This option would reduce our own sales and logistic requirements. Working with locals means that the firm would benefit from establish local contacts and market knowledge, there is also the presence of consumer loyalty. That being said, it is vital to give attention to the risks associated with local distributors, for example the undesirable local publicity that could come to light when contacts need to be ,”let go” or terminated, which creates resistance to change. Also in this scenario suppliers have the potential to depend upon the buyer leading to complacency. In turn showing that local suppliers have the possibility of being less efficient with restricted economies the firm might try and sell to. The only way to reduce the risks that come along with working along side a local distributor is associating the firm with a distributor who we are confident in who also obtains enough knowledge in said target market, we then decided if the local contact in position is competent enough to do the job.When entering a market, a small business should enter the export market in a reactive manner so they are able to face the competition that is also in the same market. Planning out the entrance into the market is extremely important for starting, because the firm is small, it should have a well sought out recruitment team to find people to carry out the plan of entrance. The firm should also have the capacity to meet new market demands so it does not fall behind or fall short. The firm will have a series of check list tasks it will need to complete like the firm should have multiple contacts, find opportunities through trade fairs, start smart marketing, and explore the target country. It should be easier for the firm to continue with expansion and growth is all of those tasks are done successfully.
One of the most important factors in all of this is government assistance. If it were not for government assistance it would not be possible to know that exporting is necessary for the development of the countries’ economy. In retrospect about 96% of exports are small scale exports, which the government encourages the export launch programs and offers made. Just in the United States alone the government launched an export express loan program to provide loan approval processes in less than two days, that is extremely fast in comparison of how it was in the 1970’s. The government is also in charge of the international trade loan program for construction, development, maintenance, and many other operations are all launched by the government, giving it all the more reason on why government assistance is so vital to a firms survival.