Export Practices and Management

Question: Write about theExport Practices and Management. Answer: Introduction The following assignment is an essay that focuses on the effect of the gray market upon the Apple's authorized distributors in China. It further concentrates on the perspectives of the individual Chinese consumers. It is witnessed that the trading of the gray market is an ongoing problem that is affecting the business of the authorized organization as their brand value is decreasing at a rapid rate. People are keener about purchasing a product from the gray market as it enables the customers to buy smuggled products at a very less price. On the other hand, it is further seen that the gray market has certain advantages for the people belonging to the low-income group. The Apple because, it becomes difficult for the people to purchase such costly phones that ar manufactures it (Wei, Y.S., Samiee, S. and Lee, 2014). Thus, the people could buy the same product which is smuggled and hence at a very low price. On the other hand, the essay further explains the reasons that made the occurren ce of the gray market and its impact upon the authorized dealers of the Apple Inc, the manufacturers and the consumers. Body It has been witnessed that it is not always the electronic products that are sold in the gray market, but it is also the selling of automobiles, luxury goods and another type of products are done trading. Some reports are found which claims that there is a loss of some billion RC that an IT company had to go through a loss. It all happened due to the computer related products that were being passed through the gray market. Therefore, at every instance, the authorized dealers of the organization suffer a loss percentage (Lee, C.L., Stevenson, S., and Lee, 2014). Similarly, the apple organization also goes through the same problem when its products are passed through the gray market. This smuggling tends to create damage in the relationship that is shared between the customers and the organization and the brand quality of the products decreases due to this cause. Therefore, the team could track their distribution with the serial number tracking such that these problems do not affect the goodwill of the organizations (Felman, et al. 2014). Several reasons are made to the occurrence of the gray market such as the products are sold at a very less price. Therefore, it tends to attract the customers at a larger range. It is because, the customers could purchase the branded product at a very affordable price, which they would not be able to buy from the authorized dealers of the organization. Therefore, the acquisition of the goods becomes very easy for the people. Along with that, it tends to save the time of the citizens to order the product and then to purchase it including the service tax and the shipping tax (Lustig, N., Pessino, C. and Scott, 2014). However, in the gray market, the people would be able to purchase the right in short time and in fewer prices, which they cannot, from the authorized dealers of the organization. On the other hand, it is further seen that the gray market also adds value for the organization to make the sale of the product to happen in a maximized manner such that they could gain a high value of the goods in the market. On the other hand, this would further cause the customers to buy more of the products from the gray market at a lower price (Wu, J.C., and Xia, 2016). The impact that gray market has upon the authorized dealer of Apple is that the pricing stability of the products is damaged and there is a conflict with the prices in the direct sale of the goods. On the other hand, the possibility of dissatisfaction being created among the customers due to the lack of quality of the products. On the other hand, it is further seen that the demand for the product also goes down and there is a decrease in the brand name of the product in the market. On the other hand, the disadvantaged that is witnessed in the purchase of such product is that there is no warranty given on the products. Therefore, in case the product appears to defect then the customer could not do anything regarding the product. Therefore, for such a reason it is better to purchase such electronic goods from the main market and the legal distributer (Yin, 2016). Conclusion It could be concluded from the discussion that is stated above that the gray market is an ongoing problem that is causing a bad impact upon the real or authorized dealers in the market. It is seen that the price value of the products keep decreasing in the market and the brand of the product also gets affected due to the increase dealing of the products in the gray market. At the same time, it is seen that there are several advantages that are witnessed which are associated with the gray market. The price being low there are opportunities for the customers to purchase more of the products from the gray market. Moreover, electronics device plays the vital role in the gray market, where the customers at a very low price could obtain the branded products. This medium further enables the customers to save their money, time and help them to keep their focus on the main game (Cl, S., Cataldi, A. and Zoppoli, 2015). Together, with this, it could be said that the gray market makes many profits from the distribution of the smuggled products of the branded organization. On the other hand, it is also considered as illegal as it comprises of the hidden products and hence could be a crime for the customers who are purchasing it from the gray market. Thus, such products so not guarantee a good quality, therefore, the lag in the quality assurance would remain there with the products that are purchased by the customers from the gray market (Aghdaie, M.H., Zolfani, S.H. and Zavadskas, 2013). Reference List Wei, Y.S., Samiee, S. and Lee, R.P., 2014. The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market.Journal of the Academy of Marketing Science,42(1), pp.49-70. Felman, J., Gray, S., Goswami, M., Jobst, A.A., Pradhan, M., Peiris, S. and Seneviratne, D., 2014. ASEAN?5 bond market development: Where does it stand? Where is it going?.Asian?Pacific Economic Literature,28(1), pp.60-75. Wu, J.C., and Xia, F.D., 2016. Measuring the macroeconomic impact of monetary policy at the zero lower bound.Journal of Money, Credit and Banking,48(2-3), pp.253-291. Yin, M.S., 2013. 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