Patton Case Study

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The City College of New York, CUNY *

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306

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Business

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Nov 24, 2024

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docx

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1 Manufacturing International Success Student’s Name University Course Professor’s Name Date

2 Patton Electricals Bobby Patton and his brother started an electronic manufacturing company, Patton Electricals, in 1984 as students at the University of Maryland. The company began by selling small electronic widgets, which have grown to an array of products in the IT business. The firm sought to increase its market share by exporting to other countries. The initiative faced numerous challenges, including finding reliable buyers, credit for expansion, offering clients better terms, procurement rules in target countries, and a lack of knowledge of the dynamics of these markets. To overcome these challenges, Patton applied knowledge gained through trading with different ethnic groups to improve how to engage distinguished customers. Information and finances gained from U.S affiliated agencies played a significant role in realizing the company's goal of making it in the global market. The challenges and ways to overcome them provided Patton Electricals with tremendous lessons that aid in alleviating the hurdles that export businesses face. Major Challenges Patton Electricals faced several challenges in its endeavour to export its goods. One of the major challenges was finding reliable buyers for its products. A large percentage of clients for the company's products comprises foreign governments. Therefore, the company needed great marketing skills to convince clients to purchase their products. The company was young, so it faced stiff competition from other established companies in the target countries. The increased market share meant increased production to ensure the supply met the required quantity. The duty to meet market demand caused another challenge for sources of credit to expand production. Besides, the company necessary financial security to offer better terms to customers, which would help overcome competition. Selling to foreign countries also posed a challenge in understanding the procurement rules and the fairness of their application. Different target

3 countries have distinguished regulations on imports and tariffs. The company had modest knowledge of the practices and how to adhere to the requirements of each selected country. Overcoming Challenges Patton Electricals initiated specific strategies to alleviate these challenges and secure its success in international trade. The company engaged agencies that finance global receivables to overcome the credit challenge for expanding production. The Export-Import Bank of the United States (Ex-Im Bank) played a significant role in enabling the company to increase production to meet market demand. Domestic banks are sceptical about collecting payments from receivables that they are unfamiliar with. Through its packages, Ex-Im Bank provides stability to exporting firms through loans to conduct business. Procurement rules and fairness of their application were a major challenge. The U.S. Department of Commerce was forthcoming when the country was trying to enter new markets. The department helps companies open offices in new markets by providing effective strategies and knowledge on trade rules in the target country. The company also had problems acquiring reliable buyers for their products. Patton utilized direct mail campaigns and customer service from website inquiries to build on the customer base. He also travelled abroad to meet contacts to conduct business and make calls from acquired contacts. Working with U.S. ambassadors in target countries also helped to mitigate losses from fraudulent clients. Working with the U.S. embassy helped ensure the company alleviated con artists and closed deals with clients that seemed off. Lessons Learned Exporting to different countries provides incredible knowledge that helps ensure Patton Electricals stays in the realm of success. Persistence planning ensures the company maintains resale channels and expands its market share. It is important to hire sales and technical support

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4 employees who understand the local language to enable realizing the market objective of efficiently communicating with customers. Patton identifies the fear of daring abroad as a major issue that keeps firms from entering new markets. Understanding the clients' culture in the target country plays a significant role in alleviating that fear. Brand recognition is essential for companies that dare to enter new markets in different countries. It provides a competitive advantage to ensure a firm realizes its goals in the target country. Conclusion Patton Electricals has faced challenges in its endeavour to enter new markets abroad. The company is strategic in its undertakings to overcome these challenges. It engages U.S.-affiliated agencies such as Ex-Im Bank, the U.S. Department of Commerce, and U.S. ambassadors to conduct business efficiently abroad. Persistent planning and understanding of the culture of the client's target country are eminent in ensuring success in new markets. It is important to hire staff that can effectively communicate with clients in their local language to ensure the company has sales and technical support capabilities. The lessons are crucial for IT businesses that want to conduct business abroad.

5 References Barry. (2015). In Basic guide to exporting (11th ed.) . essay, US Dept of Commerce.

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