Lack of contract production — in smaller control of firm of process of production and in loss of the potential profits connected with this production. At the same time it gives to firm the chance to develop activity quicker, with smaller risk and with introduction prospect in partnership with the local producer or purchases of his enterprise.
The majority of the firms leaving abroad begin with small Some adhere to this principle and further considering foreign operations as insignificant part of the business activity. Others nourish more grandiose idea, considering the foreign markets as equivalent domestic, and even surpassing it in value.
Having decided to be engaged in sale in this or that country, the firm has to choose the best way of an entry into the elected market. It can stop on export, joint business activity or direct investment for . Each subsequent strategic approach demands acceptance on itself the bigger volume of obligations and bigger risk, but promises also higher profits. All these strategy of an entry into the foreign market are given below with the indication of options of possible actions in each case.
At each country the customs, the rules, the ban. Before starting development of the marketing program. the seller should find out how the foreign consumer perceives these or those to goods and as it uses them. Here some examples of those surprises which the consumer market can present:
The term "market" in economic understanding means mutual satisfaction of requirements and interests of each party by means of interrelation and contacts of producers (the supplier, goods or services and the organizations (persons) interested (potentially interested) in acquisition of a concrete product or group of products, and also various services.
The fourth factor was degree of system effectiveness of the help to the foreign companies from the state accepting them, i.e. the existence of effective customs service, rather full market information and other factors favoring to business activity.
In - the second, the firm has to solve, whether it will be engaged in marketing in only several or at once in many countries. The hour company "Bulova" stopped on the last option and developed activity in more than hundred countries. Having too sprayed the efforts, she ensured profit only in two countries and suffered losses approximately in 40 mln. dollars.
Within economy like a subsistence economy the vast majority of the population is engaged in the elementary agricultural production. Big, made they consume part, and the rest directly exchange for simple goods and services. In these conditions to the exporter not many opportunities open. Among the countries with similar system of economy it is possible to call Bangladesh and Ethiopia.
Planning an exit to foreign markets, the figure of the international marketing has to study economy everyone interesting him: countries. Appeal of the country as the export market is defined by two characteristics.
At the same time a number of the countries formed economic communities the most important of which is the European Union. After creation of the EU there were also other economic communities among which it is possible to note the Latin American association of free trade, the Central American common market, etc.
Let's take for an example the Lamborgini market - the car worth more than 50 thousand dollars. In the countries of the first and second types it will be very small. The market of Portugal (the country 3 - type, the poorest country in Europe in which, however, is a lot of rich, caring of the social standing and prestige of the families capable of purchase of such car appears the largest single market for this car.