Product readiness for ExportFollowing approval of ABD's strategic intent, Dr.Bentley and his management team addressed questions about the challeges of internationalization. The first dealt with training sales representatives in foreign markets to sell medical devices to hospitals ans clinics, the primary end markets for ABD products. Sales reps require training be-cause they deal with doctors, nurses, and other professionals who are deeply involved in decision making about purchases of hospital supplies. Because traning costs can be high in foreign markets, Dr.Bentley wanted to en-sure ABD was prepared to make this investment.DO.Bentley also raised the issue of after-sales service, which can be challenging in foreign markets. Because ABD's products were seldom defective, the solution for a defective products was to replace it rather than trying to make a repair. U.S. customers counted on a ready backup stock in the event of product defects. ABD planned to employ the same solution for its foreign operations, and management assumed there would be no need for a separate staff to deal with after-sales service. Because Speedheal devices are small and lightweight (though valuable), per-unit transportation costs are very low. In fact, in urgent situation abroad, ABD already made it a practice to ship a replacement device by air.While management well understood pricing in the United States, there was much it did not know about foreign pricing. Dr.Bentley and several managers had attended trade fairs in Europe and concluded that ABD's prices were not too high, particularly since no other firms offered similar products. In fact, ABD had filled unsolicited orders from Europe and found that customers never challenged its pricing. In the end, however, management decided research was needed to refine ABD's pricing approach.Next, the tram discussed foreign inventory management. Because the devices were cheap to transport by air freight, distributors could replenish inventories quickly and economically, a significant benefit because they would not have to maintain much inventory to support sales. On the other hand, Speedheal devices were sensitive to changes in temperature and humidity and functioned best when warehoused in climate-controlled facilities. Such warehousing was increasingly common, so ABD should have no problem locating the right warehousing in Europe and elsewhere.ABD's management realized the firm's flexible packaging put them in a good position to enter foreign markets, and they were also prepared to modify the product in various ways to meet worldwide standards and regulations. Two in particular were the CE mark, a mandatory safety mark required on toys, machinery, and low-voltage equipment, and ISO standards, which aim to make development and manufacturing of products efficient, safe, and clean.
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