Global Business - Chapter 16
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What are the promises of exporting?
increased revenue and profit base of a company
What are the pitfalls of exporting?
- must be proactive; not reactive
- If unfamiliar with foreign markets, the firm simply doesn't know the opportunities are there
- poor market analysis
- poor understanding of competitive conditions
- failure to customize product for foreign market
- lack of effective distribution
- poorly executed promotional campaign
- problems securing financing
What don't some new exporters realize?
- it is hugely time consuming
- requires a vast amount a paperwork
- many potential delays and errors
How can the exporting experience be improved?
- collect valuable information
- use an export management company
- Gain knowledge and expertise from government-run agencies
Advantages of EMCs
- experienced specialists in certain areas
- can help avoid common pitfalls
Disadvantages of EMCs
company can fail to develop it own exporting capabilities
What are some export strategies?
- 1. Helps to hire an expert
- 2. initially focus on one market or a handful of markets
- 3. enter on a small scale to reduce the costs of subsequent failure
- 4. recognize the time and management commitment
- 5. must take time to build local relationships with suppliers and customers
- 6. important to hire locals
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