You are the sales manager of a global corporation that manufactures home furnishing goods and competes in the world market. Your commodities are used in residential homes” in the USA.
Your sales team gains a new market in Johanesburg, South Africa and wants to present a contract to the client selling under EXW, Allentown, Pa. The Competition for your product (same products) is based in Europe, and they have a set up distribution center in South Africa and sell under the Incoterms of Ex Works.
Please explain in detail if:
1. Would you move forward with the new contract with the customer?
2. if you changed the selling term then what selling term that you would try to use in the transaction that would increase your sales, and beat your competition, please list the effects to your organization. Why & Who?