Module 05 Global Expansion Project - Organizational Structure, Operations, and Finance

Running head: STRATEGIZING GLOBALLY

Strategizing Globally

International Business

Jeff Rover

Rasmussen College

Direct Exporting Marketing Strategy

The ultimate goal for each and every starting company is to take a global perspective with regard to distribution and overall market network. Most companies that start from the grassroots have this ambition even though it may evaporate as the costs and the diseconomies of scale set in. for most companies however, they may hold on to the tail end of their bargain by strictly following specific strategies that will catapult them into this market. Oriol Technologies is one of those companies which has established a well-structured market appeal locally while it is also finding its feet in the national market. More so, the local and national appeal presumably are playing a role in its contemplation of breaking into the international market. This paper analytical discusses the specific strategies that are feasible for Oriol technologies to realize its global dream in the long term.

Direct exporting is a common and highly reliable strategy of capturing the diversity of the international market because of its use of agents who are well averse with the prevailing market conditions abroad. These agents are important in forming a bridge between the company that is in the process of establishing its market abroad and the customers of the products in question. In this case, the Oriol Technologies will seek to directly get into contact with the customers abroad through a number of channels aimed at establishing confidence and loyalty to the customer base. More so, cooperation is also vital in this process because the manner in which customers will be initiated into the process will eventually determine its scope with regard to success or failure (Linoff & Berry, 2011). Direct market strategy primarily implies that Oriol Technologies will be responsible for a wide range of practices such as conducting the market research, proceeding with the foreign distribution, handling the logistics and shipment and ultimately collecting the payment in return. This is also helped by the fact that there is a contact with the customers who are responsible for selling the product that the company deals with.

The ultimate success of this strategy will be hinged on the following activities such that the expansion agenda of the entire process is both smooth and streamlined to remain in tandem with the objectives that the Oriol Technologies seeks to achieve in its global scope. First of all, direct exporting will involve the hiring of the export sales manager. In order to streamline the activities at the very foundation of the process, it will be vital to have both the administrative help and support as well as export sales manager. These two will work through a close cooperation with one another. The export manager will specifically lead and direct all the export sales activities (Delaney, 2017). However, he cannot perform all this if he cannot marshal support from the administrative department because of the necessity of having knowledge of the other country’s laws on the conduct of business activities.

In essence, the administrative department involves the legal aspects as well. Secondly, there will be an establishment of an export department. This will be self-contained with a typical operation that will be independent of the domestic operations. Such an establishment will be key in differentiating between the abroad operations and the home operations as well as checking on the aspects that can be borrowed from home an applied in the international market. Eventually, through this process, there is more protection for the patents, copyrights and trademarks as cooperation from these experts will come in handy. Thirdly, setting up an export sales subsidiary. As aforementioned, the export subsidiary is key in separating the export activities from the activities within the firm (Hoffman & Novak, 2009). Such separation is also important in the identification of aspects that consumers in both sides prefer since consumer behavior in all markets is almost the same.

In a bid to increase consumer awareness with regard to the goods that are available in the market particularly factoring their distinct features a foreign sales branch will be formed. Such a framework will be vital for handling sales, providing a smooth distribution network and above all making promotional advances to capture the changing consumer tastes and preferences. The foreign sales branch will also be structured in a way that it crisscrosses over a specific geographic area as well as selling to the target customers of the Oriol Technologies. This will involve the input of the distributors, wholesalers and agents who have a better knowledge of the geography of the area as well as the cultural and social aspects that may also influence consumer purchasing habits. Once the process kicks on, it easier to expand beyond because the manner in which the firm is in direct contact with the consumers leads to the elimination of the intermediaries, the profit margins therefore increases coupled with more control on the aspects that have a big influence on the company.

References

Delaney, L. (2010). Advantages and Disadvantages to Direct Exporting. Retrieved from: https://www.thebalance.com/g00/g00/g00/direct-exporting-advantages-and-disadvantages-1953310

Hoffman, D. L., & Novak, T. P. (2009). Flow online: lessons learned and future prospects. Journal of Interactive Marketing, 23(1), 23-34.

Linoff, G. S., & Berry, M. J. (2011). Data mining techniques: for marketing, sales, and customer relationship management. John Wiley & Sons.