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Transcript
THE FIRST STEPS TO GOING GLOBAL: WHAT YOU NEED TO CONSIDER
Planning properly is the fundamental first step on your journey to export
success.
What are the benefits of taking your business global? Exporters grow sales faster than their nonexporting counterparts, are less likely to go out of business, build their workforce faster and
generally pay their staff considerably more. They also tend to make greater use of technology, which
leads to increased productivity and innovation.
Today’s global marketplace is characterised by instant access to information online and demand for
efficiency and speed, as well as better quality and service. To stand out in a competitive market, you
must be able to differentiate your product, deliver high quality and provide quick and efficient
service. What’s also needed is innovation – new designs and technology and more creativity – and
strong branding, with attractive products, packaging and promotional material.
Before committing to going global, there are seven key questions you should consider:
1. Do you have management commitment to expand globally?
You must set a budget, have dedicated personnel and allocate time commitments.
2. Who are the end-users and why do they need your products/services?
Identify the role the product/service plays for each consumer.
3. What is the basis for your company’s competitive advantage?
It may be price, quality, customer service, features, the brand, product image or technology.
4. What is the most effective distribution channel for your product/services?
It may be selling to agents, distributors, retailers or direct to end-users.
5. What is the role your company plays in the value chain? What are the value-added
activities?
For example, they might be research and development, purchasing, human resources
management, technology, manufacturing, marketing and sales or customer service.
6. Have you conducted an analysis of your industry and its profitability structure?
Things to consider include the bargaining power of buyers and suppliers, the threat of
substitute products or services, the threat of new entrants and rivalry among existing firms.
7. When and how will you know if your international expansion must either be stopped or
scaled back?
You need to reflect on how much investment in terms of time and resources will be allowed
before the company acknowledges it cannot continue its international strategy.
Once you’ve decided to take the plunge, developing an export strategy for your company is
essential. A sound strategy:
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helps you liaise effectively with bankers and government agencies
ensures your domestic and international marketing activities are aligned
helps you to understand your organisation’s strengths and identify weaknesses
allows your team to better understand the company’s growth objectives
enables an understanding of managing change within the organisation.
Preparing an export plan is a fundamental first step in any export strategy; it will assist your
decision-making throughout the entire export process. Key aspects of export planning include
market research, export sales forecasting, product, pricing and communications strategies and
management, distribution (channels and logistics) management, and marketing resources, financial
management and control.
Common mistakes made by would-be exporters include a lack of planning and commitment, a poor
selection of distributors, neglecting their exports if the domestic market booms, the failure to build
relationships, ignorance of cultural issues and the failure to seek expert assistance.
Developing a plan can be challenging but getting it right is critical to your export success. For further
information about how to develop your Export Market Plan, phone 03 8662 5172 or email
[email protected]
A successful exporter is:
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flexible
patient
thinking long-term
culturally-sensitive
able to plan in detail and also think broadly
a good communicator with people skills.
CRITICAL SUCCESS FACTORS
There are two simple reasons why firms are successful in international markets:
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They commit to their export markets
They develop close, long-term relationships with marketing partners