Feasibility Of Financial, Distribution, And Marketing Partnerships For The Company Within The Chosen Country

Decent Essays
3. Ascertain the possibility and feasibility of financial, distribution, and marketing partnerships for the company within the chosen country. Fill in a) Market structure and analysis (e.g., channels- direct or indirect) Direct exporting allows the U.S. producer to deal directly with the foreign buyer. Pier 1 Imports will sell products directly to the end-user and take all responsibility for all operations within the firm in Italy. The company will use sales representatives from Italy, along with management (Chapter 5: Methods and channels, n.d.). b) Currency considerations Keegan and Green (2009) “wrote that currency exchange rates are extremely unpredictable that several enterprises pursue international sourcing strategies as a way of reducing exchange-related risk” (p.285). Currency rates can have an impact on revenues for a U.S. company expanding operations in foreign countries, depending on exchange rates. For example, the U.S. dollar is only worth seventy-four cents in Italy. c) E-Commerce E-commerce is the method of using the Internet to exchange goods and services (Keegan & Green, 2009, p.576). Pier 1 Imports has an established e-commerce business-to-consumer website which sells a broad variety of furniture, candles, home decor, dining and kitchen goods, and specialty products. Pier 1 Import’s e-Commerce sales accounted for 4.0% of overall sales for fiscal 2014 related to nearly 1.0% for fiscal 2013, as stated in the Annual meeting of
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