how to start export

8/9/2019 How to Start Export

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HOW TO START EXPORT:

EXPORT READINESS AND POTENTIALITIES

Presented by

Rahim Jabbar

January 2010


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HOW TO START EXPORT

Points of Discussion (1)Export: Extension to the International MarketChallenges in Playing in the International MarketMajor Criteria for Export Readiness

How to become competitiveEntrepreneurial spiritQuality products

General Overviewof Exporting ProceduresThe First Would-Be-Exporters Task: Selecting theMost Potential PMC (Product-Market Combination)

Finding Information on The International MarketThrough Research


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HOW TO START EXPORT

Points

ofDiscuss

ion (2)

Finding Information on The International MarketThrough Research

Determine what you need to know

Decide on the research techniquesPlan your research activitiesCollect relevant dataAnalyze the data collectedTransforminformation intelligence

General Entry Strategies Into the International Mark


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PRODUCT XIn the domestic

market

PRODUCT XIn the global

market

Entry strategy

What are itsstrengths?

weaknesses?

+ + +/ - - -

How canProduct Xbe made

successful?* * */ ! ! !

What are the

opportunities &challenges in the

international market

*Changes*Alternatives*Allocation of resources*Well planned program*Step-by-step*Flexible*Adaptive

What are the competitiveadvantages ofProduct Xin the domestic market?

What should be the

competitiveadvantages ofProduct X in theglobal market?

EXPORT : EXTENSION TO THE INTERNATIONALMARKET

Copyright Rahim Jabbar/2010


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CHALLENGES IN PLAYING IN THE

INTERNATIONAL MARKETChallenges of distances high cost of transport

shipping and insurance

Diverse languages, customs, traditions and national laws

Currencies, weights and measures, marketing practicesRisks and uncertainties

Customs procedures and formalities

Exchange control

Rates and payment ofimport dutiesComplicated distribution channel: multiple chain of

middlemen.


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Are you competitive enough? Do you have the right product? Are you willing to adapt your way of doing

business? Do you have enough number of competent people?

Do you have adequate financial resources? Will you be able to cope with increased demand? Are you ready to embrace opportunities tofind andwork with prospective trading partners in theinternational marketplace (Be assured that , they

will be willingly to support you through win-wincommercial arrangement!) Do you have realistic expectations?

MAJOR CRITERIA FOR EXPORT READINESS


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Possess a strong entrepreneurial spirit Be the first

Be the best Be different Be the customers choice in the exportmarket

Be open

HOW TO BECOME COMPETITIVE?


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ENTREPRENEURIAL PROCESS DIAGRAM

1.Motivationto make adifference

3.Spotting &

exploitingopportunities

Overcoming

obstacles

4.Findingrequiredresources

5.Usingnetworkextensively

6.Showing

determinationin the face ofadversity

7.

Managingrisks

GROWING

ENTERPRISE

THAT SUCCEEDS

8.Controllingthe business

9.Putting thecustomers first

2.CREATIVITY & INNOVATION

10.Financial,social,aestheticcapital

Recognitionof value

Source: Bolton & Thomson, Entrepreneurial, Talent , Temperament, Techniques, Butterworth Heinemann, 2000


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DO YOU HAVE A QUALITY PRODUCT?

Does your product performwell? Does it serve what it issupposed to do?

Is your product reliable?Is your product durable (long lasting)

Does your product have special features (attractivedifferentiation)Does your product conform to the quality standard ofthe target market?

Is your product serviceable? (ifits is non-consumer

product)Does your product look attractive? Is it aesthetic enough?Will the target customer have a good perception on yourproduct?


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Country of

Destination (COD)

Country of

Origin (COO)

TRADE POLICIES

Market regulations

Customs procedures

Import duties

Exporting lawsExporting procedures

Market Access Requirements

International Money Flows

EXPORTING: PROCEDURES, MARKET ACCESS REQUIREMENTSTRANSPORTATION AND FLOWS OF MONEY

*

*Packaging

*** **

*****Unpacking into

individual unit

LAND

TRANSPORT

LAND

TRANSPORT****

****Customs (COD)Foreign exchange regulations

Payment procedures

Foreign exchange regulations

Banking procedures

**

**Transshipment

SEA/

AIR

\TRANSPORT

Inter-modal transporation

***Customs

(COO)

***


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THE WOULD-BE-EXPORTERS FIRST TASK ISENSURING THE MOST POTENTIAL

PRODUCT-MARKET COMBINATION

EXPORTPRODUCT

EXPORTMARKET

EXPORTER

What are required of the product by themarket?

Which one is the most potential market ?


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(1) Determine what you need to know

(2) Decide on the research technique

(3)Plan your research activities

(4)Collect relevant data

(5) Analyze the data collected

(6) Transforminformation intelligence ( as a basis for planning

activities)

HOW TO OBTAIN INFORMATION ON

EXPORT MARKET THROUGH RESEARCH


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(1) DETERMINE WHAT YOU NEED TO KNOW

RESEARCH AT THE MARKET ANALYSIS STAGE

(1) Target Market (what country COD)

Market size (volume and value)

General condition (the country, culture, economy,

industrial market, consumer, market trend)

(2) Market Access Requirements

(3) Trade Flows (Import/Export)

(4) Market structure (supply chains, price elasticity, etc.)


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RESEARCH AT THE MARKET ANALYSIS STAGE

(5) Market trends and growth patterns

(6) Segmentation segment to be targeted

(7) Competitors

(8) Buyers/Customers/Consumers



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QUESTIONS THAT MUST BE ANSWERED DURING THE

STAGE OF FORMULATING MARKET ENTRY STRATEGY

Product andpositioning

Price

Distribution channels

Target buyers/customers/consumers

Promotional activitise



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QUESTIONS TO BE ANSWERED FOR ANALYSING

FEEDBACKS

Product sales (volume, value, share)Pricing levels (level of acceptability)

Distribution (where is it sold)

Buyers/customers (who/what kind of people that like your

product)

Promotional activities (howfar the level of awareness and

how are the target peoples cultural responses?)


(continued)


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(2) DECIDE ON THE RESEARCH TECHNIQUES

(1) DESK RESEARCH)

SOURCES:

CBI: http://www.cbi.nl (for EU market)

Bureau of Statistics

Chamber of Commerce

Trade Associations

Embassies

Banks

Information Centers Public libraries


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(2) THROUGH INTERNET

Data might have long time lags (two to three

years late) or you have to pay

(3) FIELD RESEARCH (much more expensive)

Plan the trip

Arrange for appointments

Select the most appropriate time

Prepare the list ofquestions

Focus the discussions on most relevant topics

(2) DECIDE ON THE RESEARCH TECHNIQUES(Continued)


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(3) PLAN THE RESEACH ACTIVITIES

DETERMINE CATEGORIES OF DATA PER COUNTRY

BY SUBJECTS

PLAN THE RESEACRH ACTIVITIES

BY COUNTRY

SUBJECT

SOURCES OF INFORMATION

WHEN/WHAT TIME

SUMMARY AND CONCLUSIONS


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(4) COLLECT RELEVANT DATA

WHAT TYPES OF INFORMATION THAT HAVE

BEEN OBTAINED AND EASY TO OBTAIN?

STARTING FROM WHAT COUNRTY?

Trade statistics

Market information


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(5) ANALYZE DATA INFORMATION

SELECT AND CROSS-CHECK THE DATA FOR

RELIABILITY AND DIRECT BENEFIT

Reliability who are the sources

Benefitswhat are your objectives , time coverage

of the data/information

Completeness

Comparability

Consistency Always refer back to your problems & objectives


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(6) TRANSFORM INFORMATION INTELIGENCE

FIND CAUSAL RELATIONSHIP AMONGST THE ISSUES

YOU FOUND TO MAKE A COMPELTE STORY

PREDICT WHAT MIGHT HAPPEN IN CERTAIN

CONDITIONS&SITUATIONS

SUMMARY OF RESEARCH RESULTS:

Reasons for doing the research

Research objectives

Methodology (how the research was conducted)

Major findings Consumers/customers, competitors, market trend,

opportunities and threats.

Attachments: (statistics, list of addresses, etc.)


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MANAGING RESEARCH ACTIVITIESFOR EXPORT MARKET

PREPARATION OF RESARCH AND SUPPORTING

BUDGET:

When will it start?

How long is the time required tofinalize it?

Research never stops! Changes happen at a very

high/accelerated speed

Howmuch is budget needed?

REQUESTING THE ASSIATNCE OF EXTERNAL PARTIES

Select what part you can do by yourselfor on your own

When is the help from a third party is needed?

Get to knowfor sure on how to get the help from a third

party.


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THREE OPTIONS TO ENTER THE GLOBAL/

INTERNATIONAL MARKET

Indirect

Export

Direct

Export

PRODU

CTION INTHE TARGETED

DESTINATION OF

COUNTRY (COD)

Three Options


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OPTIONS FOR INDIRECT EXPORT

IndirectExport

Export trader(collectors from local/

domestic producers)Trading houseRoving InternationalPrivate Trader


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DirectExport

Buyers in COD

Agents in CODDistributors in CODRepresentative in CODSister Company in COD

OPTIONS FOR DIRECT EXPORT


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Production inthe Country of

Destination (COD)

Assembling in COD

Contract Manufacturing

Licensing agreement

Franchising

Joint venture company

Strategic alliance

Local /domestic

production in COD

OPTIONS FOR PRODUCTION IN COD


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SUMMARY: STRATEGIC OPTIONS TO ENTERTHE INTERNATIONAL MARKET

Indirect

Export

Direct

Export

Production

In the Country of

Destination

Three Options of the Strategies

Export trader

Trading house

Roving International

Private Trader

Buyers in COD

Agents in COD

Distributors in COD

Representative in CODSister company in COD

Assembling

Contract manufacturing

Licensing agreement

Franchising

Joint-venture company

Strategic alliance

Local/domestic

production in COD

S T A G E W I S E

how to start export

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