Transportation is a crucial factor of production that impacts and determines considerably the final prices of commodities. Therefore, choosing an efficient and effective mode of transportation for given commodities is very vital. Considering that the final price of commodities should be fair and customer friendly, the need to adopt the cheapest yet effective mode of transportation arises. For Caster Guitars Company, the transportation of guitars from Mexico could be efficiently done using road transportation. The fact that there exists good and established infrastructure in Mexico makes this process better. Further, the general mode of road transportation is cheaper. Considering that the size and weight of the guitars is not bulky, the use of trucks would be very efficient.
In a situation where the manufacturing plant of the Caster Guitar Company is situated in Asia, the most effective mode of transportation of the finished goods would be the use of water. Water transportation is relatively cheap especially when large distances are involved. The big geographical difference of Asia and North America would therefore be effectively linked with water transportation with a probability of including road transportation once the goods are in the United States.
Caster Guitar Company is likely to face various marketing and economic forces.
The firm therefore needs to put into consideration numerous factors that may impact on their end profitability. Global factors, for instance should be key in the planning strategies of the company. For example, the tax imposition on the manufactured guitars by the respective governments where the plants are situated. The company should put into consideration the rates required to be paid since they are useful in determining the final price of the guitars. Technological factors such as the technology used in the production of the guitars should also be considered. The technology used directly affects not only the price but also the quality of the guitars. Social cultural factors will definitely be of importance to the Caster firm. Since there exists different people both culturally and physically in the countries involved, it is inevitable that wants and expectations will be different. Therefore, in the marketing strategies of the Caster firm, it is vital that the company clearly understand the culture and social expectations of the countries in question. Further, competition for the guitar company will be faced. These may be from local or international based companies especially based in Mexico and Asia. Most importantly though in consideration are economic factors. The fact that profit realization is the key goal of the company therefore implies that economic factors, such as currency changes are positively in line with the goals of the firm.
All these factors carefully considered and effectively worked on will ensure that Castor Guitar Company makes the necessary sales and subsequently the required profits in the international market.
