International Logistics, Inc Export Proposal. Management Essay

International Logistics Inc. Export Proposal
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International Logistics Inc. Export Proposal
The evolving nature of markets and competition from both local and international markets creates a need for companies to consider international markets. While the decision to start exporting to new markets seems the best alternative to curb competition and attract revenue to the firm, there exist challenges that Logistics International Inc. will face. After considering the history of this company, I would choose Japan as the target country for exporting tech equipment. The choice of Japan is based on factors that are discussed below alongside the disadvantages that might undermine the success of doing business in Japan. It is expected that this export proposal will help the Logistics International Inc. management make an informed decision that will propel the company to an international level success.
Exporting to Japan
In today’s competitive markets, export of goods is directly tied to the export of services. A firm exporting to international markets has to understand the underlying advantages and disadvantages of exporting to that market. For this case, International Logistics Inc. will need to take into consideration several factors that will determine its success in the Japanese foreign market.
Advantages of Exporting to Japan
Japan has a wide range of advantages that the company will enjoy. In the past five years, the economic center f gravity has been shifting from the west towards Asia. Japan and China have been experiencing a rapid economic boom, creating a range of opportunities for investors. According to Mazul (2017), Japan has open and transparent legal systems that any foreign investor can easily navigate and establish a successful business. The Japanese have a plethora of sophisticated clients who are always wishing to taste the latest technology in the market. While it is true that there are established tech companies in Japan, the desire to taste foreign products is one of the things that propel Japanese consumers to buy foreign tech products. Another advantage is in the established tech companies in the country who can easily serve as export partners, easing the entry processes in the country. Investors in Japan also enjoy a reduced cost of doing business due to the concentration of businesses in Tokyo, the main city. Investing in the main city will be quite expensive, hence a recommendation for partnering with businesses located in the suburbs. The Japanese also have strong work ethics that is supported by strong adherence to IP laws and other regulations on respect to personal property. The strong work ethic coupled with a culture of hard work will see the company recruit the best employees from the market. Additionally, exporting to Japan will be the best gateway Chinese market, considering that the economic ties between Japan and China are increasing. After penetrating the Japanese market, it will be relatively easier to penetrate the Chinese market.
Infrastructural development is another factor that makes Japan the best option for International Logistics Inc. Japan has more than twenty ports with more than five main airport entries. The established road network in the country in addition to developed systems of transport such as railways is a factor that will help the company make significant growth while exporting to this region. Japan also enjoys the latest telecommunication systems and networks that help in tracking the movement of goods as they are transported from warehouses to delivery stores or the client’s place. This will reduce the cost of doing the business and eventually attract revenue growth to the firm.
Disadvantages of Exporting to Japan
The primary limitation is in the language and cultural barriers that may limit the success of doing business in Japan. Both customers and clients may find it difficult navigating these barriers, especially at the beginning. According to Noraya (2018), Japanese is the main language, and other cultural factors will have to be considered in the use of verbal and non-verbal communications. The International Logistics Inc. will have to consider training its employees to fit into the new business environment and employ local translators. The issue of ethical standards will also have to be taken into consideration. In Japan, gifts are not randomly entertained, unless there is a specified reason indicated to the container or formal communication for the gift. Americans tend to express kindness or seeking favors through gifts, and this may taint the company’s reputation abroad. Employees will also have to maintain formality when dealing with clients and their local counterparts. Formal language should guide all interactions and due respect extended to seniors by their juniors.
Introverts may find it easy to survive the Japanese culture and reap benefits from the market, as extroverts are considered disrespectful. In case of differences, Japanese do not solve their differences through arguments. They embrace and solve their differences through a long period of listening to one another. This is different from the west and will have to be learned first. Concerning work, Japanese are not workaholics. They respect schedules and family functions. The official working time is from 8: am to 6:00 pm. In case the company considers employing a local workforce, it will have to adhere to the local and traditions of working to avoid collision with employees. The advantage of understanding these limitations is that it will help the company make enough preparations for tapping into unlimited opportunities that exist in this emerging economic power and other markets in Asia.
Supply Chain Assessment (SCM)
The first step to the success of the export of export business is to evaluate and assess the supply chain of the firm. The traditional method of competition between companies has faded. Today, companies are competing at the level supply chain level. Franco, Singh, and Sheffi (2013) define supply chain as the integration of all business activities from the manufacturer to the end user through the supplier. From the logistics point of view, supply chain management could integrate activities such as production, packaging, planning, freight services, and delivery of goods to the client. In this competitive market, a suitable supply chain management could serve the purpose of increasing the firm’s competitiveness and improving its performance. The assessment adapted for this company is aimed at evaluating the relationship between the company and other companies that will be involved in the movement of goods and services from the supplier to the client. The assessment focuses on the flow and management of information, goods, services, finances, from the source to the end user.
The primary goal for success in the export business is to integrate internal business ideas into the external business activities that impact directly or indirectly. According to Simon, Serio, Pires, and Martins (2015), SCM management should focus on customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development and commercialization, and the returns management. The assessment of the International Logistics Inc. seeks to determine...