Free Custom «Argentina?s Products Markets» Essay Paper

Free Custom «Argentina?s Products Markets» Essay Paper

There are several factors that Argentina must put into consideration before launching opening a new product in any region of the world. First and foremost, determining consumers’ preferences counts a lot in this process (Khanna, Krishna & Sihnha, 2007). Determination and evaluation of consumers’ preference is achievable. The first step in launching a new product should be through singling out the fastest growing market for its products. Under such premise, developing countries would offer the best choice since they lack adequate technology to produce enough products for their citizens. However, Argentina needs to evaluate the political and social systems, viability of foreign investment, labor and capital markets of the targeted country (Khanna, Krishna & Sihnha, 2007).

In order to determine what consumers in a particular region really cherish, it would be important for Argentina to avail samples of different products in that region. In this case, the highest purchased products become the most preferred. This can also be achieved through reliance of the services offered by consumer data experts, talent search firms and end-to-end logistics providers. Argentina enjoys a wider market for its products owing to the fact that it has been able to employ and put into use the services of these experts (Khanna, Krishna & Sihnha, 2007).

Network of Suppliers

Network of suppliers is also a very important requirement when it comes to establishment of a market for a country’s products. In Argentina, formulating these markets is done through many ways. One of them is through employing its own supply chain operations in the targeted countries. Through the assistance of its joint venture partners in these targeted countries, it has been able to put local suppliers in the countries. The same also worked for U.S. when it first entered Russia with its first-food. It was through the help of U.S’ McDonald’s business partners that McDonald now controls about 80% of all the first-food markets in Russia (Khanna, Krishna & Sihnha, 2007).

There are well established supply chains for the Argentina products just like the ones seen in Mercosur region. This has assisted Argentina to develop local and international markets for its products. The fact that Argentina only ventures into the markets with high possibilities of giving good returns has also led to stable network of suppliers. This country avoids regions with unstable logistics systems and poorly developed capital markets since it would not be able to apply its inventory management system and employee stock ownership. Argentina has been training its local managers in these targeted countries. This practice has yielded good results for network of suppliers (Khanna, Krishna & Sihnha, 2007).

Transportation Infrastructures

Transportation network is responsible for the movement of products from Argentina. Just like the ones witnessed in Mercosur, Argentina’s products markets have strong network of airports, ports and highways. Good and reliable transportation networks aids in minimization of inventory and employee stock ownership thereby motivating employees in the distribution chain. In addition, well established transportation network has enabled Argentina to capture and maintain new product markets (Khanna, Krishna & Sihnha, 2007).

Good transportation network that exists in Argentina’s product markets are evidenced by many facts. There are large volumes of Argentina’s products in Latin America which are delivered by air. On the other hand, Ocean transportation has often been utilized to effectively ferry majority of Argentina’s foreign trade to other countries such as Brazil. Argentina has privatized its largest container port, Buenos Aires to improve the services it offers in the field of business such as shipments of chemicals, finished products, and electronics. The privatization of Buenos Aires has helped to boost the growth of Argentina’s transportation network. The recent consensus between Argentina and U.S. about open-skies would assist in widening the Argentina’s transportation network (Khanna, Krishna & Sihnha, 2007).  



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