Companies can use a range of business models to organize their direct exporting efforts for their market entry strategies. Some businesses have an export department within the company that is responsible for exporting activities. Others establish sales offices in the target market. This business model enables companies to organize distribution and marketing more effectively.
Is the FITTskills program for you?
Who is it for?
Developed by business for business, FITTskills meets the needs of those who are
- seeking to enhance their import-export career standing,
- new to exporting or importing,
- and those who simply want add to their expertise or gain valuable educational credits.
If a company wants to benefit from having personnel in the target market but does not wish to invest in sales offices, it can employ overseas sales personnel.
However, companies new to direct exporting should start by selling to an intermediary (distributor) or by contracting an agent. Agents represent the company on a commission basis and can engage in promotional work or help establish deals. Like distributors, they take on the selling responsibility for the exporter, but they do not act as a company customer.
The advantages and disadvantages of using agents or distributors are further discussed in the following video excerpt from the FITTskills International Market Entry Strategies Course.