What types of distribution and logistics challenges do firms face in the process of going international? Provide examples.
3. Hypermarkets are a dominant retailing format in Europe but not in the United States. What are hypermarkets? Give examples of successful hypermarkets worldwide.
**Use Lascu, D. (2008). International Marketing, 3e, 3rd Edition. Cengage Learning, VitalBook; as primary reference.
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Write My Essay For MeLogistic Challenges and Hypermarkets
Logistic Challenges
There are various challenges that an organization encounters when doing business internationally. According to Christopher (2016), modern businesses must deal with emerging challenges such as safety concerns where firms are required to track freights from all parts of the world, anticipate plans and also develop a backup plan. Additionally, the firm must come up with a financial model that is cost efficient that can guarantee the organization timely delivery. As international trade continues to grow, the following distribution challenges are experienced.
(i) Intermodal transport (where sea, air, road and/or rail may be used)
(ii) Currency exchange problems when dealing with payment of taxes, border treaties, piracy hotspots, and government charges
(iii) Transport management in order to minimize freight charges and reduce time
(iv) Security because some routes are more dangerous and there is a need to maintain safety of operators, vehicles, and goods
(v) Communication problems due to cultural, religious, and language differences…