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Market Entry

Spirito would research differences in culture, sales processes, economic zones, financial situations, and logistics when contracting with EasySell. Using TMall could require shipping from China, registering locally, and competing with local brands while relying on EasySell. Spirito could establish contracts detailing expectations, conduct due diligence on legal issues, and ensure EasySell meets agreements. To facilitate direct communication between EasySell and warehouses, Spirito should establish communication methods, monitoring, documentation, and address potential barriers through training and translation.

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549 views

Market Entry

Spirito would research differences in culture, sales processes, economic zones, financial situations, and logistics when contracting with EasySell. Using TMall could require shipping from China, registering locally, and competing with local brands while relying on EasySell. Spirito could establish contracts detailing expectations, conduct due diligence on legal issues, and ensure EasySell meets agreements. To facilitate direct communication between EasySell and warehouses, Spirito should establish communication methods, monitoring, documentation, and address potential barriers through training and translation.

Uploaded by

Angelica
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

List at least four areas Spirito would have researched before contracting EasySell as a
third-party intermediary to assist with gaining entry to the Chinese market.

Spirito would have researched the following areas:

 Differences in culture between the country of origin and the place where the product is
sold.
 End to end sales process, and after sales service.
 If there are any special economic zones, businesses should think about them. Each of
these zones has its own set of regulatory requirements and amenities to provide
international trade enterprises.
 Financial situation, storage and transportation of goods, distribution channels,
documentation, and customs related areas.

2. What are some of the potential disadvantages of Spirito using TMall’s online service to
sell its clothing brand in China?

 As per Chinese market regulations, the seller must be able to ship and receive items
from within China, as well as provide clients with an in-country return policy.
 Spirito must register in China which can increase compliance and tax liabilities.
 Competition over local competitors.
 Spirito will have to depend on Easy Sell for the end-to-end sales process.

3. What are three strategies Spirito could use to prevent the potentially negative
consequences that can arise when hiring a third-party intermediary?

 Make use of contracts and agree about service level expectations and service standards
for return policy.
 Do background check and assess the legal and regulatory issues related to providing
services for the target customers with a high degree of due diligence.
 Ensure that the intermediary will abide by the representations and warranties.

4. At the end of the case, the Spirito team identified a new challenge: the need to
facilitate direct communication between EasySell and the warehousing partner. What is
the best solution to this challenge? Identify any associated risks that may come from
implementing this solution and provide suggestions to mitigate the risks.

The best solution would be communication, monitoring, documentation, finalizing an agreement,


and negotiating a contract. EasySell and the warehousing partner can conduct conferences to
monitor progress.

There might be complexities in communication, culture, and language barriers. Still, these can
be avoided by having clear objectives, scheduling a regular progress update, creating a shared
information plan and report, orientation and training, using visual communication methods,
hiring an interpreter if needed, and translating documents.

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