Entering the market

5 important questions on Entering the market

There are two ways of entering an export market. Which?

Direct export (to negotiate with your customers directly) and indirect (through a third party)

What is an advantage of direct export? And a disadvantage?

Advantage:
  • Own sales reps are totally familiar with the characteristics of your products and services
  • More control over the export process
  • Potentially higher profits 
  • A closer relationship to the overseas buyer and marketplace
Disadvantage
  • The high costs of travel/accommodation/interpreter etc.
  • Requires more time, personnel and corporate resources

The difference between an agent and distributor

An agent earns comission, or percentage of sales. A distributor buys and sells on his own account
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Indirect export collaborative methods

- Joint venture
- Export management company/ Export combination(emc)
- Merger

Name 4 types of legal export constructions

-licensing
-franchising
-contract manufacturing
-strategic alliances

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