Essay About Product Dependent And Entry Approachexporting

Marketing – Candy Bars
There are basically five approaches for entering an international market; usually the choices and risks are very product dependent.  Assume you are a consultant specializing in global logistics and distribution.  There are four clients that are planning to enter an international market (China) with different products.  Using the following factors for your choices, pick any two clients and complete their matrix below with your recommendations and briefly describe the rationale behind your choices. Entry ApproachExporting, Licensing, Management contracting, Joint Venture, and Direct Investment.Shipping MethodsTruck, Rail, Water, AirLevel of RiskHigh, Medium, LowClient #1 Product: Candy BarsDecisions to consider:Your recommendation:Your rationale:Entry Approach Licensing, Management ContractingHave proof that it is a licensed Company and need consumers to help contribute the product out to sell to customers. So require a legal contract between both parties.Shipping Methods Air, Truck  Would only use air because of Climate change. Candy could melt or freeze depending on weather and where you shipping the product. Truck for deliveries to store.Level of product or market risk MediumUse labels and marketing on wrapper to keep selling. Level of financial riskLowIt is air product and USPS overnight. You using a tracker to make sure it gets delivered to the customer.Factors that could affect distribution service levels Transportation, Customer ServiceTransportation can run late and never get out in time. Customer can have a bad candy bar. Client #2 Product: Golf ClubsDecisions to consider:Your recommendation:Your rationale:Entry ApproachJoint Venture, ExportingExport to distribute products to consumers and have multiple investors Shipping MethodsTruck, Rail, Air All these methods work wonderfully. Except water. It can rust the Golf Clubs. Level of product or market risk HighUse a shipping method and package product correctly to not damage or scratch. Level of financial risk HighHas a money back guaranteed  Factors that could affect distribution service levelsCostCan loss more money then what you receive in this line of business.  Client #3 Product: Golf Balls