How to Design An Export Strategy
Designing an export strategy involves the following steps:
Assess the company’s export potential by examining its opportunities and resources. It would not be smart to commit to exporting if the company does not have the production capacity to deliver the product.
Obtain expert counseling on exporting. Most governments provide assistance for their domestic companies, although the extent of commitment varies by country. For U. S. companies, the best place to start is with the nearest International Trade Administration (ITA) office. Such assistance is invaluable in helping an exporter get started. Other government agencies also assist exporter. As a company’s export plan increases in scope, it probably will want to secure specialized assistance from banks, lawyers, freight forwarders, export management companies, export trading companies, and others.
Select a market or markets. This key part of the export strategy may be done passively or actively. In the former case, the company learns of markets by responding to requests from abroad that result from trade shows, advertisements, or articles in trade publications.
A company also can determine the markets to which products like its own are currently being exported.For example,U. S.Census Trade Statistics identifies the markets for different classifications of exports, and the National Trade Data Bank (NTDB) provides specific industry reports for different countries.The NTDB is updated monthly, so potential exporters can get the most recent studies.
Regardless of how the company obtains market information, it is important that it pick a market or markets in which to concentrate a push strategy.
Because national markets differ, the company should focus on a few key markets rather than try to develop global expertise all at once. Often, the initial markets are geographically close to the company’s home country or are in countries that closely resemble the home country culturally. For both of these reasons, Canada and the United Kingdom are important to U. S. exporters.
Once the primary, secondary, and tertiary markets have been determined, the company needs to research each to determine their major economic trends.
Formulate an export strategy. This step usually involves considering the following factors: the company’s export objectives,both immediate and long term; specific tactics the company will use;a schedule of activities and deadlines that will help the company achieve its objectives;and the allocation of resources to accomplish the different activities. Determine how to get the goods to market.
It is important that a company organize its exporting efforts. The following table provides a sample business plan a company can use to establish a specific export strategy. It requires the company to understand its expertise in export procedures as well as to gauge the availability of corporate resources to support exporting.he true MNE usually utilizes most of the operating forms discussed so far. However, it can be difficult to determine whether a company takes this global approach, so narrower definitions of the term multinational enterprise have emerged. For example, some say a company, to qualify as an MNE, must have production facilities in some minimum number of countries or be of a certain size. Under this definition, an MNE usually would have to be a giant company.
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