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When QueenLand Sugar decides to use direct export entry strategy, it has to directly participate in marketing and selling of its products in the Abu Dhabi Market, this is because the company is the one carrying out the export work. This will therefore call for the formation of an export department within the company that will have to carryout duties like: market contract, market research, export documentations, distribution and pricing of the products (Child and Faulkner, 2001, 87).
This method of market entry carries the following disadvantages to the company, it will have to use more resources in terms of human resources and capital and at the same time it has higher risks.
However, it has a number of advantages, which includes: Increased volume of sales, better marketing information better control of its operations in the foreign market and increased.
To carry out a direct exporting approach, the company will as well be required to have its representatives in the new markets. The company can achieve this through several ways, as listed below:
In this case, the independent distributors will purchase products from the company and resale them on their domestic market, this can be exclusively or non-exclusively.
This is a market entry strategy that has very minimal risks as well as market control. Indirect sales can be carried out, using these methods:
QueenLand Sugar will as well be spared the expenses of forming in-house capability in exporting. Another thing about this method is that it entails commission as the form of payment and this commission can vary according the products being exported. As explained by Hill, (2009) export management companies deal with varied but matching product lines, this means that they can usually benefit from better foreign market representation as opposed to one producer.
As it has been discussed, there are various foreign market entry approaches that QueenLand Sugar can use when entering a new market. Each approach carries a certain level of risks as well as obligation from Apple Inc. Generally, entering a foreign market is a process that can only be achieved through various stages. Normally a company starts with indirect exporting to assess its product’s performance on the foreign market, if the performance is good, the company then gets into more commitment which can be through foreign manufacturing of its products (Mellahli, 2004). The best method will be based on the benefits the entry method offers, and the extent at which QueenLand Sugar wants to have its presence in Abu Dhabi Exchange Market.
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