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

797 Words Sep 6th, 2014 4 Pages
3. Ascertain the possibility and feasibility of financial, distribution, and marketing partnerships for the company within the chosen country.
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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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