Advantages and disadvantages of Exporting.
The advantages from exporting is that the organisation will have a quicker entry into the market and the levels of risk are subsequently lower. Exporting can be implemented via sales representative (direct) or an agent (indirect) that acts on behalf of the company and sells their products. The direct method of exporting, as opposed to indirect exporting, will benefit the company by gaining control over how they sell their products and the costs of the operations, i.e. overheads, commissions given, salaries. They will have ultimately achieved disintermediation.
This will however mean that the company will be more susceptible to risks that may affect the sales and the image of their company.
ComCorp will likely favour the direct export strategy as it is a relatively new competitor in the international market and only choose one target market: South Africa. The preliminary research shows that there is a steady increase in demand for computer peripherals within that market. “ Large number of buyers from Kenya, Uganda, Tanzania, Eritrea, Senegal, Congo and South Africa are seen buying large quantities of computer hardware and accessories…” (Africa-Business.com, 2013) ComCorp will
Overview of Strategic Alliance.
This takes place when two or more companies gather their respective resources, which is generally specialised, to form a new entity. The intention for this is to break into a new market where they may have identified a gap: potentially driving out competition due to strength in resources available at their disposal. It can also lead to market monopoly as there are no other competitors to exploit that particular market
Advantages and disadvantages of Strategic A...
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...ganisation assesses the market barriers, and formulates strategies which are executed with success; it will then have achieved market penetration.
The outcome brought about from trading business internationally is the phenomena known as globalisation. “Globalization is the trend toward greater economic, cultural and technological interdependence among national institutions and economies.” (John J. Wild, 2012) What we can understand from this statement is that the effects of globalisation are incorporated within different socio-factors which characterises any sovereign nation. Thus, whether it can be seen negatively or positively, the identity of a country becomes less apparent which will be discussed, briefly, at the end of the report.
Strategical geographically locations would lead to more profitability and increase demand for the organisation's goods/services.
• A more competitive, efficient and profitable business with less competition in the domestic markets.
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Exportation: This is the phrase in the team transfers team member’s expertise and enthusiasm to those members who will carry out the team’s activities by bringing the teams creation into display for the organization and the market place to buy in. It is bringing the team’s creation, activities to display. After this display the teams get feedback from the organization and the consumers about their product display. The main activities for the teams in this phrase include Task coordination and ambassadorship. The leadership activity here involves a lot of relating with the organization and the customers.
... and products. This will allow the company to increase its product line in order to respond to the change in consumer preferences, and also gain the right of patent.
“The entry of new competitors into the area is basically when a new business or organization begins and implies different increment of capacity. Many ideas have to be view when starting up such as economics, differentiation of production, capital needs, and cost of conversions and lack of distribution according to Porter. All these steps must be consider when becoming a new entrant.
Adding to overseas sourcing so that lead time could be faster for design and production they could also divide the business up and have different locations for orders and new products to make business faster and
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Exporting is the commercial activity of selling and shipping a good or goods to a foreign country. Importing is the commercial activity of buying and bringing in goods from a foreign country. The benefits of exporting and importing are good to a countries economy as it creates local jobs. The Honda plant in Alliston exports the Honda Civic (a three door hatchback and four-door sedan) as well it is the only facility in the world that builds the full-size Odyssey minivan and the Acura MDX sport utility vehicle.
These risks will have material effect on the organisation 's ability to sustain its business and operational goals and objectives.
The international business development has heightened the importance of international market selection (IMS) of companies, especially for their exporting strategy. However, not many companies really comprehend the geographical, social, economic characteristics of foreign countries in comparison with their home countries (Cavusgil, 1985). This fact has challenged many studies to create the optimal approach for IMS. The major question is: Which foreign market should a company enter? Thus, this report focuses on providing a practical consultancy to evaluate and determine its most appropriate foreign markets.
New entrants to an industry, with a desire to gain market share, will put pressure on prices, costs and capital needed to compete. It can affect the profit potential.
...ompletes an analytical assessment of a firm. A firm establishes its competitive building by investing scarce resources again and again in its value-added activities. By doing this the organizations will be able to give rise superior products and services that the buyer's desire and continue to grow the business and adhere to its strategic plan once implemented.
Globalization is an overwhelming trend. It is no doubt that there are many positives rise out of globalization, but equally some serious negatives brought from this trend, such as gradual disappearance of ethnic identity (Buckley, 1998). This essay is going to address some positive effects of globalization generally, and then it will focus on impacts of this trend on developing countries.
The company recognizes that it is subject to both market and industry risks. We believe our risks are as follows, and we are addressing each as indicated.
The market is not ready yet for more product lines even though the economy is growing because the purchasing power is not that strong compared with the ones in South America. Therefore there is not yet profit to gain by di...