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Export and set up abroad

Export and set up abroad

Developing internationally ... avast subject. When the domestic market becomes too narrow, that the company is looking for growth relays, it is necessary to increase its critical size to face the competition ... developing internationally becomes essential. 

Export and set up abroad

How will the company internationalize? What are the fundamental points to carry out this project? 

Here are some important steps. 

Export diagnosis of the company:

The objective is to answer questions such as: what are our objectives? What will internationalization bring to the company? Is it consistent with its strategy? Does she have the necessary skills? What are the internal risks? What product can and want to export? What means and tools to devote to this project? 

We assess the export potential of the company: 
  1. Management capacity (legal, linguistic skills, the existence of an export department or export skills, etc.) 
  2. Adaptability (technical level, costs, etc.) 
  3. The competitiveness of products and services 
  4. International experience 
  5. Human resources, financial resources, means of production
Market selection: the aim is to know which markets the company will be interested in. We must repeat the conclusions of the diagnostic stage and by additional analysis target the countries that most closely match the profile sought. 

Market research: once the country or countries have been targeted, it is necessary to conduct a study to fully understand the functioning of the markets in which the company is interested, to properly assess their potential and the achievable sales. 

The export strategy: define how the company will go about marketing its products on the targeted markets.

In particular, distribution strategies will need to be defined. The possible solutions are: 

An indirect export mainly via: 

An importer or a distributor, the main drawback is an absence of control over the destination of the goods: the company does not know who the buyers are, what their purchasing process is… In short, all important information for the control of a market. 

An indirect export is often advised to get the first experience in export. 

Direct export, using: 
  1. Direct recruitment of salespeople. Pay attention to management. 
  2. A commercial agent: established on the targeted markets, it is an inexpensive solution and easy to set up.
Establishment in these markets: 
  1. by the creation of a joint venture 
  2. by establishing a Subsidiary 
  3. through cooperation agreements 
  4. by technology transfer 
When the company no longer decides to export but to set up by creating strong legal links with an entity present on the spot, we go to a higher level in terms of decision irreversibility and therefore in terms of risks. 

The company is all the more likely to succeed if it selects markets suited to its capabilities and means. A Community export strategy will undoubtedly prove more suited to reduced means, provided that the sales potential is of course attractive. 

Do not hesitate to consult our selection of links concerning international trade.

Export and set up abroad Export and set up abroad Reviewed by communication etiquette on 6:51 PM Rating: 5

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