REW has won many awards for the design and style of its carpets and rugs. All the wool it uses is from local suppliers. REW’s objective for this year is to survive and remain in business. The Managing Director is concerned that the country’s Gross Domestic Product has been falling for some time. During the recession the Managing Director plans to start selling REW’s products in other countries. Market research suggests demand would be high.
- REW TABLE.JPG (20.5 KiB) Viewed 4 times
04 Do you think REW should start selling its products in other countries? Justify your answer. [6]
Possible KN Points:
• Spread risk
• Greater recognition OR brand awareness
• Existing competition
• Lack knowledge of local markets and tastes
• Language barriers
• Exchange rates problems
• Tariffs
• Quotas
• Transport problems OR distribution problems