Welcome
The Abstract
Thesis Introduction
The Aim
Background to the Research Topics
The Research Topics
The Targeted Audience
Disposition
Research Approach
The Thesis in Context
Export Guide Construction
Questionnaire Construction
Information Gathering
The Export Guide
Introduction to the Export Guide
Export Guide Overview
Export Readiness
Trade Condition
Foreign Market Analysis
Questionnaire
Research Results
Export Readiness
Trade Condition
Foreign Market Analysis
Discussion
Export Readiness
Trade Condition
Foreign Market Analysis
Foreign Market Analysis
Conclusion
Export Readiness
Trade Condition
Foreign Market Analysis
The Next Step
Supplements
Introduction to Sunfoods and Konnyaku-Chips
Site Map
The Complete Interview
Glossary
Sources
Foreign Market Analysis 2
Market Entry, Distribution and Trade Assistance
Marketing-channel decisions can be considered to be among the most critical decisions facing international companies.(Kotler et al, 1999, page 556) Conventional means of market entry are often grouped into the categories direct exports and indirect exports.(A step-by-step guide to exporting 2003-02-18, page 30) It is maintained that direct exporting may give higher returns on investments, allow for lower prices and involve closer contacts between the company and its customers.(A step-by-step guide to exporting 2003-02-18, page 31) Further, if Sunfoods chooses to import directly to Sweden the company may find information and support through the central organization for Sweden's importers, the 'Swedish Federation of Trade' ('Svensk Handel'). This may lead one to believe that direct exports is better than indirect exports and that Sunfoods should enter the Swedish market directly. However, it is believed that the chosen market entry strategy need to reflect the host market, the company capabilities, and the degree of commitment the management is prepared to make.(Cateora and Graham 1999, page 325) For easily accessed markets, direct selling is seen as achievable but, for markets with complex business structures and cultural differences, it is considered better to corporate with a local partner.(www.austrade.org/generic_template/0,1053,MetaRID%3DPWB1146570,00.html)Sunfoods maintain that the company has no previous experience of direct exports as they have used a trading company as an intermediate when exporting previously, in order not to expose the organization to high risk.(Shiraishi, Hajime 2003-04-11) Moreover, Sunfoods explain that the company has no personnel with language and culture knowledge.(Shiraishi, Hajime 2003-04-11) In addition, the Swedish business culture is claimed to differ substantially from the international norm and the Swedish business is also culture said to differ from the Japanese business culture in some aspects.(www.sverigeturism.se/smorgasbord/smorgasbord/industry/business/culture.html 2003-04-03) Intermediaries are said to smooth the flow of goods from the producer to the target market, they might possess useful information and they may provide some of the necessary financing.(Kotler et al, 1999, page 557-559) Further, companies usually start with indirect exporting where they export through independent intermediaries, since this involves less investments and less risk compared to direct exporting. (Kotler et al 1999, page 418-419) Indirect exports may thus be perceived as the most suitable market entry method for Sunfoods as the company has limited export experience, whishes to avoid risk and is about to enter a country with an unfamiliar business culture.
To find a agreeable distribution channel it may be advisable to look for assistance from other members of the health food industry in Sweden. The process of exporting may not appear to be easy to handle but it may be possible to find support and assistance.(A step-by-step guide to exporting 2003-02-18, page 8) Some sources of assistance may include trade associations, chambers of commerce, embassies, business magazines etc.(www.unzco.com/basicguide/c9.html, 2003-02-21) To find a suitable partner, intermediate or an appropriate distribution channel the 'Health Food Council' and its subdivisions may prove useful.(www.halsokostradet.se/Mallar/standardmall.aspx?SidID=10125 2003-03-24) The 'Health Food Council' may provide Sunfoods with lists of suitable health food shops which Konnyaku-Chips can be distributed through. Further, the subdivision of the 'Health Food Council' named the 'Health Food Delivery Organization'(Halsobranschens Leverantorsforening) may provide useful associates within the health food delivery industry as the organization consists of producers and importers of health food.(www.halsokostradet.se/Mallar/standardmall.aspx?SidID=10125 2003-03-24)