Engaging in local sales efforts
The Indonesia market is full of rivalry from companies in the neighboring nations such as Japan Singapore, China, and Malaysia. This implies that local intelligence and knowledge is critical to fend of or match the intense competition and this favor a local or regional composition of the sales team. The county and the region in general have different and unique culture that is necessary for the sales people to understand since they will be interacting with different distribution outlets and local consumers (export.gov, 2013). Even though it may be feasible in a number of cases to supply directly to the administration or state-owned entities, local partnerships of agents, domestic offices or distribution agents are regularly important to success of sales projects and development. The social networks and infrastructure are key elements in the Indonesian society. People tend to buy from outlets or distribution chains owned and managed by friends, relatives or acquaintances. Using of foreign citizens to manage distribution will not auger well with the large majority and may keep away potential buyers. The social network, values and norms embrace the support of one another. The local distribution equally has the experience and intelligent of the market and can make entry for the energy drink. Research study by the export office shows that small and medium scale U.S. companies venturing in the Indonesian market enhance their chances of performance by engaging strong local distributors (export.gov, 2013). The U.S. Commercial Service Jakarta helps U.S. companies identify and qualify potential Indonesian representatives (export.gov, 2013). The infrastructure is generally fairly well developed at a rating of 4.2 on a 1-7 scale. Specific areas such as roads, railway, port and energy are at an average score meaning that the direct engagement in direct selling efforts may prove a big challenge. The Indonesian marketing professional and marketing aspects are well developed. The country is rated at about 70 percent in marketing development by the global competitive index 2013. This means that the local sales and marketing team is equal to the task and can manage the distribution, sales and marketing effectively.
Undertaking local manufacturing operations
Although Indonesia publicly embraces foreign direct investment, numerous investors, both local and foreign, face unpredictability in the investment regulations and inconsistent enforcement.…