Question

"The Borderfree Option" case is your fourth case write-up option. You will answer the following questions listed at the end of the case

1) Explain what Borderfree does. Why would an SME find that appealing?

2) What mix of ownership, location, and internalization advantages would encourage a company to hire Borderfree?

3) Borderfree's clients expect it to be knowledgeable about the key markets in which the operate and to be able to advise on how too prioritize, budget, and compete. How does Borderfree make that happen?

4) Borderfree promises to help its partners drive international growth. What sorts of marketing and sales techniques help it do so?

5 ) Do you think most international trade might eventually take place through intermediaries like Borderfree.com? Does that influence your interest in importing and exporting?

Thank you in advance !

Answer 1

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1. Border free is an American company which provides the solution of cross border e-commerce. It gives a platform to many shops and websites in the US to trade their wares throughout the world. Basically, this is a company that provides assistance to retailers online aiding them to sell their goods, products internationally. Border free company is a trustworthy company that is trusted by millions of shoppers in various countries approx 220 countries and territories around the world. They are specialist in international and custom delivery. . For this, I accept SME search it alluring The benefits of border- free company are; all the stores of international that directly ship to the place of customers: track all the international orders and able to check out securely and safety store’s site with currency option and local store; avoid surprise charges and prepay duties and import taxes. The services of border-free are providing the best service when it comes to getting help in online and retail online shipping internationally. Another reason why SMEs prefer border- free company because the partnership of border- free company with many other of the world’s top retail brands so they can easily reach new international markets.

2. The model ownership location organization is a framework of ‘Big picture’ for arranging thoughts about the welfare of the production of multinationals. The condition of ownership states that the firm or an organization must carry some assets that give rise to enough values to make it valuable the additional cost of multinational productions. This asset may be a design, a patent, or copyright. A pharmaceutical company, for example, may take a patent on a cholesterol drug. This patent right gives the firm or an organization market power due to this other firm cannot produce the homogenous product which increases the profit of the firm. Some other types of assets include things like managerial talent, the reputation of a brand, or some other intangible assets owned by the firm. These assets are explicit and protected legally. Location; A multinational company operates in more than one country. To make it worth there must be some benefit from working or operating in that location. Location advantage is saving or securing in the cost of transportation and tariff. These types of merits are more important for products that are costly to ship abroad (export). It would be very costly, like McDonald’s to ship Macs to Canada for the selling purpose, so McDonald’s produces Macs in Canada itself to sell to the market of Canada. This type of arrangement is known as Foreign Direct Investment (FDI).

3. Clients of the border- free company anticipate (expect) company to have the knowledge about the key markets and take suggestion in terms of budget, prioritization, and competitive strategy. Company make that take place with the aid of e- marketers who retain the company updated about the trends globally, patterns of consumptions, and customer preferences all over the countries in which it works or operates its business.

4. Techniques of marketing and sales that allow border- free to aid its partners operate world growth. Customized marketing and strategy of sales involving the strategy of price, marketing message, local market payment options. Value- added marketing services with the aid of efficiency in the network provided by border -free directly to consumer marketing.

5. The fast development and growth of the use of these sites and the corresponding rise in trade among SMEs, it is very rational to hypothesize that in due course many trades between SMEs may take place in this context. International trade (export, import) increases dramatically with energetically tools such as these at a company’s discarding outcomes of learning; to recognize the problems and difficulties and pitfalls that challenge the traders in the world, AACSB: global economic dynamics.