Class 02 - How to export? Strategy Adjustment

Class 02 - How to export? Strategy Adjustment

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In your export project, as an entrepreneur (small or large), you must adapt your business strategy. Your approach to attacking the local market is not necessarily the correct one for the global competition you enter when you export. First of all, you must be very clear about the reasons why you will export.

What are the reasons why you want to export?

Your strategy can involve one or more of the following points. The following are more of a guide than a recipe. But they are very frequent reasons.

1.Diversify your portfolio of products and target markets.

2.Search for alliances with suppliers and producers at a lower cost .

3.Reduce the impact of crisis on the local economy.

4.Achieve economies of scale, reducing costs by producing more.

5.Start a new life cycle with products that matured locally.

6.Attempt to balance against competitors that already export.

7.Your local market may be saturated and you want new markets.

Dont improvise How to diagnose the state of my company?

If you already have your strategy and motivations clear To undertake the export effort, it is important that you analyze the real situation of your company and what your performance potential is in the face of export demands (production volume, investment risk, etc.). Analyze your financial, administrative, production and quality situation.

Financial Analysis:You must study the costs of the project and its profitability. In addition, all sources of financing (banks, capital contribution from partners, etc.)

Product Analysis:Measures the current production capacity. International demand for products may exceed your current productive capacity.

It is necessary to analyze the characteristics of the type of product that you will export. In the international market, it is very common for products to adapt to the dominant global culture, what works in the local market may not be what the international market demands.

Investigate technical requirements such as packaging, labels, etc. that apply to your specific product type.

The language in which all printed material for your product should go is another important consideration.

Target Market Analysis:You have to know the taste and what your market prefers.

Find out about the paperwork, documents and entry process for a certain market. Evaluate tariffs, barriers, etc. Each destination has its own regulations.

The means of payment at the international level must be known and mastered.

Intellectual Property:You must register your trademarks and intellectual properties, to Avoid plagiarism of your brand before entering the market.

Logistics and Costs:It is vitally important that you know the logistics (freight, rates, transit time), all this represents a important cost and a determining factor in your ability to react to an increase in demand. For example, the time from when you send a product, until it leaves customs in the country of interest, is a factor that affects the volume of your shipments to prevent your customers inventories from running out.

 

 

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