Discussion 8 : Global Marketing Management

Discussion 8

"Logistics, Distribution, Imports, and Exports" Please respond to the following:

· Amazon is known for having a very efficient and effective supply chain that delivers their products right the first time. Suggest at least three (3) logistical challenges a domestic company must consider prior to pursuing a global trade strategy. Next, compare and contrast the different direct or indirect strategies an import or export organization can implement to make the supply chain process more efficient. Be sure to state which strategies you believe are most efficient. Justify your response.

Response 1 (Jasmine) :

· Amazon is known for having a very efficient and effective supply chain that delivers their products right the first time. Suggest at least three (3) logistical challenges a domestic company must consider prior to pursuing a global trade strategy. Next, compare and contrast the different direct or indirect strategies an import or export organization can implement to make the supply chain process more efficient. Be sure to state which strategies you believe are most efficient. Justify your response.

                A domestic company must consider exchange rate fluctuations, security, and distance before pursuing a global trade strategy. Since the exchange rate can fluctuate, companies sometimes choose the fastest distribution method to secure the needed profit. If distribution is handled too quickly and not efficiently, it could result in delivery issues. Security is a challenge in a risky environment. It is a major concern in a country with lots of theft and war occurring. Distance is the most common challenge because the further the product must be shipped the cost increases. For example, when ordering something off Amazon, the shipping fee is higher for an item coming from overseas versus domestically. After those three challenges are addressed, the company can make an informed decision choosing the mode of transportation.

                Indirect exporting uses a third party or middleman to exchange goods while direct does not. For example, an export broker is someone who brings together a domestic manufacturer and an overseas buyer for an export sale and earns commission for establishing the contact that results in the sale. Direct exporting is handled by an in-house clerk that deals directly with the buyer and is responsible for the selling and directing of the export sales activities.

Response 2 (Edwin) :

Logistics, Distribution, Imports, and Exports

A domestic company needs to consider logistical problems before incorporating an international trade method. The three considerations include shipment, transportation, and traditions. First, a firm should consider the eligibility of shipping documents. The seller needs to verify the sending and clearing details of the client before shipping goods (Mangan & Lalwani, 2016). The papers must be assessed to establish their compliance with the nation’s policies. The authorities can incorporate strategies due to logistics changes before dispatching products to the clients (Mangan & Lalwani, 2016). The method is essential in reducing delays to prevent incurring additional costs.

Import and export corporations can incorporate different supply chain processes to enhance the delivery of goods. The direct logistic methods that can be utilized include wholesaling, distributing, retailing, and procuring (Mangan & Lalwani, 2016).  The indirect methods are export houses, including businesspersons and international corporations in the country (Mangan & Lalwani, 2016).  Comparison and Contrasting The primary similarity is that direct and indirect methods are global promotion entry methods that focus on shipment, organized settlements and controlling processes in the international industry.  The first difference is that the indirect strategy is appropriate for corporations that market facilities generate profits in the short-term (Manners-Bell et al., 2014). However, the direct promotional plan is suitable for firms that deal with physical items and are imported. The organizations focus on generating profits in the long-term. Direct methods are essential in assisting organizations in obtaining market knowledge and create distribution channels by managing the processing mediums (Manners-Bell et al., 2014).  Justification Companies need to create platforms for every industry to ensure that they facilitate international expansion. First, corporations need to designing effective domestic and global frameworks. Secondly, organizations need to implement international models to attain desired expectations (Manners-Bell et al., 2014). The operating structure should demonstrate the company’s planning methods for incorporating the global framework and connect the operations with corporate locations.  References Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management. Chichester: Wiley. Manners-Bell, J., Cullen, T., Roberson, C., & Kogan Page. (2014). Logistics and supply chain in emerging markets. London: Kogan Page.