Flyboy, Inc :: essays research papers

Flyboy, Inc Flyboy, Inc which is successful manufacturer of aircrafts wants to expand its market to Pumonia.(a small oil rich kingdom that was once an Italian colony). The government would be the principal purchaser, along with some royalty private families. It is not possible for Flyboy to enter the marker without a local representative. Flyboy is aware that â€Å"grease payments† and lavish gifts to customer is Pamonia is customary. Before Flyboy can make any decisions in expanding to Pamonia, several aspects need to be carefully analyzed and planned out, to avoid future troubles and make a smooth transaction. Both the advantages and disadvantages of this transaction should be considered. Typically the advantages of effectively expanding abroad outweigh the disadvantages and therefore the advantages will only be boldly stated. More time will be spent in analyzing in more detail the minuses of this transaction and showing how these disadvantages can be overcome by Flyboy. The two major advantages of Flyboy moving into Pamonia include: The opportunity for Flyboy to expand its geographic scope of its marketing. And the local presence permits Flyboy to maintain the aircrafts sold abroad, which can lead to better customer service and translate in to customer loyalty and satisfaction. This by the same token crates an increase in revenue. On the other side of the coin- the disadvantages or not so attractive side of the transaction are the following: By setting up and hiring agents (dependent or independent) the company has subject itself to local laws and regulations. There are many different international laws that help out a firm when entering a new foreign market, but there are just as many new host country regulations that Flyboy should consider before making any critical decisions. An example of one of the regulations that Flyboy should consider, especially if it will be in charge of marketing, is the regulations for advertising abroad. Adverting regulations are established so the host country can make sure that the new company complies with regulation such as publishing the truth in advertising, the language used in the ads, and so they can have some control over the specific content. Flyboy should have very well planned marketing strategies and local marketing considerations. Since many of the advertising regulations abroad are not even a stated law, but rather an industry code observed by the local marketing organizations; the best thing any new foreign company should do is seek legal advice from local practitioners and fashion local advertising appropriately.