Monday, March 14, 2011

How to Access Export Markets; 5 Key Things You Need to Do

With increase in global competition, export development has gained currency as key component in wealth creation. To achieve success, you need to a vibrant strategy which addresses the challenges in accessing international markets namely:
Modernize your export infrastructure through effective planning, coordination and delivery .Start by screening the products or services to develop, the objective, being to eliminate unsound concepts prior to devoting resources to them. Seek to understand the requirements for the process of production and distribution for the identified product or service. Then conduct an environmental analysis to analyze your company’s internal environment (competitive power) and external environment (export market).After the analysis, move to scope planning, to identify the details for product development such as function, cost, and delivery. Make clear the development activities by breaking down activities to achieve the desired results. Finally, before commencing development make schedule by the items of work.
Develop online marketing. Create a website for your business to serve as a storefront and also give you presence online.
Enhance your management capacity for export enterprise. Analyze your company to understand its competitive power from both inside and outside. Maximize on the strength and opportunities revealed and strategize and execute ways to reduce the weaknesses and threats there in.

Competitive pricing. Calculation of export prices is a critical decision which will determine the success and profitability of your business’s export activities. If prices are set too high, they may be uncompetitive, if too low they may be uneconomic. Therefore before venturing into export business, you must verify profitability of export products. To determine profitability, you can follow either: Cost plus pricing in which price is determined by adding the cost of exporting such as inland transportation, loading charges, freight costs and insurance plus profit margin to the basic cost of manufacturing .The resulting price may or may not be competitive in the market place. Or, Top downwards (reverse) pricing which is the inverse of the cost plus method, and the starting point is the market price and export costs are deducted to arrive at the manufactured cost plus profit. It is advisable to know the current price in the market whichever system of pricing you will prefer to use. If the price of product is much higher than what is offered in the market then the product or service must show the exact benefit being paid for. 

Quality management is a pre-requisite for access to international market. To ensure that you deliver to your customers a consistent product or service you need to implement a standard quality practice. The International Organization for Standardization (ISO)http://www.iso.org/iso/qmp.htm  has developed several standards to help you deliver.
14000 Series Environmental Management System.http://www.iso14000-iso14001-environmental-management.com/
 
Depending on your business, these standards will promote the adoption of process approach where the company sets a system of processes which enables it to meet the requirements of the customer.
Export to Explode Cash Flow and Profits: Creating New Streams of Business in Asia, Africa and the Americas with Little Investment 
Please add your own tips to this list by leaving a comment.

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