Does Your Business Have a Domestic or International Flavor
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9. Does your product or business have a Domestic or International Flavor or both?
When starting a new business like the one we are starting up with the bicycle renting, you have to decide whether or not you want to go Domestic, International, or both with your product or idea. When doing this you will look at the pros and cons of doing both in both situations. I will share with you the decision whether to go with domestic or international and why we chose this and also why we didnt choose to go the other way.
Pros and Cons of Domestic
When starting up a new company it is very easy to just choose to go Domestic and be done with it, but even with this there are some negative sides. First less go over the positives likes the easy one which is how it is easy to find a target market. When you stay Domestic you can target your product to whoever is close and with this product that is the college students of Ball State University. The next pro to staying Domestic is that it will be easy to make a profit and also delivering the product to the costumer is much easier. With the customer so close it does not take much to get the product to the customer and to start making money. The last pro to going to domestic is that it is easy to predict the changes in the business environment. This allows us to change with whatever happens to the market like when it starts to get cold out and people might not want a bike we can prepare for that.
There are also some cons of going domestic like the first big one, when you decide to go Domestic you are limiting the number of people you can hit with your product. When staying Domestic it is much harder to expand. Another con is access to the material we might need including bike parts. We might also have to follow more stricter regulations on such things like employees wages.
Pros and Cons of International
There are also a number of pros and cons when doing business internationally that you will have to consider when opening a new business. Some of the pros of International are efficiency and how other countries do business. When you go international you can easily reach a new market that can really help you grow your business. Another pro is that there production of products are cheaper along with the labor.
The cons of International business include more competition when growing your business and you will have to decide if your business can handle that kind of competition. Another disadvantage to doing business in another country is the communication between each other. This is actually a big problem when doing business elsewhere because communication is important when operating a successful business. The last con for international is when doing business out of the country there might be lower manufacturing and labor standards, and when running a successful business