solution
You are required to cover the following aspects:
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What challenges do e-grocers face?
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What are the different business models adopted by e-grocers?
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What are the pros and cons of the models?
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What will be your recommendations in terms of models? Why?
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What will be your recommendations for GrocerMax to generate more revenue and increase the traffic? Why?
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How to you see the e-grocers market in 10 years?
Goals:
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Demonstrate a good understanding of Key concepts delivered in class.
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Discuss the strategic response of industry incumbents to the challenges coming from digital disruptors.
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Compare the two business models from different angles:
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Assess the strategic options of an asset-heavy incumbent to react to asset-light competitors in a context of digital disruption.
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Identify opportunities and challenges of industry incumbents to transform themselves and better compete in digital business environment.
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solution
Please write long answersss
1-) The importing company in Brazil and major terms of your agreement. The importer is a large and established firm, founded in 1965, with its headquarters located in Sao Paolo. Your initial investigations show that,the company has a good credibility and relations with local banks in Brazil. This will the the first time your company is doing business with this firm. You also learned that this company is importing from many parts of the world for a long time.Your have agreed to export your products to this Brazilian company as CIF with a payment period of B/L+120 days. The importer wants the payment under open account conditions, but you tend to complete this operation under an L/C. So, you are still negotiating the financial alternatives.
2- The profile of the importing company in Japan and major terms of your agreement.The importer is a new and small sized company, founded in 2019 in Tokyo. It does not have long lasting banking relationships in Japan but the founders are young and want to grow their business in the Japanese market. This will the the first time your company will be doing business with this firm.
Your agreement with this Japanese company is FOB. The importer wants the cash payment against documents (at sight), but you tend to complete this operation under a deferred an L/C with a payment term of B/L+45 days.
Question
1-) When exporting your goods to both of these importers, what will be your company’s responsibilities regarding your agreements about the Incoterms?