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Complete 8 pages APA formatted article: Market Entry Strategies. An indirect export is one of the five market entry strategies that can be implied by businesses while implementing global strategies. I
Complete 8 pages APA formatted article: Market Entry Strategies. An indirect export is one of the five market entry strategies that can be implied by businesses while implementing global strategies. In the indirect export strategy, there is a minimum amount of risk involved. On the other hand, the level of control of the market is also the least in this strategy. Market control is less due to the reason that products are being transferred abroad by other intermediaries (Levesque, 2004).
In this strategy, the organisation does not get involved in any type of marketing. No type of marketing or any other activity is conducted in the strategy of indirect exporting. The sales in such a strategy are conducted as sales in the domestic market.
Indirect exporting has the ability to invest in new markets and to do this they do not require any expertise or high amounts of investments. The strategy of indirect exporting is a common strategy initiated by organisations as a market entry strategy. If organisations become successful with the results of this strategy then they plan towards further agreements with the organisations of the host country (Terpstra and Sarathy, 2001).
Indirect exporting is conducted via sales organisations that are domestically located. The domestic sales organisation is considered to be an easy method of managing sales in foreign markets. In this strategy, products can be bought and sold in the domestic market and it can be resold in the foreign market. The firm that is exporting the products needs to be in touch with the marketing activities of the foreign market so that they are able to increase the sales of their products at a constant note (Raff, Ryan, and Stahler, 2009).
International trading companies is another form of indirect exporting. This type of indirect exporting is conducted by initiating local offices across the globe. Examples of international trading companies can be the Mitsubishi Company of Japan.
The international trading companies have the opportunity of addressing a huge market and hence this attribute makes them attractive distributors. Their attractiveness is also due to their credibility of information that they possess of the local markets (Cateora and Graham, 2002). .
