Case Study of “Sterling Marking Products Inc Essay

Coming into my role in 1986 to oversee the foreignistic securities industrying, Sterling had begun exporting sub-assemblies to the U.K. Sterling is now utilizing Julius Blumberg to expand sales into the US. Our sales inwardly both markets are accreditedly not living up to what the International Marketing Committee believes to be our true potential. Regarding sales within the US, Sterling needs to leverage the knowledge and information gained from doing business through and through Julius Blumberg to sanction a direct line of sales within the country. apparently being in a catalog of another company is not meeting expectations. We need to leverage the aggressive, direct sales methods we saw be given that Blumberg does not feel comfortable with this line of marketing, we should look to establish a subsidiary within the country to gain direct oversight over the operations. With c turn a loss proximity of major urban centers to our Canadian offices, I feel that this can be acco mplished with minimal try. Noting that the increase in lawyers and incorporations year over year is 10x that of Canada the possible returns outweigh the overall risk involved in seeking a more than direct refinement into the US market. Looking at the current environment in the UK, I see a different situation and path. The UK consists Sterlings high hat potential market in Europe given its legal requirements for seals and its 2.5x yearly increase in lawyers and incorporations compared to Canada. Unfortunately, with a VAT of 15%, manufacturing within the UK volition decrease overall margins.Continuing to manufacturer within Canada at our current facilities provide alleviate the VAT and only subject us to the 4.7% tariff. We will also be able to forgo any supererogatory manufacturing deftness costs, or at least delay them until we have significant market penetration. I recommend, that we approach a direct partnership with one of the tierce smaller agents in the UK market eith er Jordan, Davis, or London Law. In our approach to potential partners, we should leverage our ability to enter the market ourselves and repulse them out of the market in our contract negotiations. I would recommend that we do not approach Bolsons as we will gain more leverage on the lesser three since they would have more to lose by another major producer entering the market (ie they collar pushed out of the market completely). This partnership will allow us launch into the UK at minimal overhead costs and put us in a scenario where we can drive how our product is positioned and marketed while leveraging the local anesthetic market understanding and knowledge of the partneringcompany. Currently, we have been approached by representatives in additional countries. I highly recommend that before we move into another international market we strengthen our approach and sales penetration in the US and UK. Once successful, I believe that we should begin working towards penetration in t he Japanese market. With 82,000+ lawyers and a similar GNP per capita to Canada and the US, Japan may represent our next best opportunity to expand internationally.