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Indirect and Direct ExportH (Direct Export (Advantages (Potentially higher…
Indirect and Direct ExportH
Direct Export
Advantages
Potentially higher profits
More control over the export process
Closer relationships to the overseas buyer and market place
Opportunity to learn what you can do to boost overall competitiveness
Yuo have better protection
Disadvantages
More risky
Market progress will be slower
Having more struggles compared to indirect export
Need more people/resources to research markets
how direct export should be proceed?
Indirect Export
Advantages
It frees up time
Low investment requirements
By default more profitable
Less risks
Disadvantages
More costs over time
Doesn't build company image as much
Dependent on the subcontractor
Not that much control overseas
Not familiar with customers so can't tailor products to their needs
Your product is in someone else's hands
Less control over price and marketing
Definition of Direct Export
Definition of Indirect Export
Outsourcing the task of exporting
Using subcontracting for sales and storaging
Conclusion: Which one to choose and why
If you don't want to risk anything, choose indirect export
If you want to maximize profits, use direct export
Examples of companies who use Indirect Export
Dell EMC
Companies that are just starting in export business
Introduction: What is export?
Investment and commitment
Exchange rate
Building customer relationship and distribution channel