Instructions Application of Chapter 5 Material As a first step into the domestic
ID: 349024 • Letter: I
Question
Instructions Application of Chapter 5 Material As a first step into the domestic Indian market your company decides to export products to India. Refer to the U.S. Government website - Doing Business in India and then discuss the pros and cons between hiring an Agent to represent your company in India or to using an Indian distributor. The link to Doing Business in India is provided below. You may need to go outside of Desire to Learn to activate it. http://www.export.gov/india/doingbusinessinindia/index.as Doing Business in IndiaExplanation / Answer
India is a developing country and enter into the Indian market in foreign the most complicated tasks as indian market is very widely distributed into many regions as well as the availability of the pre existing comparators is a very huge.
Hiring an agent could be beneficial as well as disastrous for any exporting company which is exporting goods to India.
Some of the main advantages of hiring an agent for the exporting company are as follows.
Agents have a very wide network of connections and can easily distribute the product among various market structures.
Usually the prices of Agent are very low as of the high competition involved in the Marketplace.
Indian agents are very well known for creating highly efficient structure of managing business connections which improve the overall compatibility of the organisation in the Indian market.
Hiring an agent would also be beneficial as company would be benefited by the experience of the specific agent in the similar field.
Some main advantages of using distribution system in India for distributor goods are as follows
Distributors have a very large amount of business in India. As marketplace is very big and overall usage of distributor based network in business is extreme.
Distributors are very very known of the market in wire and also provide a better distribution across verified available retailers.
Many retailers contact single distributor which directly increases profit generated by the distributor, which would definitely affect the overall sales of the exported goods to India.
Execution system is very efficient and it uses less the steps in the supply chain and also mitigates the problem of warehousing as a responsibility of the distributor.
Distribution systems involve high amount as collaboration with different distributors as well as register Corporation directly increases the overall cost involved in the business.
Some disadvantages of hiring an agent in India are as follows
Indian agents are prone to be finding personal benefits in the businesses.
Fluctuating prices as well as unethical practices done by the agents is one of the most criticised terms indian market place.
Agent based marketing is totally based on the skills of an agent in the specific region, if an agent is not properly killed then the overall structure of the Marketplace would be disasters for an exporting company.
Agent based marketing does not have any kind of warehousing available which creates an extensive burden on the overall cost involved in the specific business.
Some disadvantage hiring a distributor in India are as follows.
Distributed system in India is very well known for generating higher revenues but providing less to the supplier.
Distributed based networking system required to have large number of Logistic operations as the material has to be shipped at different locations where the dealers or the distributors are located.
Overall profit margins are comparatively less as distributors directly buy from the company and expect the prices to be elected when the agent is networking system.