The strategy that would be most productive for an athletic shoe company would be the exporting strategy. Although the other strategies can also be beneficial, they can cause the company to lose its identity or present ways for shoes to not be made at the standard presented by the company. Exporting is favorable because it offering manufacturers a way to limit its involvement in foreign markets by contracting with foreign wholesalers. The wholesalers provide a way for the company to enter the market without having to handle the whole distribution and marketing within the other markets. This method also provides manufacturers with the opportunity to establish its own distribution and sales organizations within the different target markets. Since the cost of shipping products from one country to another, if the company decides to establish its own distribution centers within the target markets they will also be able to cut back in tariffs and other shipping cost associated with operating its company. Establishing different manufacturing plants will also provide the company with the opportunity to customize shoes fit the needs and wants of the local area I which it distributes. Although exporting can be harmful if currency shifts occur, it is the method that provides a company the opportunity to enter the market while also keeping its …show more content…
Discuss (and explain why) which of the five strategies would be least productive for an athletic shoe company. The strategy that would be the least productive would be licensing. Licensing the rights to different companies makes it easier for the competition to get its hand on information. When companies decide to use a licensing strategy, they risk providing valuable technological information to foreign companies and this causes them to lose control over how those companies use the information provided. This strategic method can also harm a company financially because the company would not be able to generate income from