, marketing expenses, transport costs;
2) Sometimes difficult to coordinate the cooperation of exporter, importer, transport provider, and government;
3) Limited access to local information; company viewed as “outsider”;
4) Need to develop customer base and logistics of moving the goods overseas;
5) May be difficult to overcome trade barriers;
6) May lose control over product’s pricing and marketing;
7) Task of finding customers.
[tags] Market Entry, International business consultant, international business videos, what is international marketing, china podcast, international business podcast, global podcast, international marketing, international marketing tools, strategy, market research, international research, planning, international business, off shoring, outsourcing, Global business, marketing, business planning, marketing abroad, strategic consulting [/tags]
Your mode of describing everything in this article is truly good,
every one be able to simply understand it, Thanks a lot.
Nice replies in return of this question with solid arguments and describing all regarding that.
Amazing blog! Do you have any tips for aspiring writers?
I’m hoping to start my own blog soon but I’m a little lost on everything.
Would you recommend starting with a free platform like WordPress or go for a paid option? There are so
many options out there that I’m completely overwhelmed ..
Any tips? Appreciate it!
Having read this I thought it was really informative. I appreciate you spending some time and effort to put this article together.
I once again find myself personally spending way too much time both reading and
leaving comments. But so what, it was still worthwhile!
I could not resist commenting. Perfectly written!
This is really interesting, You’re a very skilled blogger.
I’ve joined your rss feed and look forward to seeking more
of your excellent post. Also, I have shared your website in my social networks!
Great website. A lot of useful info here. I’m sending it to a few buddies ans additionally sharing in delicious.
And naturally, thank you to your sweat!
Highly energetic blog, I liked that bit. Will there be a part
2?
You actually make it seem so easy with your presentation but I find this topic to be really something which
I think I would never understand. It seems too
complicated and extremely broad for me. I’m looking forward
for your next post, I’ll try to get the hang of it!
Heya i’m for the first time here. I found
this board and I in finding It truly useful & it helped me out much.
I am hoping to offer something again and help others
like you helped me.
I was reading through some of your articles on this website and I
conceive this website is real instructive! Keep posting.!
You’re so cool! I don’t think I’ve read something like that before. So great to find another person with a few unique thoughts on this topic. Really.. thank you for starting this up. This website is something that is needed on the web, someone with a little originality.
I blog frequently and I truly appreciate your information. This great article has truly peaked my interest. I’m going to take a note of your blog and keep checking for new details about once per week. I subscribed to your RSS feed as well.
I quite like reading an article that can make men and women think. Also, thank you for permitting me to comment.
You are so cool! I do not suppose I have read a single thing like that before. So wonderful to find somebody with some original thoughts on this subject. Seriously.. many thanks for starting this up. This website is something that is needed on the web, someone with a bit of originality.
I blog quite often and I truly thank you for your information. The article has truly peaked my interest. I am going to book mark your site and keep checking for new information about once a week. I opted in for your Feed as well.
Howdy! I could have sworn I’ve visited this site before but after going through many of the articles I realized it’s new to me. Regardless, I’m definitely happy I came across it and I’ll be book-marking it and checking back frequently.
Hi! I simply would like to offer you a big thumbs up for your excellent info you have here on this post. I’ll be returning to your web site for more soon.
This site was… how do I say it? Relevant!! Finally I’ve found something which helped me. Kudos.
I could not resist commenting. Perfectly written.
Excellent blog post. I definitely appreciate this website. Keep it up!
Good post. I am dealing with a few of these issues as well..
Everything is very open with a really clear clarification of the issues. It was truly informative. Your site is extremely helpful. Many thanks for sharing.
Your style is so unique compared to other people I’ve read stuff from. Many thanks for posting when you’ve got the opportunity, Guess I’ll just bookmark this web site.
Good post. I learn something totally new and challenging on websites I stumbleupon on a daily basis. It’s always interesting to read through articles from other authors and use a little something from other web sites.
You’re so cool! I don’t believe I have read a single thing like that before. So great to discover somebody with genuine thoughts on this subject. Really.. thanks for starting this up. This website is something that’s needed on the internet, someone with a little originality.
Hi there, I do believe your site may be having browser compatibility issues. Whenever I take a look at your web site in Safari, it looks fine however, if opening in I.E., it’s got some overlapping issues. I merely wanted to give you a quick heads up! Aside from that, great site!
I blog often and I truly appreciate your information. The article has really peaked my interest. I’m going to book mark your website and keep checking for new information about once a week. I subscribed to your Feed as well.
Oh my goodness! Amazing article dude! Many thanks, However I am going through difficulties with your RSS. I don’t know why I can’t join it. Is there anyone else having identical RSS issues? Anyone that knows the answer can you kindly respond? Thanx!
You are so awesome! I don’t think I have read anything like that before. So great to discover somebody with some unique thoughts on this subject matter. Really.. thanks for starting this up. This web site is one thing that is required on the internet, someone with a little originality.
I really love your blog.. Great colors & theme. Did you develop this amazing site yourself? Please reply back as I’m looking to create my own personal blog and would love to learn where you got this from or just what the theme is named. Thanks!
Good web site you’ve got here.. It’s hard to find excellent writing like yours these days. I honestly appreciate individuals like you! Take care!!
Very good post. I certainly appreciate this website. Thanks!
May I just say what a relief to uncover somebody who actually understands what they’re discussing online. You certainly understand how to bring a problem to light and make it important. A lot more people should look at this and understand this side of the story. I was surprised that you’re not more popular since you certainly possess the gift.
I’m impressed, I must say. Seldom do I encounter a blog that’s both educative and amusing, and let me tell you, you’ve hit the nail on the head. The problem is something that not enough folks are speaking intelligently about. Now i’m very happy I found this in my hunt for something regarding this.
Excellent post. I am experiencing some of these issues as well..
bookmarked!!, I love your web site.
This blog was… how do I say it? Relevant!! Finally I’ve found something which helped me. Thanks!
bookmarked!!, I love your web site.
Everything is very open with a really clear description of the issues. It was truly informative. Your site is extremely helpful. Many thanks for sharing!
I really like reading through a post that will make people think. Also, thanks for permitting me to comment.
Way cool! Some extremely valid points! I appreciate you writing this article and the rest of the website is very good.
I really like it when folks come together and share ideas. Great site, continue the good work.
Great post! We will be linking to this great content on our website. Keep up the good writing.
When I initially left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and now whenever a comment is added I get 4 emails with the same comment. There has to be an easy method you are able to remove me from that service? Thank you.
Hey! I’m Charles, and if you’re tired of the 9-to-5 grind and believe workplace coffee tastes like despair, I’ve got good news for you. Invite to the 1K a Day System, where we switch coffee for money circulation and desks for financial self-reliance. Are you prepared to trade in your tie for a ticket to freedom? Let’s turbocharge your earnings and have some fun along the method!
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me. phieuguige-grab-bat-net
Hi, it’s Charles here, pertaining to you from the land of limitless opportunity– or as we like to call it, the 1K a Day System. Here, we teach you how to earn more than a well-fed squirrel collects nuts for the winter. If you’re prepared to accumulate those digital acorns, hop on board! Let’s make your bank account as plump as those saucy animals by signing up today.
I was extremely pleased to uncover this website. I want to to thank you for your time for this wonderful read!! I definitely loved every part of it and i also have you saved as a favorite to check out new stuff in your web site.
Hello there! Just dropping in to commend your remarkable blog. Your expertise on making money online are truly impressive. Making money from home has never been more achievable thanks to affiliate marketing. It’s all about leveraging your online presence and marketing goods or services that resonate with your audience. Your blog is a invaluable resource for anybody exploring making money from home. Keep doing the amazing work!