International Market Entry: Advantages, Disadvantages, and Methods

This report provides a comprehensive analysis of international marketing, focusing on the advantages and disadvantages of import and export, as well as various market entry methods. It delves into the differences between services and merchandise in international trade, emphasizing essential documentation such as letters of credit, packing lists, and commercial invoices. The report also examines direct and indirect exporting strategies, highlighting the role of licensing. Furthermore, it explores how small and medium-sized enterprises (SMEs) can tap into international markets, using Barclays as a case study to illustrate methods like joint ventures and franchising. The analysis includes a comparison of the pros and cons of each strategy, providing insights into the complexities of global market expansion. The report aims to provide a clear understanding of the international market and its impact on business.

Tapping into New and International marketing
Trading overseas refers to a procedure that relates with importing and exporting of
services as well as goods in global business environment. Within context of this
brochure organisation is able to build better understanding with those ways that is
used to export business. Moreover, brochure also provides positive and negative
methods for exporting and importing business along with their comparison within
merchandise. Along with this method to enter into international market is also
covered in this report.
Importing work as the procedure that is used to import products as well as
services from other economic of countries. This refers to enhance local economy
of country by maintaining balance trade and bringing new as well as exciting
products. Some advantages related with the procedures is mention as follow:
 Products are procured at the low cost and then sale products at high prices
to attain high profits by developing high margin in products.
 Small business procures raw-materials, labour, machines etc. at lower
cost for initiating products that will reduces cost for manufacturing.
 Several countries provide facility of tax concession that is used by small
business to procure high quality of goods with lower rate and taxation.
 UK is a well-developed country that provides supports to small
companies for establishing business by performing importing and
exporting activities in proper manner that enhance business operations at
global level.
Some demerits that are related with procedure of import also mention as
underneath:
 Organisation tend to import goods as well as services with other nation
due to which problems related with unemployment is increases. Like
local country labour will be demotivated because production will be
completed by engaging labour of other countries.
 Business face several challenges that are related with tax such as GST is
impacting on the profits margin due to business operations are impacted
effectively.
Trading overseas Advantage and Disadvantages relates with import of business

Tapping into New and International marketing
Advantage and Disadvantages relates with export of business Direct and indirect supporting of business
The term exporting work as a procedure by which organisation and nation sale
their products to foreign countries for earning better revenue. This also helps
countries to generate and maintain economy at stable rates. Benefits of this
concepts are mention as follow:
 With increasing the market share by exporting goods it is easy for
organisation to gain huge market share which also increases profits of
organisation.
 Business also perform their work by increasing their sales in order to
increase profits through exporting their products into high value currency.
 Organisation is also able to increase their local market share by fulfilling
seasonal demands of consumers.
Apart by the above benefits it is analysed that there are several restrictions related
with export of business is mention as follow:
 Most of the business are facing financial danger because price is impacted
if economy of exporting country is impacted.
 Licensing documentation refers to those process that is exporting and
restricts business to enter into international market.
Concepts related with export are broadly divided into two different categories that
are direct and indirect supporting of business. It helps for procedure to export
specific services by developing the framework in effective manner such as
sequential approach. Direct exporting allows to sale products directly to end
consumers. So it saves cost from intermediator that directly increases profits for
organisation. Moreover, indirect exporting refers to sale products and services to
intermediator of a selected country. This method is used to sale products with low
risk but it also increases part for sharing profits that reduces direct profits for
organisation.
The above mention deals that are related with importing and exporting is secured
by organisation through accomplish right license from government. Therefore,
with all essential documents such as letter of credit, packing list, terms of
payment etc. management is able to formulate license for business.

Tapping into New and International marketing
Difference between service and merchandise for import and export Essential documents that is required for merchandise
Import and export are major and most essential activities for organisation that
are focused for entering and managing operations into international market. Further,
this is also necessary for differentiating trades to get effective insight towards scope
and nature of import and export.
In the context of selected organisation, major differences between services
and merchandise of import-export is mention as follow:
BASIS Merchandise imports and
exports Service imports and exports
Meanin
g
It refers to export and import
of tangible goods. This is also
necessary to sale products
with in different countries. For
example, Barclays offer
products to a client which
exist outside the UK. This
helps to perform work with
help of technology such as
internet.
In the context of merchandise, services
are related with intangible exchange.
In this relation, best example for
Barclays is used to pay services by
importing business for providing
professional services to provide
services in another country.
Scope
The rather narrow scope
shared by import and export as
it is not appropriate and
tangible products that is used
to deal with products in
effective manner.
As comparison with import and export
organisation is wider in scope. As
there are various services like
infrastructural development,
professional training etc. is used to
trade with all activities for better
Thus, with the above analysis it is analysed that there is a vast difference
between merchandise and services, due to which there is difference between
import-export which resist business performance so essential documents that is
required for merchandise is mention as follow:
 Letter of credit- Letter of credit refers to document which is utilised by
organisation to trade and develop payment as per international trading.
This is also necessary for business as it provides guarantee from specific
banks due to which financial operations are performed in other countries
also.
 Packing list- This refers to those products and the packing details that
are essential to provide for transporting products into other countries.
This also helps for regular supply and establish authentication about
quantity of each product.
 Commercial invoice- This invoice refers that business are performed
with formulate of some specific documents that leads business to
perform their work at international level. The main concern about
declaration of products relates with exporting services and products
outside the country.

Tapping into New and International marketing
Methods by which SME can tap into international market
The Barclay can enter in international market to gain the competitive advantage by
adapting some methods these as described as below as:
 Franchising: This technique is used by Barclay at the time of expansion
and this is based on the marketing strategy. This is a kind of agreement of
Barclay that is performed between the two parties where one is the
franchiser and other is franchisee. As franchiser allows the franchisee to use
their brand name and logo to sell their goods and services. It is the method
that will quality of the brand and maintains the brand image. There are some
pros and cons of this method that are describes as below as:
Pros Cons
There is a probability that Barclay gets
the success and it leads the effectiveness
of the business with less risk of failure.
There is a probability that franchiser
can’t manage the brand value and image
and that is the biggest threat of Barclay .
 Joint venture: This is a method that is used by Barclays for expansion as
it includes the sharing of business that works together to achieve their
goals and then measures the profit. It is a partnership between the two
parties that is for a particular period of time to achieve the targeted goals
and that expands the business of Barclays.
Pros Cons
Barclays shares the profit as the risk
and cost both is shared by both the
parties. There is a generation of best
and creative ideas by both the parties
that effects the performance of the
Barclays.
Sometimes, Barclays shares the loss
and many o of thoughts that raises the
conflicts and that shows the negative
impact on performance of Barclays.
 Joint venture: This is a method that is used by Barclays for expansion as
it includes the sharing of business that works together to achieve their
goals and then measures the profit. It is a partnership between the two
parties that is for a particular period of time to achieve the targeted goals
and that expands the business of Barclays.
Pros Cons
Barclays shares the profit as the risk
and cost both is shared by both the
parties. There is a generation of best
and creative ideas by both the parties
Sometimes, Barclays shares the loss
and many of thoughts that raises the
conflicts and that shows the negative
impact on performance of Barclays.