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Essay / Research Paper Abstract
This 3 page paper looks at the ways in which an export strategy benefits the aircraft industry in New Zealand, how a global strategy can help and be aided by cost advantage and differentiation. The bibliography cotes 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEairnzea.rtf
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Unformatted sample text from the term paper:
supply to the training of pilots, the location of the different companies in the same region support each other. It may be argued that the main strategy followed, especially in
the manufacturing; that of an international exporter has a number of advantages. There is little doubt that there is an international demand for the goods and services that are
sold, this has been seen with the aircraft that have been built and the orders place with both Pacific Aerospace Corporation and Alpha Aviation. It is likely that a firm
with commercial interests will want to take on all contacts that can be fulfil profitability, and despite the location of New Zealand being idea for pilot training, this country alone
is unlikely to have sufficient demand to keep all of the companies busy. This means that sales to international markets are needed in order to gain sufficient capacity to meet
company goals. An export strategy is one that may be seen as advantageous. Exporting is often the first stage of internationalization; it may be seen as maximising the potential of
the investment risk with the ability to leverage the market potential. When looking at the reasons why a firm may choose this strategy, if there is limited international
demand then cost of setting up new facilitative may not be viable, may have a high opportunity costs and may increase the exposure of the company to risk, as well
as potentially require a stretch in resources, it is not only the capital that is needed, but also knowledge of the local markets, such as knowledge of local labour laws,
and the need to deal with a steep learning curve (Mintzberg et al, 2003). In the airline industry it may be argued that the production of the goods do not
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