Question

Identify/describe your favorite product and indicate the name of the company which developed/made it and answer the following questions:

Identify/discuss (using examples) at least 2 advantages and 2 disadvantages that the product you identified is sold internationally. These could be from the perspectives of the company concerned and/or the country where the product is sold.   Identify/discuss (using examples) at least 2 advantages and 2 disadvantages if the product you identified was sold only in the home country of the company . These could be from the perspectives of the company concerned and/or the home country. (minimum 200words)

Answer 1

My favourite product is iPhone which is an american product.

The following are the advantages of selling the iPhone in Internationally :

• HIGHER REVENUES: Bigger the market bigger is the customer base and hence higher shall be the revenues generated.The result is growth of business and expansion.

• RISK DIVERSIFICATION : Each country is a different market and behaves differently.This is a great advantage.Business cycles will vary in these different markets.At times it could be that tere is a slackness in one country,which could be because of any factor, and profits/sales might be dipping but te other markets could be on a rise.Hence loss from one market gets compensated (at times more than compensated) from the other market.Business can also analyse on focus on high revenue markets.

The following are the disadvantages of selling the iPhone Internationally :

• PRODUCT IMITATION: When sold internationally chances of inferior imitated versions of the product getting developed is great.In case of iPhone it is well known that it has happened.This has a negative impact on growth.Also it becomes difficult to controll these local imitators as local laws amy not be same as the American laws or getting American copyrigt treaties may not be easy.

• SERVICING CUSTOMERS: Providing after sales services to customers could be another challenge.Again language and cultural differences would further add on to the challenge.

Advantages of selling iPhone only in American market ONLY:

• SIMPLER MARKET ANALYSIS : In case of international markets te complexity of study of market is high because of cultural,histiorical , political , economic variety.Substantial investments may be required to be made by the Company in resources for gettiing the analysis done for taking correct decisions.These complexities are avoided when operating in home country.

• COMMUNICATION EASE: Since the customers are from same cultural background and language it is easy to communicate wit them and also easy to understand their aspirations and product expectations.

Disdvantages of selling iPhone only in American market ONLY:

• LIMITED MARKET SIZE: If sold only in America the product market will have limited size.As a result expnasion of business too gets limited and hence there is a capping on te revnues.

• INCREASED COMPETITION:If sold only in america then iPhone has to compete in a cowded marked where other players too have a share.Such intense competition would put pressure on margins and might force the company to lower the prices which might result iin compromising on the quality of inputs that go in making the phone.This would in long run lead to compromising on te "nische" product experience.