By Exportacion. gy meraryqc 110R5pR 15, 2011 32 pagos hat’s involved in exporting? A: Understanding and preparing for exports 1. Considering exporting? – If you are considering exporting, you should get yourself up to Speed by understanding why you want to export, what the difference is between domestic marketing and export marketing, What the various environments are that you Will encounter in international trade and the trade barriers you may face in the international marketplace. 2. Current business viability – fyou are not managing to sumive in Your current business, then don’t consider exporting. 3.
E-xport readiness- Besides for having an existing base (i. e. a viable business) to build on, there are several other factors that contribute to your readiness to export. 4. Set a broad export mission statement and initial research bud et for our firm – If ou’re ready to export, then you nee nt indicating that PACE 1 or32 intention to export ( ch r), and you Will also identify a small budg hat o the research and preparation necessa t an export strategy. 5. Confirm managem ports – probably one of the main reasons why firms fail with their export endeavours is because management only pay lip service to the firms’ export fforts.
This is not enough! Get management to commit on paper to the firm’s exports efforts and have them approve the budgetyou submitted for your export research (see Step 4). B: Researching and segmenting export SWipe page markets 1. Undertaking an initial export SWOT analysis of the firm – as it is important to understand What the export capabillties of the firm are, as this knowledge is used as an input to the export marketing research process (see the next step), it is necessary at this point in the export process to undertake an export SWOT analysis.
But as you do not yet have the foreign arket information at Your disposal, this SWOT analysis Will need to be reviewed again later in the export process as an introduction to the export plan. 2. Selecting and researching potential countries/markets abroad – It is a fact; yau cannot export to all the countries in the world.
Indeed, even established companies can only concentrate on two or three countries at most (and usually only those that are close to each other either geographically, culturally or in terms of language or some other factor)_ Smaller companies Will barely be able to cope with one additional country (over and above the domestic market). The question is which country? At this point in the export process your firm must evaluate the many potential countries open to you and narrow the list down to no more than three to five countries with the greatest potential to look at more closely (a shortlist of countries).
Once you established a shortlist of countries, the next Step is to do sorne desk research and in-market research to identify the most suitable country (or perhaps two countries) from your shortlist. In the case of large countries such as the IJS, Germany, the UK, etc. , you may also want to segment the country into more accessibl 2 2 uch as the OS, Germany, the UK, etc. , you may alsa want to segment the country into more accessible segments (such as males under 30, or households with an income of $50 000 or more per annum) that you can focus your marketing efforts on.
The purpose of this research Will be to understand the foreign environment you intend to enter and to identify potential foreign customers and their needs so that you can plan an export marketing strategy that Will meet your potential customers’ needs. Exporting. Notwithstanding all the benefits of exporting, it remains a complicated process that is fraught with risks. It is not a question f simply becoming an exporter from one day to the next. There are many steps involved in becoming an exporter and each of these steps may have several sub components C: Compiling an export plan 1 .
Preparing your export plan- This is one ofthe most important steps in the export process and Will incorporate a situational analysis (export SWOT), your export objectives and an export marketing strategy. D: Implementing the export plan 1 . Obtain financing/resources for Your exports- You Will almost certainly need to finance your export efforts in some way and you Will have to give thought to how much you need and where ou Will find the money.
You may also need to find the staff and facilities necessary to support your export activities (which, in turn, Will cost money). 2. Managingyour export risk- When you negotiate and eventually sign an export contract, you need to be aware that yau are committing Your firm to certain responsibilities ( 32 export contract, you need to be aware thatyou are commtting your firm to certain responsibilities (such as delivering on time and according to a certain standard) and that you are making certain assumptions about your business partner (that they Will pay, for example).
These responsibilities and assumptions epresent a serious risk for your firm and you need to be aware of What these risks are and you need to take steps to manage these risks as best possible. 3. Promoting the firm and its products abroad- This involves letting the world know about your firm and what it offers and there are many promotional channels that you could use (such as advertising in trade magazines, e-mail marketing or participating in a trade fair). The channel you use Will depend on What your promotional strategy is that you outlined in Your export plan. . Negotiating and quoting in export markets- You need to approach Your customers, convince them to buy from you, egotiate a deal and Price that that find acceptable, and present them with a quote (usually in the form of a proforma invoice). 5. Revising your export costings and Price- Following yaur negotiations, you Will in all probability have to consider Iowering your Price or other sales terms. This may require you to revisit Your costing exercise and pnclng strategy. 6. Obtaining the export order- This is all about closing that sale and signing the contract! 7.
Producing the goods- With the export order in hand, you now have to get down to producing the goods that you have promised to deliver. This Will mean securing raw m 32 down to producing the goods that you have promised to deliver. This Will mean securing raw materials and components from your suppliers, and producing, packaging and labelling the goods for export. E: Export transportation and logistics 1. Handling the export logistics- You have to get the product from Your factory to Your customer and you Will need one or other form of transportation to do this. F: Export documentation and payments 1 .
Handling export documentation and export payments- A lot of paper work Will accompany each consignment. You need to ensure that your export documentation is in arder so that you an effect export payment for your goods. 2. Providing follow-up support- Customers Will want to be ensured that you Will help them if something goes wrong with Your product. To this end, you Will need to consider What warranties and guarantees you Will offer your customer, as well as What support you Will provide them. 3. Getting paid- An important part of the export process. G: Export management 1 .
Reviewing the export process- To ensure a successful export department, you Will want to review and improve your export process. 2. Export management- The process does not end here. It needs to start all over again with Your next customer. This is the focus of export management and involves the way you organise your export department. Select the tapic from the list above that you are interested im Under each topic, you Will find a number of other issues that Will help deal with your exports -Expand Your business by exporting Exporting can be a s 2 Will help deal with your exports. Expand your business by exporting Exporting can be a profitable way of expanding your business, spreading Your risks and reducing Your dependence on the local market- Austrade research shows that, on average, exporting companies are more profitable than their non-exporting ounterparts Exporting exposes you to new ideas, management practices, marketing techniques, and ways of competing that you wouldn’t have experienced by staying at home. All this considerably improves your ability to compete in the domestic market as well. By going overseas, you can became more efficient and increase Your productivity.
Exporting companies have better growth prospects, highly skilled, highly productive staff and tend to adapt technology and best practice techniques faster. Even if you have a limited domestic market, you should think about exporting – around a quarter of new exporters are born globals. Global brands can be built from Small local companies – especially in rural and regional area. ThiS section Will guide you step-by-step through exporting: 1 . GEITING READY FOR EXPORT Learn the basics of exporting and get advice on the first steps in preparing your company for export.
First steps in export This guide provides advice on the first steps in preparing your company for export. It deals with learning the basics of exports, how to proceed, and who to contact for help. Learning the basics Successful exporters are adaptable, well-organised and committed to growing their business internationally. Companies hat do well at home can generally e 6 2 that do well at home can generally export. You first need to learn how foreign markets operate and how your company can adapt to this environment. International business also has a language that is somewhat different from domestic sales.
Learning new terms and concepts is essential – but not difficult. There are many people to help you on the export journey. See below for a list of useful export-related websites. What does export mean to my business? Exporting Will provide your company with prospects for growth in profits and competitiveness. The Australian market is open o international forces so if you are successful in Australia there is a good chance your product or service Will meet international competition. Developing a new market anywhere (interstate or overseas) requires an investment of time and resources.
You need to be sure at the start that export Will benefit your company. Any new business strategy requires commitment – and none more so than exporting. You need to have all your staff signed on to the company’s export success. Talk to your banker and accountant early Exporting requires financial resources and the capacity to fund market development. Make sure Your business has the capacity to finance its expansion into export activity_ A basic export strategy Will provide you with an indication of the budget you Will require in the early years when you are building your export business. Who can help me?
Assistance is available from a variety of agencies. Find support services in your state or Find support services in your state or territory Our updated brochures (PDFs) help you access the wealth of servlces and information on trade and investment that are available to businesses in Your location. Attend workshops Workshops for new exporters are an excellent way to learn the asics of exporting. Importantly, they provide yau with exposure to companies like your own – and you can learn from similar experiences. Take your staff to these events tao. Export is not a one-person activity in the company. Everyone needs to be involved.
Check out the competition Check out What Your competitors are doing in export – including your foreign competitors who are also operating in Australia. Do some comparative checks on Your capacity to compete, referencing your experience in the market. Export can help your bottom line – and make you more competitive at home as well. Alternative approaches If you feel you don’t have the resources or expertise to begin exporting in your own right there are other options to get you started: * Use the services of an export merchant who Will be an experienced international trader prepared to buy from you and sell overseas. Sell through an export agent who Will do the overseas marketing for you on a commission or retainer basis. This method exposes you to risks such as non-payment, which Will need to be managed. * Another alternative is to use an export consultant to develop one ortwo markets before handing marketing responsibility back to Your company after a specified period. arkets before handing marketing responsibility back to your company after a specified period. 2. EXPORT STRATEGY An export strategy is an essential component of Your business plan. Find out hovv to implement a successful export strategy.
Developing a sound business plan for export An export strategy is an essential component ofyour business plan. Keep it simple, but make sure everyone in the company involved in achieving export results is aware of the plan and has a sense of engagement with it. Why have an export strategy? Developing a sound export strategy helps you define your export aims and match Your resources to those aims. Your export strategy Will help you manage the market sectors you have identified as core business. Focusing Your resources enables you to provide quality responses and service to your new export customers.
A well-developed export strategy Will help in dealing with a range of service providers. It singles you out as a company that has well-developed, realistic goals and programs designed to achieve them. Incorporating exports in Your business plan An export strategy must be integrated with your companys overall business plan. Align export activities with daily operations and avoid any conflicts between your domestic and international ctivities. Understand the areas where you have a strong competitive advantage. These areas may include your technology, your staff or business systems.
Determine how best to use them to achieve your export goals. Also identifiy any weaknesses. What are the key elements of an export strategy? Bring your key export Also identify any weaknesses. Bring your key export goals into Sharp focus — so you know exactly where to aim your efforts. particular aims could include reducing seasonal demand swings, reducing fixed costs, fully realising production capacity, accessing new technology, onsolidating Your international reputation or matching the performance of your domestic competitors who are already selling offshore.
There are excellent export planning tools available online – see the list ofwebsites below. Use some simple scenarios Assess the outlook for your business in the market. What are the constraints on your export growth? Apply three simple scenarios from Iow growth and intense competition to a high growth situation. Prepare yourselffor a range of marketing contingencies to help assure yourself of Your companys ability to meet varying levels of resource commitment and market demanda It’s not complex The best export strategy is concise and simple.
It involves on- going discipline to assess why your company should export and how you Will achieve your goals. Make sure your objectives are Clear and that all staff involved in export contribute to the strategy. An export strategy needs external review. Your export adviser, bankers, financial advisers and business consultants can provide valuable help. 3. NETWORKING OPPORTUNITIES Learn where to look for networking events, who runs them and how to gain access to them. Establishing and building contacts This guide outlines some techniques for utilising networki
