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Product lines tend be complementary rather than competing and appeal to the same customers giving the exporting company immediate access to foreign markets (Indirect Exporting, n.d).
In conclusion the article states that the paramount consideration in determining whether to market indirectly or directly is dependent on the level of resources a company is willing to devote to its international marketing effort. The size of firm, the nature of products and the ultimate goal of the organization also needs to be taking into account when ultimately choosing between direct and indirect exporting. Through indirect exporting a firm is likely to lose control over sales and is removed from personal contact with the customer. Thus direct exporting may be a preferred approach to exporting.
Many of the issues stated in this article relate to the conditions present in USA. Exports remain an important growth vehicle for U.S. companies, as many domestic product and service markets are saturated and offer only limited growth prospects. Today, many smaller firms export occasionally and seek to develop permanent, recurring business in foreign countries. Other companies only export to a few countries and want to increase the number of countries in which they do business. Fifteen percent of U.S. exporters account for 84% of the value of U.S. manufactured exports. One-half of all exporters sell in only one foreign market. Fewer than 20% of exporters and fewer than 3% of U.S. companies overall,...
These associations are composed of competing manufacturers for the purpose of exporting. The associations are exempt from U.S. antitrust laws relating to price setting, discounting, and customer information. Export trading companies (ETCs) were also created in 1982 by the U.S. government to help U.S. manufacturers compete with powerful Japanese conglomerates. These companies are similar to EMCs but are on a larger scale.
The reason for choosing this article is the very fact that it conveys in a very logical manner the different types of methods available for indirect exporting along with defining their advantages and disadvantages. The reader is easily able to compare and contrast different types of approaches and therefore gain an understanding of the entire procedure involved in this mechanism. Finally the article concludes with a personal experience that can help the reader form their own conclusion as to whether indirect exporting is actually the most beneficial choice or not.
References:
Indirect Exporting, n.d. Advantages and Disadvantages to Indirect Exporting Export Intermediaries:
Pros and Cons by Laurel Delaney, About.com Guide http://importexport.about.com/od/DevelopingSalesAndDistribution/a/Indirect-Exporting-Advantages-And-Disadvantages-To-Indirect-Exporting_2.htm
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