This report aims to examine partnership arrangements and clearly identify advantages and disadvantages in terms of entering the export market. Besides, it is necessary to have a competent understanding of how Zen Plastics would successfully go into the export market and what they do to achieve this. Critically look at Zen Plastics’ s structure to see if the exporting is a suitable strategy for the firm concerned.
The partnerships that Zen Plastics could enter into
In some countries Zen Plastics cannot sell directly to the end user but must use a local agent or representative. Thus, they should enter into some partnerships. It is possible for Zen Plastics to use manufacturer’s representative or sales agent in local area. In other circumstance, the foreign distributor may purchase the product from Zen Plastics and is always responsible for payment of the item being exported. Accordingly, joint ventures might be a common way for most of exporting companies when two businesses in different counties get together to start a new venture. This method normally follows one route such as licensing, franchising, industrial co-operation and contract manufacture. As for Zen Plastics, licensing, franchising and contract manufacture would be the appropriate ways to be taken into account. The owner of the licence grants someone the rights to produce goods using that licence. The owner of the licence allows other manufacturers to use the character in return for payment of a fee. In a word, the licensor won the rights and the licensee buys the rights. A franchise operation comprises a franchiser and a franchisee. The franchiser owns the rights to the products and sells these to the franchisee. This is used by exporters to get into overseas markets that are protected by tariffs or other barriers. It involves the manufacturer placing an order for the production of agreed items in another country.
The export facilitating companies that could assist Zen Plastics... [continues]
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