|
||||||||||||
|
 |
|
||||||||||
| EXPORT RULES |
|
| CHAPTER 1 |
|
| Developing an Export Strategy |
|
| Determining Your Products' Export Potential |
| There are several ways to evaluate the export potential of your products and services in overseas markets. The most common approach is to examine the success of your products domestically. If your company succeeds at selling in the local market, there is a good chance that it will also be successful in markets abroad, at least those where similar needs and conditions exist. A unique product may have little competition and demand for it might be quite high. |
|
| Your product may have export potential even if there are declining sales in the local market. Sizeable export markets may still exist, especially if the product once did well in your country but is now losing market share to more technically advanced products. Other countries may not need state-of-the-art technology and/or may be unable to afford the most sophisticated and expensive products. |
|
| Developing an Export Plan |
| Once you have decided to sell your products abroad, it is time to develop an
export plan. A crucial first step in planning is to develop broad consensus among key management on the company's goals, objectives, capabilities, and
constraints. In addition, all aspects of an export plan should be agreed upon by the personnel involved in the exporting process, as they will ultimately execute the export plan. The purposes of the export plan are (a) to assemble facts, constraints, and goals and (b) to create an action statement that takes all of these into account. The statement includes specific objectives, it sets forth time schedules for implementation, and it marks milestones so that the degree of success can be measured and help motivate personnel. |
|
|
At least the following ten questions should ultimately be addressed: |
|
1 . Which products are selected for export development? What modifications, if any, must be made to adapt
them for overseas markets? 2 . Which countries are targeted for sales development? 3 . In each country, what is the basic customer profile? What marketing and distribution channels should be used to reach customers? 4 . What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategy will be used to address them? 5 . How will the product's export sale price be determined? 6 . What specific operational steps must be taken and when? 7 . What will be the time frame for implementing each element of the plan? 8 . What personnel and company resources will be dedicated to exporting? 9 . What will be the cost in time and money for each element? 10 . How will results be evaluated and used to modify the plan? |
|
| From the start, the plan should be viewed and written as a management tool, not as a static document.
Objectives in the plan should be compared with actual results to measure the success of different strategies. The company should not
hesitate to modify the plan and make it more specific as new information and experience are gained. A detailed plan is recommended for companies that intend to export directly. Companies choosing indirect export methods may require much simpler plans. |
|
|
|
 |