4.Choosing an Appropriate Entry Mode
Recommended Entry Mode:
Direct exporting is one entry mode that offers PetFlex, a Bangladeshi recycling firm of
plastic waste, tremendous advantages in international markets. Direct exporting of
recycled PET flakes allows PetFlex to enhance control of operations, save costs, and
promote brand creation.
a.Control Over Operations:
Direct exporting allows PetFlex to exercise control over its overseas operations
independently without the involvement of intermediary firms, thus ensuring:
Quality Assurance: Satisfactory quality in recycled PET flakes to meet international
standards.
Customer Relationships: Developing direct relationships with foreign buyers promotes
confidence and feedback.
Pricing Strategy: Pricing competitively without intermediary markups enhances market
competitiveness.
This approach is also consistent with overall advantages of direct exporting, such as
better customer requirement intelligence and total control over foreign market
operations .artofmarketing.org
b. Cost-Effectiveness:
By eliminating intermediaries, PetFlex can:
Increase Profit Margins: Retain the whole value of export sales.
Reduce Operation Costs: Remove fees and commission by third-party intermediaries.
The reduction of costs in this regard is particularly significant in the recycling sector, as
margin for profits is low. An example is the plastic recycling industry of Bangladesh,
which has emerged as a significant sector in the plastics industry, recycling nearly 140
tonnes of plastic scraps daily.
c. Brand Building :
Direct exporting benefits PetFlex:
Make a Global Presence: Position itself as a reliable supplier of recycled PET flakes in
international markets.
Highlight Sustainability: Highlight its eco-conservation efforts, which will appeal to
green-conscious buyers.
The market for recycled plastic products is on the rise globally with Turkey, Poland,
Spain, Russia, America, and Vietnam importing PET flakes from Bangladesh. Direct
targeting of these markets will help PetFlex boost its brand name and customer loyalty.
References
1.Exporting: Advantages and Disadvantages | International Marketinghttps://www.artofmarketing.org
2.Plastic waste is being converted into resources and providing livelihood to half a
million people in Bangladesh – https://thegreenpagebd.com
3.Enhancing export competitiveness of plastic industry https://thefinancialexpress.com.bd/
4.Reduce Operation Costs: Remove fees and commission by third-party intermediaries.
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