International Market - Where to establish our company?

International Market

Where to establish our company?

United States is our main market

According to Forbes magazine, the country the United States is the largest consumer of tequila worldwide, with a volume of 120,073,376.07 liters because 200,000 margaritas consumed per hour. Consumption of category 100 percent agave is 26 percent, and the remaining 74, the tequila category. In 2012 it exported 57.2 million liters of category 100 percent, and 99.5 million liters the tequila category; total 156.8 million liters with an alcohol percentage by volume of 40 percent.

Tequila consumption increases more and more in the United States, which has made sales recorded the highest growth among the leading spirits in this country, according to the Distilled Spirits Council of the United States (DISCUS). In the past 12 years, tequila has gone from being consumed almost exclusively by the Mexican community in the United States such a popular drink that has displaced gin sales approaching enjoying the taste of rum in this country.

Tequila imports have increased 92 percent since 2002, meaning that the average annual growth was 5.6 percent, according to DISCUS. Last year were sold in this country of 13.8 million boxes of distillate, with an average of nine bottles of a liter, which the United States endorsed its place as the largest consumer market for tequila in the world, beating Mexico.

The tequila industry has not only placed the drink tequila as number one among Mexican consumers, but thanks to his organization has achieved international respect and is now served at the best tables in the world.

The cradle of this ancient drink is Jalisco although the agave-tequila production chain has a Designation of Origin (DOT) also it covers six municipalities of Guanajuato, eight of Nayarit, Michoacan 30 and 11 of Tamaulipas. Currently, tequila has become the identity of this country abroad and is by far the most popular beverage among Mexicans, said in an interview the director of the Tequila Regulatory Council

Market strategies in the United States. Consider:

 Changes in manufacturing costs.

The differences in wages, labor productivity, inflation rates, energy costs, tax rates and other similar factors cause significant variations in manufacturing costs between countries. Frequently, in some countries the plants have advantages in manufacturing costs due to their lower consumption costs (especially labor) or its unique natural resources. In such cases, the low cost countries become the main production sites, and most of the production is exported to markets located elsewhere in the world. Usually, companies that have facilities in these places (or their products come from contracts with manufacturers of these countries) have a competitive advantage over those that do not have them.

Fluctuating exchange rates.

         The volatility of exchange rates greatly complicates the issue as to preserve benefits. Exchange rates can fluctuate between 20% and 40% annually. Changes of this magnitude can completely clear the advantage of low cost of transforming a country or a location in a high-cost competitive cost. A stronger US dollar makes it more attractive for US companies manufacturing in other countries.

Trade policies of the host government.

National governments have approved mole type of measures that affect international trade and the operation of foreign companies in their markets. Host governments may impose duties and contributions establish local content requirements in manufacturing goods as companies with foreign headquarters within its borders and regulate prices of imported goods. In addition, companies may face a web of regulations regarding technical standards, product certification, approval of capital investment projects, withdrawal of a country and a minority ownership (sometimes majority) by nationals. Some governments also provide subsidies and low-interest loans to nations to help them compete against companies with foreign-based companies. Other governments, eager for new plants and jobs, offer subsidies, privileged access to markets and technical assistance to foreign companies.

Multinational competition against global competition

There are significant differences in patterns of international competition between industries. At one extreme, the competition can be called multinational that made within a country; competition in each national market is essentially independent of competition in other markets. For example, there is a banking industry in France, one in Brazil and another in Japan, but the competitive conditions of the banks differ significantly in the three countries. Moreover, reputation, customer base and competitive position of a bank in a nation have little or no relationship to their ability to compete successfully in another. A company can compete internationally, but the power of a nation strategy and the competitive advantage it possesses are confined to that country and not spread to other countries where it works. With multiple competition in the country there is no "international market", but a group of self-sufficient country markets. Industries characterized by multiple competition in the country include many types of products (coffee, cereals, canned foods, and frozen foods), many types of retail, beer, and life insurance, clothing and metal fabrication.

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