Developing an export strategy begins with three simple questions:
- Which market do you want to enter?
- When do you want to enter the market?
- What is the scale of entry you want to make into that market?
There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market, while in another you may need to set up a joint venture, and in yet another you may decide to license your manufacturing. There will be a number of factors that will influence your choice of strategy, including, but not limited to, tariff rates, the degree of adaptation of your product required, marketing and transportation costs. While these factors may well increase your costs, it is expected the increase in sales will offset these costs. The following strategies are the main entry options open to you.
There is perhaps no other strategic asset more important to a company than its intellectual property and protecting it is vitally important to the future success of a company.
The basic principle of the marketing mix is the relationship between price, promotion, product and place (distribution). Each of these four areas must complement each other. In international markets there may be factors that are outside your control that will impact on your preferred marketing mix and you will need to take these into account when choosing a market(s).
Summary of the key points that you have learned in the ‘Developing Your Export Strategy’ section.
Next: Developing Your Strategy