IQRA UNIVERSITY RESEARCH CENTER (IURC) IQRA UNIVERSITY-IU RESEARCH PROPOSAL Thesis-1 Research Title: Controlling Grey Market Leakage to Improve Supply Chain Profitability Introduction (literature based): Informal sector of any economy comprises of all production of goods and service which contributes to official gross national product but not in books of government or officials. Shadow economy, black/grey economy, underground economy, parallel economy, ‘off the book’ and ‘under the table’ comes under a larger umbrella of informal sector. With every passing day economic activities are increasing and making this world a global village. Thanks to channel members that spread the product from manufacturer to final consumer with the help of set of distributors that are present worldwide. But this growing market can cause unwitting customers to buy a product from unauthorised distributor, buy the product which not made for that particular region or country, buy with warranty that is not authentic or worse is buying a counterfeit product. Concept of grey market takes under the consideration of leakage from regular (formal) supply chain inform of finished/semi-finished or raw products. This leakage is mainly done in form two ways. One is theft and other in counterfeit products. In simple word the difference between the two, is nature of the product. If original product is being sold through unauthorized distribution network, this means that its theft from formal supply chain. That is again caused by several reasons and in different forms. On the other hand if the product in not genuine, than its problem of counterfeit product (product that is replica of original) Every year, goods being sold in grey are runnin... ... middle of paper ... ...eakage of product in grey market. Grey market is not influencing manufacturer only, brand image and consumer are also victim of this serious problem. This research primarily focuses on remedies to problem of leakage of product in grey market. Model Framework to be Used Variables to be Studied: Proposed Research Hypothesis: . Sources of Information: Sampling Technique & Procedure : . Sample Size: Method of Data Collection & Procedure: Instrument/s of Data Collection: Statistical Tests to be used: Possible Research Findings:: List of References: Myers, M. B. (1999). Incidents of gray market activity among U.S. exporters: occurrences, characteristics, and consequences. Journal of International Business Studies, 30, 105-126. _______________ __________________ Thesis Supervisor Head Research IURC
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
Many business owners and entrepreneurs are doubtful about the global opportunities available to their business. In other words, business owners don’t give consideration to the world markets, instead they tend think locally in terms of gaining customers. This doubt however is unfounded. The international trade commission reported that 70% of the world’s purchasing power and 95% of the world’s consumers are located outside of the United States, which means that there is a massive market that is currently untapped by 99% of business in America. In addition to doubt, there is the uncertainty about exporting to other countries, this uncertainty may stem from lack of knowledge about foreign trade and the international laws. A business owner may be uncertain about how, when, where, and to whom it is legal to ship their products. Although, this uncertainty is understandable it is not required for businesses that are conducting business legally within the United States, business owners should remain mindful of this so that they can push their uncertainties aside. The last factor that deters businesses from international trade is Fear. Fear that there will be unforeseen and uncontrollable issues with transporting goods such as: theft, loss, damages, diversions, and/or regulatory penalties that may be imposed on the business. Although, there is a
The presence of established competitors poses the biggest threat to Salomon. Customers create a high demand for products in the ski and snowboard equipment industry. Salomon enjoys buyer loyalty, but if they are unable to complete production in time to meet customers’ demand, customers will purchase products from other companies. The primary threat of new entrants comes from internet sellers, but Salomon has customers that are loyal and it would be difficult for new entrants to achieve the same level of brand loyalty. The threat of substitute products also provides a small threat, with the potential for counterfeit products to dilute the brand value as a
The ending of the economic embargo of Vietnam in 1994 opened a new panorama over international marketing. A new high potential market, with more than 70 millions of people was avaiable for the companies: the next great frontier.
Trading internationally, along with foreign trading policies has always been a controversial issue in America. Free trade is just as taboo if not more so. Today, the United States has made an attempt to maintain an open market of trading. Free trading greatly benefits a nation’s economy. The history of trade in The United States dates back over half a century ago. Through a substantial part of history, the United States had implemented rather extensive barriers and restrictions regarding importation, in order to better protect domestic suppliers from any serious foreign rivalry. Regardless, of Government restrictions and barriers set in place to avoid foreign competition it is healthy for our nation to have motivation and have the desire to
Some quantities of the company’s products find their way to unapproved outlets or distribution channels. This gray market for Callaway’s products can undermine authorized retailers and foreign wholesale distributors who promote and support the company’s products and can negatively impact its image in the minds of its customers. On the other hand, stopping such sales could result in a potential decrease in sales to those customers who are selling Callaway products to unauthorized distributors and/or an increase in sales returns over historical levels.
Though rarely given enough attention in the press, the global network of counterfeited goods such as prescription drugs, watches, and handbags have become a serious problem in the world. This economic network impacts transnational economies than almost any other force because... The film Illicit: the Dark Trade draws attention to this growing problem that affects our now globalized economy. Also, the movie is an adaption to Illicit the novel written by Dr. Moisés Naím. The film explores a maze of illegal activities and provides evidence supporting the idea that the sale of counterfeited goods results in government instability, money laundering, corruption and a host of other problems around the world that globalization has brought upon today’s society. The wealthier countries exploit innocent people for economic growth and create unequal distribution of wealth, which leads to a decrease in over economic productivity and slows economic growth. Low-skilled workers in developed countries who will see a decrease in wages due to the competition that they face from low-skilled workers in developing countries who will see an increase in wages. Economists have come up with an idea that trade liberalism is the force behind the rise of inequality in the United States and Western Europe, because of the boost in trade with poor countries and fragmentation of means of production, that has caused low-skilled jobs to be outsourced. Where treatment of the workers are inhumane and the unequal distribution of wealth will lead to an increase in poverty because the inequality leads to harmful for development that is generated because too he pressure that is created by inequality, this is directed the states having to adopt to redistributive polici...
Difficult to regain trust of existing loyal customers who expected high quality and performance when in competition with other firms in upper trade market.
...arrell, P. N. & Wood, P. A. (1994). International Market Selection by Business Service Firms: Key Conceptual and Methodological Issues. International Business Review, 3(3), 243-261.
In this brave new world, businesses are always competing with each other to achieve the market share in their product group. This competition between commerce has coined the word dumping. Dumping causes nations like the United States to establish antidumping laws, which look to avoid products manufactures abroad from being sold by overseas firms in America, less than the fair value. These laws were planned to obtain free trade between nations as well as advantageous to US consumers. On the other hand, in actuality their influence is anything although advantageous to the US consumers. Of inferior quality, these laws drive up the costs of imported parts utilized by other American enterprises, making their products less aggressive in global markets. Consequently, the antidumping laws, American consumers are paying higher prices for both international and national goods, as well as Americ...
Fake brands become popular such as in electronics, watches and wear. These fake brands found in every place like in the street, store and even in malls. These fake brands consider counterfeit products of original products such as shirts, phones, shoes, headphones and headset. Fake brands should be prohibited because it is formed from low materials which will be seen as low quality, these counterfeit products make companies of the original products lose much money and it makes diseases such as counterfeit products of headset.
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
Black markets are the underground markets that operate outside “the legal system in which either illegal goods are sold or legal goods are sold at illegal prices or terms.” Black markets are characterized by high prices, violence, and defective products. The high prices in black markets, especially in comparison to legal markets, comes from the risk that the supplier is undertaking. Suppliers are taking the risk of “arrest, possibility of a fine or prison sentence, and so on.” The violence that many times characterizes black markets stems from the fact that there are “no legal channels for the peaceful settlement of disputes” and the party that does not follow through with the agreement must be made to follow the agreement, many times through the use of threats or force.
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
...w. This is because consumers’ were not aware about these brand products due to the lack of promotion and advertising to grab the attention of consumers’ about their brand. In addition, the locations of the KR1M shops also were far from the consumers’ residents. So consumers’ were preferred nearest shops rather than wasting their time to search KR1M shop. This is because, in consumers’ mind the KR1M products have a medium of quality that not really bothers them as much as the well-known brand that have a high quality. For the manufacturer brand products, the purchase intention was high. This is because the manufacturer brand products were well known and it has their own brand image in consumers’ mind. Other than that, consumers’ also have more knowledge about these products due to aggressive promotion by the manufacturers through mass media and also printed media.