Discuss the different channels of distribution that Irish businesses may consider when introducing their products to international markets. - Leaving Cert Business - Question 3(B) - 2017
Question 3(B)
Discuss the different channels of distribution that Irish businesses may consider when introducing their products to international markets.
Worked Solution & Example Answer:Discuss the different channels of distribution that Irish businesses may consider when introducing their products to international markets. - Leaving Cert Business - Question 3(B) - 2017
Step 1
Direct Export
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Irish businesses can sell directly from the factory to customers around the world. This method reduces costs associated with intermediaries and allows the business to achieve economies of scale. By increasing sales volume, firms can boost their productivity and profits. Utilizing e-commerce platforms, internet marketing, and dedicated websites enhances the reach to international customers.
Step 2
Expansion of own facility in foreign market (Organic Growth)
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Setting up a manufacturing facility in another country can significantly further an Irish business's global presence. This allows for the local production of goods, hence reducing transportation costs and import duties, while also catering directly to local market needs and preferences.
Step 3
Licences/franchising
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Businesses may license their products to local producers, enabling them to manufacture products under the Irish brand. Franchising allows local entrepreneurs to use established business models, which can lead to quicker market penetration and reduced risks.
Step 4
Agency
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
An agency agreement involves hiring an independent person or firm to sell products in the target market. This method enables businesses to leverage local market knowledge while minimizing risks and capital investment.
Step 5
Trading House
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
A trading house can act as an intermediary buying goods in one country and selling them in another. This arrangement provides Irish companies with access to varied markets without establishing a direct presence.
Step 6
Joint Venture
97%
121 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Entering a joint venture with a local firm allows Irish businesses to produce goods for the local market. This approach not only shares capital risks but also ensures that the international business benefits from local expertise and distribution networks.
Join the Leaving Cert students using SimpleStudy...
