Question

You must consider several issues when you are thinking of selling overseas, including the following:

Should your company modify its domestic-market product for sale abroad? Should it develop a new product for the foreign market? Please discuss.

Answer 1

A company may need to be modified the product to conform to the market for any several reasons such as buyer preferences, geographic and climatic conditions, government regulations, standards of living, or religious practices. The modified product may also facilitate shipment or compensate for possible differences in the design and engineering standards. The decision to modify product is based mainly on the degree of commitment to the specific global market costs incurred in adapting the product, a determination of the market potential, and assessment of the increased expected sales. A country's standard of living can also require the product adaption. The availability of energy, level of income and education, and are all factors that help predict the acceptance of a product in an international market. The less developed nation in comparison to the United States may be geared towards less sophisticated products, thus high-technology products may not be successful in few nations not only because of their cost, but also of their nature thus may require product modification.

The new product development process starts with a new idea generation, and this will require the systematic search for new-product ideas. This will be a more expensive approach, however all kinds of products found in the market can't survive for ever, thus new product appear. Thus the better possibility will be continuous development of existing products.