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Flyboy, Inc
Flyboy, Inc which is successful manufacturer of aircraft
wants to expand its market to
Pumonia.(a small oil rich kingdom that was once an Italian colony). The government would be the principal purchaser, along with some royalty private families. It is not possible for Flyboy to enter the marker without a local representative. Flyboy is aware that "grease payments" and lavish gifts to customer is Pamonia is customary. Before Flyboy can make any decisions in expanding to Pamonia, several aspects need to be carefully analyzed and planned out, to avoid future troubles and make a smooth transaction.
Both the advantages and disadvantages of this transaction should be considered. Typically the advantages of effectively expanding abroad outweigh the disadvantages and therefore the advantages will only be boldly stated. More time will be spent in analyzing in more detail the minuses of this transaction and showing how these disadvantages can be overcome by Flyboy. The two major advantages of Flyboy moving into Pamonia include: The opportunity for Flyboy to expand its geographic scope of its marketing. And the local presence permits Flyboy to maintain the aircraft
sold abroad, which can lead to better customer service and translate in to customer loyalty and satisfaction. This by the same token crates an increase in revenue.
On the other side of the coin- the disadvantages or not so attractive side of the transaction are the following: By setting up and hiring agents (dependent or independent) the company has subject itself to local laws and regulations. There are many different international laws that help out a firm when entering a new foreign market, bu ...