Cretors & Co. has been in business for well over 125 years. The company invented the first commercial popcorn machine which is the object that catapulted them into business in 1893. As a leader in designer and manufacturer of food processing and concession equipment, the company has a firm grasp on what it takes to make it in the global marketplace. The company has been so successful over the years that it is now run by the 5th generation of Cretors. Question 1: Exporters face the problem of locating foreign markets. How does Cretors deal with this problem? Cretor was reactive when the world market came to them to provide products around the globe. The company, once it invented the popcorn maker, was basically a U.S. product that was predominately utilized in the movie theater markets. Western Europe, Canada, Mexico and Romania are the largest global partners. The company adapts their products to meet the needs of the market and adjusts their advertising to fit the culture of these countries. Question 2: What are the benefits of using distributors to sell in foreign countries? Foreign distributors purchase merchandise from the U.S. company and re-sell it at a profit. These distributors know their customers so they know where the needs are and can fill that need with Cretors products. They maintain an inventory of the product, which allows the buyer to receive the goods quickly. Distributors often provide after-sales service to the buyer. An agreement with any overseas business partner -- whether a representative, agent or distributor -- should address whether the arrangement is exclusive or non-exclusive, the territory to be covered, the length of the association, and other issues. What are the possible drawbacks? Finding overseas buyers for your products need not be more difficult than locating a representative here in the United States. It may require, however, an investment of time and resources to travel to your target market to meet face-to-face with prospective partners. The company also requires a service agent located in the area where the product is being sold that can work on the units and being able to ensure that the service calls are handled in a timely fashion is very important. One way to identify those interested in your product is to tap the DOC's Agent/Distributor Service. This program provides a customized search to identify agents, distributors and representatives for United States products based on the foreign companies' examination of the United States product literature. Why might foreign distributors see Cretors as a desirable business partner? Foreign distributor will likely find Cretors as a desirable business partner because they are able to work closely with the distributor because they are willing to combine shipments to help save the distributor both time and money when it comes to obtaining the products. Question 3: How does Cretors meet the challenges of financing international sales? Cretor is able to meet the challenges of financing international sales through its various financing methods. These include open accounts for their established customers and for small orders as well as accepting deposits on orders or requesting full payment from new customers or for unique orders. Industrial machinery requires a 25% deposit prior to the items being shipped.

References:

McGraw-Hill Irwin. (2008). Exporting popcorn products to global markets featuring C.Cretors &Company. Retrieved October 30, 2010, from http://video.franklin.edu/Franklin/mba/727/mba727.html.