Case SpinCent: The Decision to Export

SpinCent Case
Name Course Instructor Date
Case SpinCent: The Decision to Export
* List the challenges that SpinCent overcame in developing its export strategy.
* There were “unexpected complications, such as customs or credit problems, increased administrative costs” (Daniels, Radebaugh & Sullivan, 2019).
* SpinCent has a thin management structure and has mostly focused on the domestic market (Daniels, Radebaugh & Sullivan, 2019).
* The company’s founder was keen on growth in the mature US market and did not fully embrace the idea of exporting at a time when the company was experiencing difficulties to grow in the domestic market even as the US is a mature market and a shrinking market.
* SpinCent is a small-scale company, which limited the company’s competitiveness and export abilities.
* There is direct competition from seasoned and experienced exporters with an established market.
* The foreign competitors were able to sell cheaper priced centrifuges in the international market.
* There were difficulties identifying distributors and potential agents who had the resources and reputation for growing export transactions.
B. Describe and evaluate the processes it followed to overcome each challenge.
SpinCent representatives focused on establishing a loyal customer base so there would be better prediction of demand and there was focus on partnering with businesses that would sell its products. Establishing relationships with the distribution networks where the company will operate will also increase competitiveness and sales. While the domestic market provided steady returns and profits, the search for export potential had been unsuccessful, and there was a need to focus more on the ma...