Exporting today becomes a requirement to survive as a company. Undoubtedly, the internationalization of the company, if the correct steps are followed, will generate risk diversification, greater brand recognition, income in foreign currency, improvements in negotiation capacity, strengthening of competitiveness, and greater profitability, among other benefits of this activity.
However, many companies have failed in the internationalization process mainly due to a poorly defined strategy, so below we will detail three simple steps that the exporter must take into account before crossing borders.
3 steps to follow before exporting
The first of the steps is to know, since it is the first scenario that we must analyze on a large scale, starting with an internal study of our company, observing production capacity, sales volume, product potential, human and financial resources and in turn, and not least, motivation, where the people who are part of the organization must be aware of the change sought so that there are collaboration and synergy.
Once the internal analysis of our company has been carried out, we must make known the potential market, that is, we will identify the destination country of our product based on cultural, geographical, demographic, macroeconomic indicators, existing trade agreements, political factors, existing competition from the same or similar product at destination, regulations and technical barriers among other important aspects to developing our approach strategy.
Once the global analysis of the company is finished, we will be in a position to build the SWOT matrix (Strengths, Weaknesses, Opportunities, and Threats), essential to determine the competitive advantage we have against the target market and when I refer to this type of advantage, we will not We are talking only about the price, but also, we can be competitive at the level of product quality, supply chain or financing methodology.
Another of the steps in our process will be planning. The export business plan seeks to systematically penetrate a product or service in the target market. To carry out this process, it is necessary to carry out an action plan where we will establish, how and by what means we will supply the new market, as well as we must anticipate future modifications of the product if necessary, in order to follow the requirements and restrictions of the target market. On the other hand, we will create a detailed budget, necessary to financially plan the operation where we will include general costs, transportation, insurance, taxes, intervening agents, margins, etc.
The last of the steps in this process is to act, whereby by means of an execution schedule we will implement the approach plan.
Several companies usually designate a person specifically in charge of this activity, who will designate collaborators along with their respective tasks, determining deadlines and periodic reviews to demonstrate the progress obtained.
Following these three steps aims to reduce the risk of the operation, companies do not always manage to land successfully within the target market, but through a properly carried out market study, we will have the necessary tools to make an appropriate decision.
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