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Localization
& Local Industry Vision (continue)
Local imitations of the BUV may
materialize within a year. As the quality increases and
prices fall (due to more local content), the locally
produced BUV will gain market share. Initially, the
imitation BUV will continue to source key parts such as
the engine, brakes, and torque converter from the kit
supplier. In time, the local producers will optimize the
design for local application (i.e. expanding the cargo
bed). The current cargo area is minimized to reduce
vehicle size and weight…thus reducing international
freight costs. As local companies prosper, the BUV kit producers will gradually focus on the
needs of other countries and the whole process
repeats itself.
In some countries, the local BUV
industry will take longer to get organized. In these
markets, the initial market makers will enjoy many years
of profitable business.
Sales and Service Model
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every assembler is also a dealer
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consumer can purchase BUVs right
off of the assembly line
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factory is directly accountable to
customer (plant must service and warrant the
product)
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customer contact increases and
generates more feedback for improvements
Long-Term Localization
Overseas Distributor Example
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A local distributor imports the BUV kits.
Adept at
expediting goods through the import process, the
distributor receives a set fee per container.
Another company buys the kits from the distributor as
a local purchase. This company assembles and
sell BUVs for profit. It purchases and
imports the BUV kits and trains native employees to
start offices in other villages. Note that
this company no longer deals
with international business and customs.
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