Although exporting may seem simple, it requires you to do your homework! A company cannot venture into unfamiliar territory without knowing what to expect, the requirements, market needs and other factors.
In order to commence an export project, previous planning is required to determine the company’s capacity to assume the responsibilities acquired with foreign clients, verify infrastructure, personnel and technical-practical knowledge. The company must obtain a thorough understanding of the export mechanism, including the distribution and logistics procedures to understand and conquer the desired market.
The company’s available resources will determine its export potential. Various factors must be considered by the exporting company such as:
- Manufacturing capacity and the aptitude to organize and program production on order to comply with the commitments acquired;
- Personnel availability and a general organizational structure that favors international business development;
- Availability of financial resources, which are necessary in order to finance business development abroad, market investigations, and to cushion the recovery period due to foreign sales;
- Specialized and technical expertise in the foreign trade and marketing;
- Clear objectives and priorities on the part of management in regards to developing export activities;
- Availability of a competitive product, although the level of product competitiveness is not the same in all markets.
Through exporting, exporters acquire knowledge of new production methods, inputs, and product designs from their international contacts. As a result, this yields higher productivity for exporters in comparison to their competitors who focus only on the domestic market.
Before deciding to export, the company must take into account the current state of these conditions, as well as medium and long term projections. The export capacity of a company can also be evaluated through more subjective conditions, of which they cannot be quantified as clearly as those previously mentioned.
For more information, kindly contact the Business & Investment Facilitation Unit at firstname.lastname@example.org or at 822-0175.