Dumping of products

Dumping of products referrers to offering consumers in the foreign market products at a lower price compared to that in the domestic market. The price at which such products are offered is normally viewed as lower than the fair competitive price. The World Trade Organization is strongly against dumping if it incapacitates the domestic industry and results to unfair competition. Though the WTO does not prohibit dumping, countries have set up laws that ensure that dumping is totally prohibited in a bid to ensure that fair business is promoted. Other than such laws, there are other factors in the free market that ensures dumping of products is controlled.
Such factors include the presence of already established organizations that ensure consumers do not dodge the local industry for other products. Though at times consumers appreciate products offered at a price that favors their economic position, there are those aspects of the free market that ensures dumped products to not survive in the market for long. Such factors ensure that products offered in the local market are able to compete favorably with those offered at a low price. This has extremely limited the success of dumped goods from lesser developed countries. This study is going to examine how such factors deter dumping of goods by lesser developed countries.
Brand familiarity
Most businesses have a name that they use in the market place. Be it a large multinational company or that small sole proprietorship. However, what matters in the modern world is not the business name but what is referred to as a brand. This is a quality that remarkably few businesses can boast of. Developing a brand is the ability to create a long lasting positive attitude about a company, its services and products on the mind of consumers. This is an aspect that consumers use to establish quality, personality and origin of products manufactured by a certain company. Those companies that have a positive brand name enjoy certain privileges that ensure they maintain a positive competitive position in the market. This is because consumers are less likely to forget about the business and products that it offers. The presence of companies with strong brands has made it hard for `dumped` products to succeed.
This is mainly because consumers find it hard to shift from the company that they are identified with to go to another. Even though the price of dumped products from lesser developed countries is lower compared to the standard market price, companies ensure that the company name and logo remains in the minds of consumers an aspect that plays a critical role when it comes to instilling loyalty. When consumers are loyal and trust a given brand, they can easily access a service or product from the company even if the latter have never done so in the previous days. Therefore, the presence of a strong brand name does not only ensure that dumped products from lesser developing countries do not succeed in offering new products but also when it comes to offering new products. This is because of the presence of companies with strong brand names that have won consumer loyalty and trust.
On the other hand, modern day organizations have the ability to create a perception in the mind of consumers that the goods delivered are of high quality and at the same time the company is large. This is done through channeling adequate resources towards product and organization marketing. Though certain organizations do not have the financial muscle to carry out extremely marketing campaigns, the usage of proper marketing channels ensure that they succeed in creating a strong brand name. These companies do this without considering the issue of product price. This is because, once consumers have the right attitude towards the business and the type of products that it offers price will be a remarkably minor aspect in making a purchase choice. Therefore, though `dumped` products are cheap, those organizations that bring them in the market do not have a strong brand and consumers do not trust the products.
The quality of a product plays a remarkably critical role when it comes to attracting consumers. However, for those companies that have different types of products, they prefer associating quality with their brand name such that consumers always believe that products manufactured by the company are of high quality. A company with a strong brand name ensures that consumers and other parties develop a positive attitude towards the products that they offer. Therefore, a strong brand name is usually associated by high quality products. This makes it hard for other products no matter how cheap to come in and occupy the market position already occupied by the product forma company with a strong brand name. This prohibits dumping from lesser developed countries because such products are not able to attain the quality standards that consumers have given to products by companies in the domestic market.
Brand image extremely prohibits dumping of goods by lesser developed countries because consumers always perceive branded products as of higher quality compared to those that are not branded. This means that dumped goods will always be viewed as low quality commodities compared to those from companies with strong brand names. On the other hand, consumers experience a long spell of quality from certain brands. This helps in developing consumer loyalty and ensures that consumers always rely on products from companies from strong brand names. On the other hand, a strong brand name creates a positive image when it comes to business experience and reliability. This is a scenario where consumers believe that the business has been in existence for long and has become well known to consumers. Consumers believe that such a company manufactures its products out of experience an aspect that instills reliability and quality. The fact that dumped goods from lesser developed countries are not associated with a particular strong brand name makes it hard for them to compete with products from companies with a strong brand name. This prohibits strongly prohibits dumping of products.
Products
Products and services are a remarkably crucial part of the market. Without the two, no exchange will take place between businesses and consumers. In one service or product line, you might find several companies that offer the service or product. These businesses target the same consumer group and expect to make profits out of their trade. However, there are multiple aspects that determine whether or not an entity will be successful in the given product line. One of the most crucial factors is product quality. Some companies offer high quality products than others. This makes consumers get more attracted to products from this company instead of others that offer the same product. On the other hand, some markets have those businesses that have already developed a positive connection between consumers and their products. This means that, consumers feel connected to the business through the product or service being offered by the business.
When it comes to dumping of products by lesser developed countries, it is hard for such products to survive in the market. This is because, the products being offered in the current market is of high quality compared to that coming in from the outside market at a low price. This is because, the company brining in the product cannot be able to develop high quality products as those in the market and sell them at a low price. This means that the business will be operating at a loss and therefore no need to keep on doing businesses. Though such products are brought in at a lower price, they are not able to match those products that are already established in the market. This has extremely limited the success of those countries that try to dump products into other markets since their product quality does not meet the requirement s of consumers.
Another issue about products that has made it hard for lesser developed countries to dump products in other countries is the fact that companies have identified themselves with consumers by developing products that suit them. This is through developing products while looking at aspects such as cultural preferences and consumer convenience. Though `dumped` products are cheap, they are not able to find the connection with consumers as those that have been developed by domestic companies. This is because, such companies have a close connection to consumers and they are able to respond positively to consumer service and product needs with much ease. The main difference between the established expensive and cheap dumped products when it comes to consumer attitude is that the consumer will always feel that he/she has acquired something that will satisfy the desire at hand regardless of the price.
It is always crucial for consumers to have adequate information about a given product before they purchase it. In most cases, consumers prefer acquiring a product that they have adequate information about than that which they know nothing of. Difference in consumer knowledge about a particular product always comes in as a result of the marketing technique applied by a company. Those companies that have already established themselves in the market work towards ensuring that consumers have adequate information about products that they offer. This plays a critical role towards ensuring that consumers always access their products. When a consumer compares products of the same kind, he/she always develops that attitude that certain products are cheap simply because of their quality. Therefore, it is crucial for a business to ensure that consumers have enough information about a product so as to develop the right attitude towards the product.
It is remarkably hard for consumers to have enough information on dumped goods. This is because, most of them are in the country illegally or the manufacturer does not have enough information on the market to develop the right marketing campaign for the product. At times, it is crucial to involve consumers in the marketing process to ensure that the manufacturer determines what needs to be done with regard to promoting the product in order to improve its competitive advantage. However, lack of adequate communication between manufacturers from lesser developed countries and their target market overseas makes it hard to make it in business. This is because consumers have enough information about other products and at the same time, domestic manufacturers have enough information when it comes to consumer needs. This is an aspect that makes them develop products specifically according to consumer wants. Dumped products from lesser developed countries lack this advantage something that jeopardizes their competitive position with products from already established companies in the international market. This extremely limits the success of dumped products from lesser developed countries in the international market.
Innovation
There are many aspects that accompany product and service delivery, one of them is the need to deliver a product to the customer in the most convenient manner. In developed markets, companies work hard towards ensuring that their product and service delivery mechanisms are exemplary and ensure that consumers get the products in time. One way to ensure this has been by constantly improving these mechanisms through coming up with new ways of doing so using available resources and knowledge to ensure that consumers do not strain when accessing a service or purchasing a product. Innovation has become a remarkably crucial and dynamic aspect of modern organizations due to technology and competition from other firms. This has made product and service delivery remarkably efficient and aspect that please consumers. Therefore, when a new product is introduced in the market, its developers have to keep up with such trends when it comes to innovation.
However, this is a hard task for lesser developed countries when they try to dump products into other countries. This is because such companies do not have the technological muscle to deal with the rate of innovation. This is because innovation is not just about having the idea but putting such ideas to practice using the right technology and human resources. This makes it hard for such products to compete with already established products in the market. On the other hand, `dumped` products are not appreciated by the governments. This is an aspect that makes it hard for such products to effectively position themselves in the distribution channels. This makes it hard to determine what changes need to be made or make discoveries on how consumers would like such products to be delivered. Therefore, it becomes an exact science that already established products in the market will succeed not those that are `dumped` due to their low prices.
On the other hand, being close to consumers is remarkably crucial when it comes to the issue of innovation. This is because the company is expected to raise revenue from the consumer group and not any other stakeholders. Being close to consumers makes it easier for a business to determine the necessary changes that need to be done. This is the part where the company is able to come up with relevant innovations since they know where the product or service is weak and what type of improvement needs to be done. However, developing the product elsewhere with different techniques and taking it to the international market gives remarkably little room for improvement. This makes it hard for `dumped` products from lesser developed countries to succeed in the international market. Innovation is remarkably critical when it comes to improving the product quality and delivery channels in line with prevailing circumstances and consumer needs. On the other hand, most less developed countries do not have the technological muscle to compete with developed countries in the international market. This means that their mode of product delivery and innovation channels will be more strained compared to those of already established companies in the international market.
Consumer demand
Consumer demand is very crucial in the business environment. However, different businesses are able to address consumer needs different. What plays a major role when it comes to this is the effort that executives have put in to see to it that managers, products, employees and services are able to address consumer needs to the fullest. Companies that have managed to establish themselves in a given market are able to adequately address consumer needs in many ways. The first way is through ensuring that the company has gathered enough information about the consumer group, their preferences and their cultural beliefs. This is the point where the business has to understand that there are different types of consumer demands. There is the type of demand where consumers would like to access goods and services in extremely quantities while there is that type of demand where consumers would like the products to be presented in a specific manner.
There is a great difference between a company that just brings in products into the market and that company that has been close to consumers and has information about consumer needs. That company that jus comes in will not have enough information when it comes to determining consumer needs or developing the right consumer needs. This is the case with those products that are just dumped in from lesser developed countries. Though such products come in with a lower price, they fail to make a mark in the market because they are not developed or presented according to demand. Such that, the products are not presented in line with the level of demand in the market or products are not presented according to consumer preferences. In the end, through they are cheap they fail to make a mark in the market.
Therefore, this concept prohibits dumping by lesser developed countries due to the inability to ensure that such products succeed in the international market. It is also vital for organizations to carry out adequate studies about consumer demand before they present a certain product in the market. However, products dumped in the market from lesser developed countries are never subjected to adequate research to establish whether or not the product fits consumer demands. On the other hand, research and development involves channeling a lot of resources that the company expects to recover through the sale of such products. Since the products are availed to consumers at a low price, the sale of such products is not able to recover the costs that the company has incurred when it comes to market and consumer demand research and distributing the product. This extremely discourages dumping since the company does not get to get the intended returns. It is vital to understand the fact that consumers are the only source of revenue for a business, if a company does not get the market trends and consumer needs right it is remarkably likely that the business will fail due to poor financial performance. This extremely discourages dumping of products because such products are always likely to get wrong consumer needs due to inadequate understanding of the market.
Conclusion
Despite the fact that governments have set up rules to ensure that dumping of goods by lesser developed countries or any other group of countries does not occur, the rules of engagement in the free market are doing a nice job in ensuring that such products do not succeed in the market hence discouraging dumping. One of the factors that were analyzed is the product itself. There are many aspects about a given product that either makes it acceptable or unacceptable by consumers. One of the factors is whether or not the product has been developed according to consumer needs. Most dumped products do not adequately address consumer needs an aspect that makes them less competitive in the international market. On the other hand, consumers may have remarkably little information about such products. This is an aspect that discourages them from purchasing such goods.
Other than just the product, the mode of delivery also plays a critical role in determining whether or not consumers will appreciate a certain product. When a product is not delivered in such a manner that is convenient to consumers it is remarkably likely such a product will not succeed in the market no matter the price. This is because the market is always changing and companies keep coming up with ways of making sure consumer enjoy high quality products at all times. Those companies that dump products stand a remarkably minimum chance to effectively understand the distribution channels due to the fact that they have remarkably minimal market presence. On the other hand, lesser developed countries have not hit the technological heights attained by developed countries an aspect that makes it difficult such entities to compete in the field of innovation. Therefore, established companies in the international market always ensure that complementary activities such as product delivery among others are well organized in a manner convenient to consumers.
Brand identity also plays an crucial role when it comes to prohibiting dumping of goods from lesser developed countries. This is because, companies fight to ensure that they develop a strong brand name that builds a positive image in the mind of consumers about the company. This ensures that the company is always in a better competitive position than those organizations that do not own a strong brand name or no brand at all. The fact that dumped goods are not associated with a given brand name, they fail to succeed in the international market due to the presence of products from companies with a strong brand name. On the other hand, such companies understand consumer demands with regard to quantity and product specifications. This is an aspect that gives them a chance to developed goods in line with consumer needs. This reduces the chances of success for `dumped` goods from lesser developed countries in the international market.
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