Free Directory, Your SEO Help Link Directory

Why should the producer consider using on an independent agent to sell his/her products?

Date Added: December 13, 2014 04:17:50 PM

• Due to the seasonal nature of your products you have to be efficient in a minimum amount of time.

• You need the guarantee of immediate benefits without neither wasting too much time, nor invest in the creation of local structures.

• You need to fulfil your sales ambitions as quickly as possible.

The fixed costs of using external agents are lower than those of using a company salesforce because there is usually less administrative overhead and agents do not receive a salary or reimbursement for selling expenses. Thus, agents are typically more cost efficient at lower levels of sales but less so as volumes increase. This helps explain why agents tend to be used by smaller firms or by larger firms in their smaller territories where sales are too low to justify a company salesforce.

Is Competition Changing?

There is a body of opinion which holds that competition has become much more severe than in the period up to about 1990. It is claimed that the ‘rules of the game’ have changed and that now there is no such thing as sustainable competitive advantage and companies have to be in a state of continual change just to remain in the market. The reasons for this radical shift, it is claimed, include:

the increased pace of technological change; improvements in communications; the internet; globalisation.

So fundamental are these changes that a couple of new terms have been coined – ‘hypercompetition’ and ‘dynamic competition’ – to characterise the new competitive regime. As a result companies have to think afresh about the basis of competitive advantage.

The potential for competitive advantage does not lie in effective performance of each activity because that can always be imitated. The type of changes that the value chain must be capable of to provide an effective response to a competitor who has launched a higher quality product

International Expansion

There is no difference in principle in moving into a foreign market compared with opening up new domestic markets. The same considerations of strategic opportunities and threats and competitive advantage must be taken into account. But it has to be recognised that competitive conditions may be significantly different in another country. The competitive advantage of a company relates to its strengths relative to the competition in the market where it currently operates. The fact that a company has a competitive advantage in one location does not mean that it can be readily transferred abroad. Competitive advantage can be country specific or company specific and this determines whether it is appropriate to export to a foreign market or shift production there. But even if competitive advantage is company specific it does not follow that it can be transferred abroad.

A strong brand can generate a degree of monopoly power because it is a form of entry barrier. If any of these general characteristics are undermined then the expected cash flow attributable to all brands are likely to be adversely affected.

Obviously Deto Novo International has better experience and expertise in marketing since our core business is to sell which they can apply to the product. Feedback can be invaluable as we may be more in touch with customer needs since the manufacturer’s competence is in manufacturing and not selling.

Our core expertise includes:

  • Supplier / factory sourcing
  • Raw material sourcing
  • International Sales & Marketing
  • International Brokerage
  • Preparing International Trade Agreements
  • Communication services
  • Price Negotiation with suppliers/ freight forwarders

Whether you need a buyer, a reliable source, or help identifying and developing new markets, Deto Novo International has the track record, service and tools you need. As an international agency and marketing company, we help you buy or sell commodities globally. We establish our competitiveness in the research of the specific product that the company needs, according to the technical specification and cost, with the necessary financial flexibility.

Our core expertise includes:

    Food Additives & Ingredients
    bulk and packaged chemical products
    Chemical additives for food and beverages