Tapping into New and International Markets

This article discusses the advantages and disadvantages of importing and exporting, the difference between merchandise and services imports and exports, and different methods for SMEs to tap into international markets. It also provides a comparison of various ways SMEs can enter the international market and their pros and cons.

P6 Difference between merchandise and services imports and exports
There is a difference between merchandise and services which are imported and exported in
context to Barclays is defined as:
Basis Merchandise Services
Meaning Export: To sell out the
goods and products which
are tangible in other country.
Import: To purchase
tangible goods from other
country in to domestic.
Export: Selling of
intangible service or non-
product to generate profits.
Import: To get services
from international country
which are intangible.
Focus In this company focus on
cost related products, goods
and sell them in order to earn
higher profits. This helps to
increase the market share
and productivity of
organization.
In this company sell their
services from home country
to other. Such as Barclays is
providing financial,
investment and management
services in international
country which helps to
maintain brand image.
INTRODUCTION: Global marketing is considering as marketing where number of business
organisation are taking advantages to operate their business successfully. This is great opportunity
for businesses to establish their business at global level and increasing productivity as well as
profitability.
P5 Advantages and disadvantages of importing and exporting
Basis Importing Exporting
Meaning This means to purchase of foreign
products from home country to
another.
This means selling of goods and
services from domestic country to a
foreign country.
Advantages This is the simple route which helps
to enter in to global market by
generating huge employment
opportunities.
This have cheaper products from
foreign market, low labour cost and
low taxes.
This helps to increase the sale of
business organisation as it operates
business internationally.
Economy of country can be
maintained effectively.
Increase employment opportunities.
Disadvantages This increases inflation rate when
activities are run at international
level.
Loss of foreign exchange.
This creates cost of domestic
products.
Difficult to obtaining licence and
products.
This can reduce the brand image
due to selling bad quality of service
and remark on country.
Low value of export that generates
less foreign exchange.
It requires extra packaging,
protection, transportation and
insurance cost.
Tapping into New and International Markets

Direct export: In this method, sellers can export products and services directly by handling their
exports. Barclays, can use this method by conducting direct exporting in several ways such as
setting up a domestic export department that helps to carries out export activities, promoting
services at domestic and international level.
Pros Cons
 Lack of marketing cost and low
entry cost which helps to run
business internationally.
 Physical presence on market of
foreign country.
 Direct contact with customers who
are living in foreign country.
 It states inability to gain
international experience.
 High transportation cost while
selling the products.
 Dependency on the export partners.
Licensing: This consider as effective way which can be used by domestic company to go
internationally. Barclays can take license for its financial services which helps to protect from
others and helps to go internationally.
Pros Cons
 To get license there is low financial
risk which helps to run business
globally.
 High presence on foreign market
which maintaining commercial
brand an market image.
 It does not require a large
commitment of staff.
 Lack of maintenance of the quality
on foreign markets.
 Relatively low income as compared
to other organisation firms.
 Threat of disloyalty of licenses.
Franchising: This method is relatively similar with licensing where organization can
take franchise to establish their business at global level which helps to run a business
internationally.
Pros Cons
 In franchise there is low cost
occurred while entering in to
international market.
 High possibility of simple
expansion of both large and distant
markets.
 There is require appropriate
qualification of franchising.
 There may be chances of potential
conflicts between partners.
 Lack of trust of people.
Recommendation
From the above Barclays organization is adopting Direct exporting which helps to go
internationally from domestic level. From this it can establish business globally via online, apps
and other equipment that helps to establish business successfully.
P7 Different methods in which SME can tap in to international market
In business environment there are different methods in which SME can tap in to international
market. Such as Barclays is financial service provider which has started its business from small
enterprises and by using various method it taped in to international market which are defined as:
Assessing market: To enter in to international market there is need to assess the market
which states what's going on in market and how it can enter. For instance, Barclays management
has assessed market before entering in to Asia, America, south east, UK and other country for
expanding business.
Financial support: To tapping in to international market financial support is needed which
helps to establish and sustain effectively. Such as Barclays had taken financial support from
government which helped to tap internationally.
Distribution and transportation channels: This is also required when manufacturing
organization is tapping in to international market. Barclays uses online as well as offline mode to
provide the services to people which helped to become internationally.
Legal consideration: To enter and tap in to international market legal consideration is
needed which helps to run a business at international level. Barclays if following legal
consideration method which helps to become it internationally.
International regulations: To enter in to new market there is need to follow the rules
where they want to establish their business which helps to maintain the profits by running at
internationally.
Therefore, by using such methods Barclays taped in to international market which helps
to gain higher profits and market image efficiently.
P8 Compare and contrast the various ways SME in international market and its pros and cons
There are different ways which are used to enter in to international market by running their
business successfully. Such as Barclays is a financial services provider organization which has
enter in to international market by using such ways:
Indirect export: In this method company starts with indirect exports by working independently in
to international market through intermediaries. Barclays can use this method as its is less risky and
productive which helps to enter in to international market.
Pros Cons
 Low staffing requirement, financial
risk and entry cost which can help to
establish business successfully.
 Least complicated method of
internationalisation and simple
extension of sales market.
 Low profitability of the transaction.
 Lack of knowledge about foreign
market.
 Domestic intermediary can find a
better product and service provider
which can reduce the productivity
and profitability.