Sales Distribution Channel,Taxes, Quota, Tariffs In Korean Seafood

1129 words - 5 pages

Sales distribution channelsLocal representation is essential for the success of foreign firms in the Korean market. This is especially true when considering the fact that in Korea, business relationships are built upon personal ties and social introductions, and that much of the major third-country competition is only a few flight-hours away. In addition, for sectors that involve any type of government procurement, an entity must be registered with the Korean government in order to bid on the procurement projects. Hence, many American firms enter into a consortium with a Korean company or enter into a representative agreement, especially for the purposes of market entry. Finally, the language barrier and established social/ business circles make it extremely difficult to enter the Korean market without a qualified Korean representative.Distribution methods and the number and functions of intermediaries vary widely by product area and local conditions. The market for most consumer products is concentrated in major cities. Retail distribution is accomplished through a highly complex network, the majority of which are small family-run stores, stalls in markets, and street vendors, though this traditional distribution method is changing rapidly toward large-sized discount stores. There are many large retail stores in the major cities, especially Seoul, Daegu, Busan, and their outer-lying suburbs. This distribution channel is one of the best ways to market foreign products to Korean consumers. Recently, retailing concepts such as Full-Line Discount Stores (FDS) including Price Costco (USA), Wal-Mart (USA), Carrefour (France), and E-mart (Korea) have gained tremendous popularity in Korea. Rapid expansion of these discount chain stores is planned nationwide, with suburban satellite cities attracting the greatest number of stores.In November 1995, regulations from the Korean Ministry of Finance and Economy (MOFE) went into effect, which allowed the legal entry of parallel imports. Prior to this legislation, distribution was disciplined with exclusive distributor/agents agreements. Besides an authorized and registered distributor/agent, no other importer could legally clear goods through Korean customs. As a result, importers that were not the exclusive distributor/agent found their shipments frequently held up at customs.The effect of parallel imports is to marginally reduce the value of an exclusive distribution agreement. Many American companies continue to give exclusives, since they have in place territorial limits in neighboring countries that enhance the value of the exclusive in any one country. Likewise, any parallel importer in Korea that is not receiving the support of the OEM, and does not deal in the same volume, cannot be guaranteed a steady source of supply. As noted above, the legitimate exclusive distributor still has considerable advantages in Korea.200120022003 (E)2004 (P)($000)($000)($000)($000)A. Total Market...

Find Another Essay On Sales distribution Channel,Taxes, Quota, Tariffs in Korean Seafood

Trump's Tariff on Washers compare with U.S and International. - Bus 201 - Research Paper

2209 words - 9 pages Free Trade Agreement and the imposition of tariffs on foreign steel and aluminum. He has yet to make good on any of those threats. Instead, the White House took action on imports of washing machines and solar products based on requests by companies who said their operations in the United States were being harmed by imports. Whirlpool Inc. appealed to the White House for help in curbing washing machine imports from its Korean competitors, while two

Channel and Pricing Strategies Essay

2549 words - 10 pages . In the beginning, Kudler has the luxury of creating one condensed channel for product distribution through car sales. As the product evolves and adapts to more products however, Kudler must reconsider adopting business partners and new channeling approaches to stabilize the wide-spread demand for the product.Domestic and International Markets Pricing StrategyIn 2010 United States population reached more than 310 million. Using the population data

Laura Ashley Federal Express Case - Suny Adirondack - Essay

618 words - 3 pages strategic options for Xerox? Pros and Cons of each? 4) What Should Xerox Do? 2. Verklar Austria (Case #KEL037) 1) Why is Verklar’s market share dropping in the Austrian market? 2) How would the Quota System change the way channel flows are performed in Verklar Austria’s channel? 3) Comment on the efficiency (i.e., cost) and effectiveness (i.e., satisfaction) implications of implementing the Quota System. Should it be implemented? 4) Will the

Australian TCF Industry Tariff Redutions

1370 words - 5 pages finished goods.A distinguishing feature of the Textiles, Clothing and Footwear Industry has been the high levels of quota and tariff protection applied by many countries. The Australian TCF industry is no exception to this rule, enjoying high levels of protection with tariffs running as high as 30%. Tariffs are taxes imposed by the government to provide protection against foreign imports that can offer the same products for a cheaper price. To evaluate

Sales Ethics

1350 words - 5 pages customer and the market. In such cases, the salesperson represents the firm to most, if not all, of its downstream stakeholders: customers, channel members, and even competitors. As the primary boundary spanner between the firm and its customers, the salesperson faces a constant barrage of decision-making about ethical issues. (Meyer, Charlene, 2003) A lot of pressure is put on sales people. They have to make sure that the product is sold or no one

America - A Nation of Immigrants

5514 words - 22 pages National Origins Quota System, which discriminated against Asians and other minorities. President Johnson declared that those who could contribute most to this country in growth, spirit, and strength would now be the first to be admitted to this country. Family reunification provisions that dominates American immigration law aided the Koreans in achieving a family migration to the United States. The earliest Korean immigrants first settled in

Ast1 Task 1

750 words - 3 pages Company S, as a new manufacturer in the motor scooter market, must develop marketing strategies to ensure the continued motivation of its new channel partners, in order to secure sales and garner its share of the marketplace. These channel partners have a strong loyalty to the competitors products; but with the proper mix of sales strategies, Company S will be able to penetrate the marketplace and develop strong and lasting sales partnerships

A study of blood perfusion mapping was performed with a remote opto-physiological imaging (OPI) system coupling a sensitive CMOS camera and a custom-built resonant cavity light emitting diode (RCLED)...

1279 words - 5 pages Distribution Channels for Motorola XoomHistorically, marketing channels have been viewed as a bridge between producers and users of goods and services. Since Motorola is aiming for taking over a amount of the market share for Tablets in the UK and it is therefore very important that they choose the distribution channels carefully since the distribution channels will affect every other marketing decision such as pricing, sales force

clearwater seafood

1476 words - 6 pages , they also set the quotas for each fishery company.Despite the regulatory restrains Clearwater was facing, the changing consumption trend and exchange rate risk also can have huge impact on Clearwater's sales. Consumption trends indicate that consumers were shifting their demand on low-value seafood to high-value seafood as the demand for health benefits and nutritional value increase. Moreover, the change in exchange rate had direct impact on

Azalea Seafood Gumbo Shoppe Business Analysis

1328 words - 5 pages Azalea Seafood Gumbo Shoppe is in the Seafood Packaging Industry . In this industry companies take raw seafood materials and package them to sell to supermarkets, grocery stores and restaurants. While Azalea does direct sales through catering the bulk of its revenue is derived from wholesaling its foods (Appendix A). Larger compnaies in the industry typically work through a food broker that will arange selling to supermarkets or grocery


2728 words - 11 pages Harlem district: sleeping in shifts, 'Rent parties'. 2  Reasons [PAT GOT CASH]: Population growing rapidly/ Abundant raw materials - esp. coal, iron and oil/ Tariffs protected American industry/ Government relaxed regulations and low taxes (laissez faire)/ Opportunities of New Technology (e.g. electrical, radio, film, nylon)/ Techniques of production - Ford's Assembly line, and Frederick Taylor's time and motion/ Cycle of prosperity

Similar Essays

Determining The Place And Functions Of The Cash And Carry Wholesaler In The South African Distribution Channel

7493 words - 30 pages result of the inclusion of the spaza shop target market. The research shows that the spaza shop is a vital future market of the cash and carry wholesaler.In the research undertaken, the opinions of cash and carry wholesalers were gathered on various aspects of the role of the cash and carry wholesaler in the South African distribution channel. The main findings are that mutual competition has increased and this is threatening the survival of the

Supply Chain Management In Seafood Essay

2172 words - 9 pages Management (SCM), in particular in the links of packaging, transport and distribution which are vulnerable to damage. SCM is the collaborative effort of numerous channel members to design, implement, and manage seamless value-added process to create value for end customer. This report reviewed the various changes in the seafood market in the last 10 to 20 years and discussed the impact of supply chain management in seafood industry. The key

Azalea Seafood Gumbo Shoppe Case Analysis

2187 words - 9 pages Azalea Seafood Gumbo Shoppe is in a stage when development of a complex business strategy is needed because of insufficient use of production capabilities, need for a bigger market share and financial results that cannot satisfy owners needs. Current strategy of the company is primarily focused on increasing the market share in the United States in order to increase the amount of sales. This is done by direct marketing activities and

Governments Involvement In Trade Essay

762 words - 4 pages . Secondly, another way a government can help its nation is by creating quotas. The official definition of a quota according to the International Business textbook is: “A restriction on the amount (measured in units or weight) of a good that can enter or leave a country during a certain period of time” (Wild 164). Quotas come in second as the most frequently used type of trade barrier, after tariffs. Governments usually give out quota licenses (yearly