Global Logistic Discussion 2022

Running head:GLOBAL LOGISTIC
GLOBAL LOGISTIC
Name of student
Name of university
Author’s note:

1GLOBAL LOGISTIC
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Environmental analysis..............................................................................................2
Cost factors.................................................................................................................3
Transportation............................................................................................................3
Inventory management...............................................................................................4
Retail..........................................................................................................................4
Service factors............................................................................................................5
Distribution strategy.......................................................................................................5
Importance of distribution strategy............................................................................5
Channel structure strategy..........................................................................................6
Intermediaries.............................................................................................................7
Conclusion......................................................................................................................8
References......................................................................................................................9

2GLOBAL LOGISTIC
Introduction
The importance of logistics is increasing at significant pace and majority all over the
world are shifting towards the use of proper logistics for transporting goods all over the
world. This report intends to provide to provide a distribution strategy for Incheon Electric
for allowing the company to perform business all around Europe. The cost factors of the
distribution strategy has been discussed in this report. The service factors has been briefly
stated in this report for providing the idea about the business conditions of the organisation in
Europe.Lastly this report provides the appropriate recommendation for the company and then
appropriate conclusion has been provided.
The considered company Incheon Electric is the South Korean manufacturer of the
power tools and it had been established almost three years ago when the spun-off from one of
the major conglomerate corporations of South Korea. The products of the company are
considered of significantly high quality and it has been priced competitively. The company is
immensely successful in majority of the Asian markets and it now intends to enter the market
of Europe for conducting business. A leading European marketing consultancy hired by the
company has provided the conclusion from analysis of the organisation that indicated that
there would be significant demand for the product of Incheon Electric by the final users in the
European market and it has been discovered that there is considerable interest from the
resellers.
Discussion
Environmental analysis
As the present global economy ultimately seems to be regaining significant
momentum, several companies are presently considering the broadening the horizons by
selling the products to foreign markets. The European Union is presently considered as the

3GLOBAL LOGISTIC
most attractive market for several shippers in the beginning of the new venture of
marketing.In the present times, there is not major company who dominate the electrical
industry in European region. Several manufacturers manufacture the goods from within the
countries and are discovered to be not popular. A bulk of the manufacturers trade the
electrical products using several brand titles that might or might not be sold on nationwide.
Solely largest manufacturers offer the goods for the National brands or even execute the
distribution of the product across the national channel in the countries. In addition to
domestic business, it has been observed that there is a significant rising world-wide request
for the electrical products of the company. The import market is significantly robust and it
carry on to grow specifically for the improved electrical products. The common element in
the electric importing in the present times is the requirement of significantly high quality
electrical products that provides sustainable electrical solutions for the common people. The
industry of electrical components are presently continuing to rise. The major impact of the
trade wars between US and China could be observed in several fronts, that includes the
commodities, currencies as well as the companies. There is significant pain inflicted on the
stocks that would be viewed as two-fold, and it significantly hurts the US companies that
sources the goods as well as the material from China. Due to the recent occurrence of Brexit,
the incomes in several countries have reduced significantly and it has led to the downfall of
several markets where the businesses were flourishing. The banks of several countries have
faced significant issues due to the lack of revenue in the countries.
Cost factors
Transportation
Appropriate transportation and logistics planning would help the organisation with
managing the cost of transportation of the goods. The cost of transportation is among the
factors that is required to be analysed and it could be observed that the cost of transportation