Cattle Supply Inc. is a market leader in dairy farming equipment, which is typically large, bulky, and very heavy. In order to compete, Cattle Supply sells its products at very low prices. Although these products can be produced anywhere, the company is considering exporting as a way to grow in overseas markets. The viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a

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01-03-2022
Business

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Cattle Supply Inc. is a market leader in dairy farming equipment, which is typically large, bulky, and very heavy. In order to compete, Cattle Supply sells its products at very low prices. Although these products can be produced anywhere, the company is considering exporting as a way to grow in overseas markets. The viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a

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anthougo anthougo · Answer 1 · 2022-03-14T10:27:25+01:00

The viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a low value-to-weight ratio.

What is the meaning of a low value-to-weight ratio?

A low value-to-weight ratio is the comparison of the monetary value of an item versus its weight.

For example, before Cattle Supply Inc. can successfully adopt an exporting strategy, it must consider that its dairy farming equipment has low monetary value when compared with the weight, especially in transportation costs.

Though exporting should offer Cattle Supply Inc. the prospect of new markets, improved sales and profits, and a greater customer spread, it should not export when its product has a low-value-to-weight ratio.

Thus, the viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a low value-to-weight ratio.

Learn more about exporting strategies at https://brainly.com/question/26783042