Venture forthe consumer directed5/5/2023 ![]() With direct exporting, organizations must be comfortable with a substantial element of risk.Ī direct exporter of products must assume responsibility for all losses during shipping and storage overseas. These factors might also seriously impact profits made in the market. In these situations, organizations should consider another strategy.ĭepending on the market selected, the distance goods must be transported and the means of transportation, direct exporting can make goods too expensive for customers to purchase. If the target market has different regulations, legal systems, cultures or ways of conducting business, and the organization is inexperienced in international trade, direct exporting might be very difficult and risky. To appropriately promote and price goods and services, considerable time must be spend researching the market.ĭirect exporting can be very successful if the selected market is readily accessible and has similar regulations and customs to the organization’s country. These tasks are time consuming and require skill to perform correctly-mistakes can result in serious business losses. Although not all will have the necessary resources in terms of skills, knowledge and finances. Direct exporters must make the export sale, arrange for shipping and insurance, organize permits and licences, prepare all the paperwork and process the letter of credit that provides for payment. An organization of any size can start direct exporting activities. The inability to rely on intermediaries, who will be representing other organizations and may not operate in the best interests of the exporting organization When is direct exporting a suitable strategy?ĭirect exporting is a simple entry strategy, potentially suitable for organizations wanting to expand their market share or maximize profits.
0 Comments
Leave a Reply. |