Topic > Entry mode strategies. - 886

Advantages and disadvantages of exporting. The advantage of exporting is that the organization will have a quicker entry into the market and consequently the risk levels will be lower. Exporting can be implemented through a sales representative (direct) or an agent (indirect) who acts on behalf of the company and sells its products. The direct exporting method, unlike indirect exporting, will benefit the company by gaining control over the way they sell their products and the costs of operations i.e. overheads, commissions given, salaries. Eventually they will have achieved disintermediation. This will however mean that the company will be more susceptible to risks that could affect their company's sales and image. ComCorp will likely favor the direct export strategy as it is a relatively new entrant internationally. market and choose just one target market: South Africa. Preliminary research shows that there is a steady increase in demand for computer peripherals within that market. “Large numbers of buyers from Kenya, Uganda, Tanzania, Eritrea, Senegal, Congo and South Africa purchase large quantities of computer hardware and accessories…” (Africa-Business.com, 2013) ComCorp will provide an overview of the strategic alliance. This occurs when two or more companies pool their resources, generally specialized, to form a new entity. The intention is to enter a new market where they may have identified a gap: potentially eliminating the competition through the strength of the resources at their disposal. It can also lead to monopoly of the market as there are no other competitors who can exploit that particular market. Advantages and Disadvantages of Strategy A...... middle of paper ...... the organization evaluates market barriers and formulates strategies that are executed successfully; will therefore have achieved market penetration. The result resulting from international trade is the phenomenon known as globalization. “Globalisation is the trend towards greater economic, cultural and technological interdependence between national institutions and economies”. (John J. Wild, 2012) What we can understand from this statement is that the effects of globalization are embedded in the various socio-economic factors that characterize any sovereign nation. Therefore, whether it can be viewed negatively or positively, a country's identity becomes less evident, which will be discussed, briefly, at the end of the report. Strategic geographic locations would lead to higher profitability and increase demand for the organization's goods/services..