Export strategy is one of the main and essential parts of a solid and reliable business plan. The design of this strategy should be simple and understandable for the public. In this way, we can be sure that all our employees in our trading company can participate in reaching the final export goals and are aware of its details.
Importance of Export Strategy
1. Proper Targeting
Formulating and designing the export strategy gives us the opportunity to express and examine in detail the goals we have in mind for export.
2. Better Organization of Resources
It helps us to respond best to new customers by focusing on the resources at our disposal.
3. Better Interaction
The export strategy also helps us to communicate and interact fruitfully with service providers.
4. Make a Distinction
Having a strategy makes us a business that is more successful than other competitors and peers by having predetermined and realistic goals and plans.
Export in the Business Plan
If we intend to export in addition to our commercial and business goals, we should include our export goals in our business plan. Our export strategies must be in line with our business plan. In this case, there will be no interference between domestic and international activities.
For this purpose, we should choose areas of business in which we are more capable and have a competitive advantage. Get help from the strengths to reach the export goals. At the same time, identifying weaknesses should not be neglected.
Export and Export Strategy
Entering cross-border markets, connecting with foreign markets and the demand of such markets for domestic goods is called export. Export strategies allow domestic markets to strive for the growth of domestic production by using the capabilities provided by global markets. It also provides the possibility of getting rid of the limitations of domestic markets and production in wider dimensions.
The type of strategy that each domestic market uses to be present in the international and global markets is directly affected by the performance and export activities of the company. Our chosen strategy allows us to use the capabilities and resources we have in the international market in a good way. The debatable point in this regard is that the export strategy is mostly used by small businesses or businesses that do not consider long-term presence in global markets safe. On the opposite point, there are large companies that directly make foreign investments and are looking for a long-term presence in global markets.
For this reason, it is said that the choice of this strategy is directly affected by the performance of the company and has an impact on it.
The Scope of the Export Strategy
Formulation of export strategy should be based on evaluating our current situation and examining promising business conditions. When setting it up, we must check the terms of access to new customers, our financial resources, and our legal and tax issues.
1. Reason for Export
In order to have a suitable strategy, we must clearly understand our reasons for entering the export field. Some of the reasons can be as follows:
We are looking for turnover.
We are looking to enter new markets.
The expectation and demand of our customers is our entry into the international arena.
We are looking to increase the life cycle of the product.
2. Investigating Risky Situations
The risks that we may face in the field of export are as follows:
Differences in Business Activities
Long Product Delivery Time
Forced to Renew the Contract
3. Export Focus
Before starting the export, we should check which products and in which country we are aiming to export. Examining the countries and products suitable for export will bring us the best performance in export. Starting business with countries that have a different business culture than ours cannot guarantee our success as a first step.
4. Determining the Budget
Specify the financial goals and budget that we have considered for export. This reduces the risk of additional costs and financial failures.
5. Strategy Management
Manage and update our strategic export plan. For this purpose, let’s consider a manager and set a schedule for other senior managers. Provide employees with the necessary systems to handle international orders.
In the field of export, the market research process should not be neglected. Using the results of market research, let’s check which products and in which countries have the most demand. For this purpose, we can also get help from the Chamber of Commerce.
7. Review of Foreign Markets
For this purpose, it is better to act personally. Investigating foreign markets can happen through participation in international trade fairs or through business and business missions. Based on the reports that we have obtained while attending the exhibition or business trip, we can do better in the field of export.
Up To Sum
To enter the field of export, we must have a suitable and targeted strategy. In the export strategy, all financial issues, budgets, governing laws, reviews of global markets, etc. should be considered. Without having a proper strategy that specifies the purpose of entering the export field, our export plans may fail. Remember that the export strategy should be in line with the goals and performance of our group and company.