Florida Jetskis,based in Miami,wants to export,but,being a small third generation family business is cautious,particularly with respect to financial risk.The CEO,Armand Millard is contemplating the firm's approach to exporting.Which of the following is a strategic step that you would advise Florida Jetskis to take to increase its probability of exporting successfully?
A)avoiding the use of export management companies to contain costs
B)entering several markets simultaneously to hedge risk
C)entering a foreign market on a small scale
D)waiting for export opportunities
E)avoiding recruitment of local personnel

Question

Quizplus · Accepted Answer

Entering a foreign market on a small scale is a strategic step that can help Florida Jetskis to increase its probability of exporting successfully. This approach allows the company to test the waters and gain valuable experience in a foreign market with lower risk and lower investment. It also enables the company to learn about the market, establish relationships with customers and suppliers and adjust the product to the local needs and preferences. Once the company gains confidence and experience, it can expand its operations and investment in the foreign market. Avoiding the use of export management companies, entering several markets simultaneously, waiting for export opportunities, and avoiding recruitment of local personnel are not necessarily effective or relevant strategies for increasing the probability of exporting successfully, and may even hinder the company's performance and competitiveness in the foreign market.

Florida Jetskis,based in Miami,wants to Export,but,being a Small Third Generation