Discussion on Placement (Channels, Distribution, & Supply Chain)
Discuss the placement strategy which you plan to recommend for your Export Market Strategy Report. Be sure to remind the class what product or service you are looking to export.
Product and country
Who are the end-users? Where do they buy the product? How does the product get from your US-based facility to the end-user? Who holds and is responsible for the product in each step of the supply chain.
What logistics or supply chain issues are there with exporting the product or service which you are examining?
What market entry method will you use for each segment in the target country?
Include agreement terms with other companies e.g., agents, distributors
Are there any EU approvals for your client and how they can get these approvals?
Do you package the insulin in zip closing bags in the US? Are a number of these bags put in a shipping box?
Does the US require an export license for insulin? Be sure to refer to Chap 6-8, 13 in your textbook Albaum, G. (2011). International marketing and export management (7th ed). Prentice-Hall
1
Running Head: EXPORT TARGET MARKET
EXPORT TARGET MARKET 2
Export Target Market
Javon Motley
The University of Southern Mississippi
ED 620 H001 Global Location/Trade
Dr. Chad R. Miller
Wednesday, September 16, 2020
Executive Summary
For the Humulin to develop the marketing strategy on export conditions, the United States-based company must impose the right and direct method. This involves the weighted measurement of the characteristics according to the population and GDP concern of different option countries. The approach is catered with the help of a decision matrix integrated with the scoring method. This involves the characteristics movement for the market scenario and relations made within the collaborative environment. For the development of Humulin, the best country is Mexico, followed by China and Germany. However, it is recommended that Asian countries can also be considered for market opportunity.
EXPORT TARGET MARKET REPORT
Prepared By:
Javon Motley, Senior Manager
Date
Purpose
This report aims to define the markets of export of Insulin from the United States in places worldwide. This represents the conditions managed to a long extent for foreign needs and situations being defined according to the market environment. The importance can be highlighted from the insulin usage being expressed worldwide through useful measurements and task force. It is essential to define the export strategy in this report, and possibly explore the conditions according to the focused environment. The purpose of the information is to determine Humulin’s export strategy and the Insulin of a different kind. This develops the conditions and environment according to the market environment and conditions.
Background
Humulin R is the company based in the United States, which provides the Insulin of all different categories according to the usage and developed situation. It is essential to define the movement with the help of technical requirements. The market of the United States has an export value of an estimated $2,611,432 million. Insulin production and export become a part of the developed strategy. This involves the company being engaged in integrating according to the environment and usage of Insulin. Around the world, the patients of diabetes are increasing, which defines the options according to the critical assessment (Wang & Ma, 2018). It is necessary to generate sources and structure according to the export requirements. Possible connections are made for the weighted system and based on how Humulin has been based on collective opportunity and growth. This can link overall growth and system being approached in the right manner.
Method of Investigation
For the usage and use of export strategy, valuable and useful data is necessary to consider. This defines the characteristics being limited to the Gazelle, IBIS World, and USITC trade data web. The use of data for export strategy is managed according to the evaluation made and define within the right boundaries. With data utilization, the matrix is involved in critically putting the criteria in a measured way and choosing the best options against these criteria. A possible market situation and the definition of export markets would be classified within the right conditions and environment defined for structural changes. With the data web’s help, the matrix system would be collectively used to determine investigation methods.
Scope
The report is based on the export value being generated from 170 countries that can buy from the Humulin through the practical usage of Insulin. Options to develop the critical nature of medicine defines the expenses according to the market situation and plots. For the market entry, the export strategy can be best utilized within the conditioned environment and relations built according to the process (Garca, Bulln, Bueno, & Vicente, 2020). For export marketing and licensing, importance can be given to Insulin’s export value and its different classes. For potential market situation, the analysis is made of great importance to generate a clear idea.
Country
Total US exports y. 2019 (in a million dollars)
Weight (25%)
GDP per capita (in thousands$)
Value (20%)
Insulin Consumption
(per injection)
Value (30%)
Population (in a million)
Weight (25%)
Total
China
14.6
3.7
18.2
3.6
32
9.6
1,394.0
348.5
365.4
Mexico
58.9
14.7
19.9
4.0
62.1
18.63
128.6
32.2
69.5
Canada
106.4
26.6
48.4
9.7
57.7
17.31
37.7
9.4
63.0
Germany
0.9
0.2
50.8
10.2
104.2
31.26
80.2
20.0
61.7
Japan
30.6
7.7
42.9
8.6
41.4
12.42
126
31.4
60.0
UK
22.2
5.6
44.8
9.0
67.7
20.31
65.8
16.4
51.3
Netherlands
5.8
1.5
53.9
10.8
69.8
20.94
17.3
4.3
37.5
The criteria chosen for the markets can be focused according to the environment. For the export strategy, it is important to develop a market scenario according to the prescribed situation, as the overall Insulin has been utilized according to the market conditions. The setting of criteria is based on the export strategy, according to the constructive environment. The situation’s management is based on the country and the export weightage (Alotaibi & Zhang, 2017). It is important to measure the consider overall situation; the countries must measure the environment and fall according to the category. This would provide a supportive system according to the scenario and relations being made (Sitabutr & Deebhijarn, 2017).
Criteria 1: The amount of total export to the respective country is considered because trade relations are essential to generate good effect and create a more suitable environment. This is important to integrate data according to the nature of business conditions and the environment. Overall, US exports define the overall fewer tariffs and better trade relations to export insulin.
Data Source: For the individual country’s export data, importance is defined according to Statista.
Weightage: For the export value and relations, 25% is the desired and considered weightage for the insulin export strategy and matrix.
Criteria 2: The company’s Gross Domestic Product is the first criterion because the countries consumption is defined through it. It is crucial to integrate relations accordingly and generate adequate resources. For the weightage being determined, it is essential to link overall findings with the collaborative environment. GDP would consider consumption according to the descriptive nature of consumption.
Data Source: The data has been collected from Statista and the economic indicators according to the nature of the data source and nature.
Weightage: The weightage of GDP is set to be around 20% because of the importance it has shown within the limited environment and considerable usage.
Criteria 3: Insulin consumption is part of the strategy to export because of how countries are shipped. This also considers the demand strategy being defined within the relations being built according to the conditions and opportunities. Consumption of Insulin is directed with the diabetic position within the overall characteristics.
Data Source: Insulin consumption has been collected from different sources like the Data web of Gazelle and Statista. Each country’s consumption rate is different accordingly.
Weightage: The most crucial aspect of the export strategy is insulin consumption, which is defined according to the 30% approach, and relations are built with a suitable environment.
Criteria 4: Every company, before going for export strategy, focus on developing the population data, and then utilize the overall environment. This is important to maintain the conditions and design with the population defines.
Data Source: The population data is readily available from Statista, and the relations are then accordingly built with a collaborative environment.
Weightage: The weightage given to the population perspective is set to be around 20% because of how limited it has a part in populations’ overall situation and conditional environment.
Decision Matrix
Criteria
Wt.
China
Mexico
Canada
Germany
Japan
UK
Netherlands
US exports in 2019
Qty
0.25
14.6
14.6
14.6
14.6
14.6
14.6
14.6
Rank
1
2
3
4
5
6
7
GDP Per capita
Change
0.2
27%
12%
27%
2%
40%
8%
14%
Rank
9
5
10
2
3
7
6
Insulin Consumption
Qty
0.3
32
32
32
32
32
32
32
Rank
9
2
10
4
7
3
1
Population
Liters
0.25
1,394.0
1,394.0
1,394.0
1,394.0
1,394.0
1,394.0
1,394.0
Rank
4
5
3
9
6
1
8
Weighted Score
15.5
13.5
23.1
20.1
17.1
18.4
22.7
According to the weighted score and average, the top 3 countries for exporting business are:
1. Mexico
2. China
3. Germany
These trends are observed with the market situation and followed by the relations developed according to the environment.
Conclusion
In conclusion, the United States would have to define its export strategy according to the relations developed within the weighted scores. The Humulin R would be able to build an insulin export strategy according to the decision matrix, and this could be reflected according to the natural environment and connections being made with a better figure.
References
Alotaibi, M. B., & Zhang, Y. (2017). The relationship between export market orientation and export performance: an empirical study. Applied Economics, 2253-2258.
Garca, I. C., Bulln, F. M., Bueno, M. J., & Vicente, J. A. (2020). Exploring the exporting-downsizing link: Does the type of export strategy and firm efficiency in foreign markets matter? Journal of Business Research, 324-336.
Sitabutr, V., & Deebhijarn, S. (2017). Community-based enterprise export strategy success: Thailands OTOP branding program. Prague Development Center.
Wang, W., & Ma, H. (2018). Export strategy, export intensity, and learning: Integrating the resource perspective and institutional perspective. Journal of World Business, 581-592.
