Selling the Revolutionary Surf Ski in International Markets Assignment

Selling the Revolutionary Surf Ski in International Markets - Assignment Example 7 References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Executive Summary ABC Surfer has recently developed a new surf ski that can outperform all the existing skis and can be produced at a much lower cost. The surf ski's unique design and shell material is protected by a number of patents. Surf skiing is an international adventure sport with surf skier all over the world. Hence, it is in ABC Surfer's interest to expand into international markets to reach as many potential customers as possible. Surf skiing is comparatively a new sport but is gaining in popularity all over the world. Besides Australasia, the US is one of the major countries that hosts surf skiing events and has the biggest population of surf skiers. As such the US is not only one of the biggest market for surf skiing products, but also the fastest growing one. The countr y also has low barriers to entry, similar culture as Australia and a stable political and economic environment. As ABC Surfer looks to expand in international markets, the US comes across as an obvious choice. ABC Surfer must also carefully analyze and plan its mode of entry into the US market. Although the company has several options available, the need to protect its patented design means that it must discard licensing and joint ventures as possible options. Opening a wholly owned subsidiary or going for an acquisition is also not an available option at this time due to cost considerations. Keeping these factors in mind, the direct export mode of entry is best suited for ABC Surfer's international plans. It is recommended that the company should open a branch in the US to take care of day to day issues and importing, promoting and sales of the surf ski. Selling the Revolutionary Surf Ski in International Markets 1. Introduction The ABC Surfers is a premium Australian manufacturing company involved in the production of surfing equipment. The company has recently developed a surf ski, a revolutionary product that outperforms all existing surf skis in the market. The surf ski is designed for professional surfers and with its high level of performance can help professional surfers outperform their competitors. As the benefits of the sew surf ski become widely known, its demand in the surfing community is likely to rise steadily. Since the surf ski has huge international potential, it is important to ensure that the surf ski is easily available to surfing enthusiasts all over the world. Given the international nature of surfing as a sport, expansion into international markets is necessary to ensure that surfers all over the world have access to our surf skis. However, all international expansions must be carefully planned because a poorly designed international strategy can misfire and lead to huge costs. This report shall look at the most suitable market for ABC Surfer's international ventures and suggest the most suitable entry strategy. Surfing is a popular sport in many countries across Europe and Asia, but no country embraces the sport like the US. Hence, the US should be the obvious choice for ABC Surfers to make their international foray. As far as entry strategy is concerned, direct export is the best strategy at this time given the sensitivity of the technology related to the new surf ski as well as the cost considerations. 2. The American Market According to Westhead et al (2001), a number of factors must be qualitatively and quantitatively analyzed before deciding which market to