Understand the foreign market variables that need to be considered in an internationalization plan
When we talk about export, a series of variables need to be considered before starting a internationalization process . It is necessary to ask, first of all, am I ready to export? Can my company start an export process?
When people think about exporting, they start with the question “Where am I going to export to?”. But starting the process with the target market is wrong and can lead to the failure of your export process.
Today we are going to talk about the variables that need to be analyzed to find out if your company is ready to export. & nbsp;
Variables in the international market
Costs
Costs can prevent an export if not carefully analyzed. The foreign market can often demand lower prices, different product characteristics, suppliers with different quality and prices.
In addition, external requirements for greater automation, more competitive production processes, more innovative designs also need to be analyzed at their cost. It will be necessary to adapt, for example, packaging. < / a>
Price
It will be necessary to know the cost structure of exports, logistics, imports and commercialization of the product in the destination country. & nbsp;
Exchange
Fluctuating exchange rates can make the product more or less competitive. Therefore, it will be necessary to continuously monitor the exchange rate variation in the countries to which you want to export. & Nbsp;
International scenarios
It will be necessary to monitor the development of the economies of the main countries with an important business potential for exporting the company, international agreements, trade flows, among other things, to identify the best regions in the world in terms of competitiveness.
Logistics
Knowing in depth the cost structure from the company’s warehouse to the final destination is essential for the product to be competitive. A poorly logistics can hinder – and a lot – your export process.
Customs policy
Each country has specific customs procedures and obstacles to the export process & nbsp; they can be huge if the customs “mechanics” are not well understood. & nbsp;
Culture
Cultural differences in countries, whether in trading or consumption, can impede the success of your business. & nbsp;
Legislation
Existing laws in the destination country may make your foreign trade unfeasible and you need to be aware.
Examples of legislation that need to be thoroughly known: import, trademark and patent legislation, consumer protection, international and labor contracts. & nbsp;
They are some examples of regulations that can create serious barriers if they are not studied in depth with experts on the subject.
A good export process needs to analyze these variables. You must be sure that you are ready to export before starting the internationalization process itself.
Test your company’s maturity! See if you’re ready to export!
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