Question

As an international, small and new venture in manufacturing, how would you consider accessing global markets?

Answer 1

As an international, small and new venture in manufacturing, it shall be essential to access the physical distance of the new market from the home market. More the distance, more complications it would be in terms of logistics & supply networking, monitoring challenges, higher expenses, etc. A small and new venture in manufacturing could hence consider entering into nearby foreign markets. It shall also be essential to understand the cultural differences. If the cultural differences are varied in nature, then it shall be preferable to employ the local people of that country into our manufacturing business so that cultural conflicts do not result into winding up our business from the host country. Moreover, as a small venture, we may not even afford high investments in training our personnel in adapting to the foreign cultures. Hence accessing the scope of employment of locals of the host country is must. Tie-ups with locals may also prove to be beneficial if we do not master in marketing in global markets. In this regard, we need to assess the cost of such alliances in host countries. In addition, the tariffs in those countries, the import fees, etc. beside the cost of hiring human resources in those countries may also be considered.