JL Racing Case Study

JL Racing Case Study
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JL Racing Case Study
Over the past decade, steady structural and technological changes have made it easier for small companies to participate in the global economy. Innovations in the ICT sector propelled by the internet have been the major driver for change, expanding the marketing potential for small and medium enterprises in the United States and across the globe. Additionally, governments have been making efforts to reduce barriers to international business activities, especially at regional levels, by implementing policies that would benefit the small and medium enterprises sector. Even though these innovations and policy changes have influenced international trading activities, small companies are still relatively underrepresented in global business activities. According to the Organization for Economic Cooperation and Development (OECD), small companies only contribute less than 10% of foreign direct investment to the global economy even though they make up over 95% of internal market participants and contribute over 45% of direct added value (Sadiku-Dushi et al., 2019). In this assignment, I will highlight the main challenges facing small companies when doing business while describing international marketing strategies implemented by JL racing, a surfwear manufacturer and designer based in Orange Country, California. Finally, I will discuss some of the international sales strategies the business uses that affect its domestic operations.
When doing business internationally, small businesses need to operate a supply chain that spans national borders. This is a big challenge to these businesses since the intricacies of imports, shipping, exports, and operational logistics are highly implicated by trade deals, internal laws, among other complex legislation (Cateora et al., 2020). For example, JL racing, a surfwear manufacturer and designer, finds it hard to deliver their products to Canada on time than in England due to existing regulations requiring all products to be unboxed and checked at the customs office. While there is no 'one-size-fits-all' supply chain strategy, small businesses should strategically develop and expand based on local trade laws and other external influences that might affect their global business (Ribau et al., 2017). Talent acquisition is another challenge that small businesses face while expanding to international markets. Without experienced employees who act as anchors to the business, the company is more likely to fail, which makes small businesses opt for a more expensive option of partnering with a global professional employer organization that might reduce their profits compared to big organizations (Cateora et al. 2020). Small companies also struggle with understanding international customers (Ribau et al., 2017). JL racing exhibited this challenge and overcame it by traveling to other countries and promoting their products by understanding the demands of their customers. This strategy helped them understand the culture and buying habits of their customers, which offered them a competitive edge against other international brands. Additionally, lack of sufficient capital and cash flow is ...