Describe the
four-step process many managers use to achieve successful exporting.
Chapter 14
Exporting and Countertrade
#Cavusgil #3edition #ExportingandCountertrade
#Exporting #Countertrade #Chapter14
International Business: The New Realities, Global
Edition, 3e (Cavusgil)
Cavusgil, 3edition, Exporting and Countertrade,
Exporting, Countertrade, Chapter14
Answer:
ReplyDeletea. Assess Global Market Opportunity—Management assesses the various global market opportunities available to the firm. It analyzes the readiness of the firm and its products to carry out exporting. Management screens for the most attractive export markets, identifies qualified distributors and other foreign business partners, and estimates industry market potential and company sales potential.
b. Organize for Exporting—Managers determine what types of managerial, financial, and productive resources the firm should commit to exporting. Managers also try to establish a timetable for the firm to follow in order to achieve export goals and objectives. Managers also investigate how to implement exporting, either through indirect exporting, direct exporting, or a company-owned subsidiary.
c. Acquire Needed Skills and Competencies—Export transactions are varied and often complex, requiring specialized skills and competencies. The firm may wish to launch new or adapted products abroad, target countries with varying marketing infrastructure, finance customer purchases, and contract with helpful facilitators at home and abroad. Accordingly, managers need to gain new, internationally-oriented capabilities in areas such as product development, distribution, logistics, finance, contract law, and currency management. Managers may need to acquire foreign language skills and the ability to interact with customers from diverse cultures.
d. Export Management—Management formulates elements of the firm's export strategy. Product adaptation involves modifying a product to make it fit the needs and tastes of the buyers in the target market. For example, when Microsoft markets computer software in Germany, it must ensure the software is written in the German language. Marketing communications adaptation refers to modifying advertising, selling style, public relations, and promotional activities to suit individual markets.