Their export strategy aimed to provide a turnkey solution to emerging broadcast and media entities, offering to custom design, manufacture, install, and test broadcasting systems.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Continuing growth means increasing sales, and a chance to take advantage of the experience curve to reduce the per-unit cost of products sold, thereby increasing profits Wheelen et al, A corporation can grow internally or it can grow externally.
Nowadays, growth usually has international implications. A corporation can select from several strategic options the most appropriate method for it to use in entering a foreign market.
There are six methods of entering a foreign market; exporting, licensing, franchising, joint ventures, turnkey projects, and wholly owned subsidiaries.
Exporting is becoming increasingly popular especially for small businesses because of modern communication, transportation technologies, and gradual decline in trade barriers.
By expanding the size of the market, exporting can enable a firm to achieve economies of scale, thereby lowering its unit cost Hill, Firms that do not export often lose out on significant opportunities for growth and cost reduction Pope, Exporting is sending goods and services from one country to another Daniels, et al According to Campbell et al,it is the transfer of goods services across national borders from the home production facilities.
As said before, exporting is one of the methods to enter foreign markets and it has become a growing trend for companies which are large and small. There are many specific goals by doing this, but the main reason is to guarantee the long-term sustained growth for their business.
But like other methods to enter foreign markets, it has advantages and disadvantages. According to Johnson et al, and Hillthese can be summarized as follows: These tariff barriers can make exporting uneconomical.
The firm wishing to export must identify and avoid the major problems that that are often associated with doing business in a foreign market. This is also necessary to understand the element in export strategy. Aside from these problems, there are some pitfalls that exporters often face.
According to Daniels et althese are; 1 failure to obtain qualified export counselling, 2 insufficient commitment by top management, 3 insufficient care in selecting overseas agents or distributors, 4 neglecting the export business, and 5 failure to treat international distributors.
To avoid some of the pitfalls of exporting such as lack of knowledge and access to distribution channels, many exporters use local agents or distributors.
But, as mentioned above it is important to choose right agents or distributors and treat them. According to Agarwal et al,exporting allows significant management operational control but does not provide as much as marketing control, because the exporter is farther from the final consumer and often must deal with independent distributors abroad that control many of the marketing functions.
Studies have shown that while many large firms tend to be proactive about seeking opportunities for profitable exporting, systematically scanning foreign markets to see where the opportunities lie, many medium-sized and small firms are very reactive Cavusgil, One reason for more firms are not proactive is that they are unfamiliar with foreign market opportunities; they simply do not know how big the opportunities actually are or where they might lie Julien et al, Common pitfalls include poor market analysis, a poor understanding of competitive conditions in the foreign market, a failure to customize the product offering to the needs of foreign customers, lack of an effective distribution program, a poorly executed promotional campaign in the foreign market, and problems securing financing.
Exporting, Advantages and disadvantages of exporting, Common Pitfalls of Exporting Essay by dcc, B, February download word file, 4 pages download word file, 4 pages 2 votes5/5(2).
This entry is part 9 of 11 in the series Common Mistakes Newcomers to IDM Make Part 9 of my series on common mistakes newcomers make in Identity Manager. . Essay Questions (p.
) Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters? Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries.
Few realize the amount of management .
What is the hardest part of writing a top notch capstone project You are going to face many pitfalls and difficulties as you are writing this acade 60+ Personal Narrative Essay Topics + Bonus Tips.
Analysis Of The Advantages And Disadvantages Of Exporting Marketing Essay. Print Reference this. Disclaimer: the first time exporters is to identify the opportunities associated with exporting and to avoid many of the associated pitfalls is to hire an export management company (EMC) who act as the export marketing department or.