The Internet is an inherently global market, so regardless of a companys intended target market, it may

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The Internet is an inherently global market, so regardless of a company’s intended target market, it may find customers around the world. Seattle-based online retailer of all ski-, snowboard-, wake-, and skate related items, Evo serves customers who live in places as exotic as Bahrain, Turkey, Bali, and beyond. Ultimately, founder Bryce Phillips is happy and successful. For the foreseeable future, however, Evo’s global prospects are limited by territory-specific licensing and distribution agreements with manufacturers. International customers who want to purchase something from Evo cannot complete their transactions online due to complexities, including exchange rates and shipping regulations. Therefore, they must call Evo customer service representatives (CSRs) directly to discuss their order. Although Evo has CSRs staffing the phones for extended hours to accommodate calls from distant time zones, the modest volume of international orders does not justify funding a 24-hour customer service line.

In spite of these challenges, 5 percent of Evo’s business is nondomestic, with Canada accounting for most of this. Canada also represents the biggest potential for expanding global sales because many of Evo’s licensing agreements allow for distribution within North America. British and German citizens place their share of orders, too. Phillips is confident his company will be able to expand its global reach as licensing practices change to reflect the boundary-free world of e-commerce and Evo becomes more established as a global brand.

Everyone who works in customer service at Evo has a collection of stories about interesting and challenging interactions with international customers. For starters, callers often are disappointed to learn they cannot order the particular snowboard they had been dreaming of. Sometimes CSRs are able to fi nd comparable items available in a customer’s region. Language barriers arise as well, but Evo reps usually figure out what customers with limited English language skills are trying to say. In addition, Frenchor Spanish-speaking employees serve as translators when necessary.

It’s unlikely that Evo will need to set up operations abroad because its shipping partners are already everywhere they need to be. Most overseas manufacturers from whom Evo sources products have U.S. offices or representatives, so Evo buyers rarely need to leave Seattle. Even when travel is required, the East Coast is typically the farthest buyers go for big industry trade shows.

The majority of Evo’s international transactions
are relatively seamless, but day-to-day operations can still be affected by global events. “Manufacturers
overseas can impact us,” noted Molly Hawkins, whose playful title is Strategery. “There was a lock at all the ports in China and we couldn’t import any of their products. Therefore, a lot of soft goods like jackets and pants couldn’t be shipped.”

Although the world tends to come to Evo, Phillips wanted to share his favorite global travel destinations with customers. Now evoTRIP offers extreme ski, snowboarding, and surf expeditions to South America, Japan, Indonesia, and Switzerland, with plans to offer future trips to more places. “The reason I get so excited about this concept is that it is near and dear to what all of us value,” said Phillips. “It’s getting out there, learning more about different cultures, doing the activities in different parts of the world, and seeing beautiful locations you’ve never seen before.”

Logistics for evoTRIP are outsourced through JustFares.com, which specializes in international travel. To offer the richest, most authentic cultural experience, evoTRIP always uses local guides. Professional athletes from each country travel with the groups, too, so evoTrippers can experience the culturally specific nuances within seemingly universal sports.

Although evoTRIP focuses on serving up global fun and excitement to participating travelers, Phillips sees every trip as an opportunity for Evo’s “ambassadors” to connect with potential customers in every country they visit. There is no virtual translation, and there are no time zone differences or boundaries.


Discussion Questions

1. Why should Evo avoid setting up operations in other countries if possible?

2. What political and economic challenges could evoTRIP encounter when conducting business in other countries?

3. What cultural differences should Evo and evoTRIP participants pay attention to when traveling abroad?

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Management

ISBN: 9780324595840

9th Edition

Authors: Richard L. Daft

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