business
Assessing Export Readiness
Assessing your readiness is the first place to start in examining if exporting is a viable option for your company, and product or service. Assessing your export readiness helps you to make effective decisions based on logical, systematic thinking.
To assess your export readiness, answer the following questions, based on the Department of Commerce's Export Qualifier Program. Then, read the case study to find how one company assessed their readiness.
There are many motivational and organizational factors involved in determining a company's export readiness. Consider these factors before answering the questions:
• Is Your Company Ready to Export?
• Is Your Product Ready to Export?
Is Your Company Ready to Export?
Motivational Factors
These are normally the motivational reasons companies decide to engage in exporting. You may find that one or more may match your company's motivational reasons for exporting.
• Contribute to general long-term expansion
If your objectives are to expand your business over the long-term (and you not necessarily looking for immediate returns today), exporting may be for you. Successful exporting is built upon plans that are well laid, and that take time to develop and execute. Building an international sales and marketing program involves taking time to identify market opportunities, develop working relationships with overseas partners, and engage in profitable transactions that are in alignment with the overall goals of your company.
• Enhance competitiveness
Generally, participating in the international marketplace provides opportunities for companies to improve their overall competitiveness. By selling internationally, a company can gain insights on customer requirements, competitor activity, and different ways of doing business (management know-how). Additionally, by competing internationally, companies may acquire new technologies, and new ideas for products, as well as partnerships.
• Exploit unique technology and expertise
Entering the exporting arena because of a technological advantage your product or company possesses may help lead to success within the international marketplace. Superiority in product quality and expertise can give a company an edge over competitors who may not possess such advantages. For those without (and with) a technological edge, consider the other advantages your company may choose to offer that may include product packaging, after-sale servicing, delivery and of course, competitive pricing.
• Improve return on investment
If your reason for exporting is to see immediate return on investment, then exporting may not be for you. Generally, succeeding at exporting requires long-term goals and objectives, where as short-term gains and profitability will not be an immediate reality. Exporting programs that are most likely to succeed are those that are well thought out, plan for the long term, conduct market research, build international relationships, and arrange the sale and delivery of international shipments. Companies should seek multiple benefits from exporting, such as expanded customer networks, exposure to new ideas and technology, and ideas for global sourcing.
These are normally the motivational factors involved in a company's decision to engage in international trade. As you now know, the financial gain of [next page]