Marketing report Essay Example | Topics and Well Written Essays - 1000 words

Marketing report - Essay Example In this kind of distributorship arrangement, the company cannot be an importer nor act as a commercial agent unless it is 100% Egyptian owned and managed. Second option is the Limited Liability Company wherein company has no limit on the percentage of ownership, provided that there is at least one or more Egyptian managers in the company, there are at least two shareholders or partners in the company and the capital should not be less than $9,000. Again, in this set up, the company cannot be an importer nor act as a commercial agent. Third option is a joint stock company that requires 49% of shares of stocks to be offered to Egyptians upon formation. Eventually, foreign stockholders may own 100% of the company provided majority of the board of directors is Egyptians and capitalization should not be lower than LE 250,000, with at least three Egyptian shareholders. Again, this type of distributorship may not import or act as commercial agent unless it is 100% Egyptian owned and managed . Another alternative is for foreign firms to register and sell direct to Egyptian consumers. They can do this by establishing their own subsidiary in Egypt or put up its own manufacturing assembly operation in Egypt. Foreign firms can use free zones areas or bonded warehouses to store goods and hire their own employees to sell their own goods. Foreign firms can also rely on Egyptian companies for wholesale and retail distribution who are specialized on wholesale and retail distribution. Besides, according to USCS (March 2011) Egyptian commercial agents are required for foreign firms to bid on most government tenders. Statistics from USCS provides the following data: As of 2007, there are 5,800 registered importers in Egypt, 9,600 exporters, 4,330 commercial agents representing 106,200 firms and 4,250 factories licensed to import components. Most of these firms are privately owned, but the government sector includes some 279 separate companies affiliated with 16 holding companies; n early 30 military factories that also make civilian products; and 1,500 companies owned by one of the 26 provincial authorities. Â   Trade Guide for Egypt considers U.S., Germany, UK, France and Italy as main suppliers. An important regulation that pertains to export regulations for foodstuffs is the quality inspection upon entrance to Egypt. Packaged items must be labeled in Arabic and should contain the name of the product, its trademark, its bran name, the product’s technical data and mode of operation, international marks and information that should be observed during transportation and handling, country of origin, production and expiry dates and manufacturer’s name. Exporters should also observe the international shipping and handling symbols, but should specify any special handling instructions in English and in Arabic. One channel of distribution that is getting to be popular in the internet is the B2B websites. B2B is the exchange of products and services or i nformation between business rather than business to consumers. Growth of B2B is estimated to be worth $7.29 trillion dollars in 2004 (Jones, Paula, 2000). Retailers and businesses in Egypt has its own B2B websites wherein business can view offers to buy, post offer to sell, view company directories, request shipping quotations and other details for trading business (Tradenetwork.com). B2B transactions have made trade faster and a reliable means of distribution. 2.