BASIC GUIDE TO EXPORTING, DEEPAK JOSHI [i can read with my eyes shut TXT] 📗

PREFACE

 

Exporting for the first time?
Exported before, but things have changed?
Need answers, but not sure how or where to get them?

                                                                                                This is the book you need.

                                                                                                           

                                                                                                         PREFACE

 

A Basic Guide to Exporting has given companies the information they need to establish and grow their business in international markets. Whether you’re new to exporting or just want to learn the latest ideas and techniques, and whether your product is a good or a service, this book will give you the nuts-and-bolts information you need.

 

To you, the reader, I hope this book challenges your assumptions about engaging in the world of international business and gives you the confidence to become an even greater success. Like the businesspeople featured in the pages that follow, we hope you will not only sell to the world—we hope you’ll help make it a better place. 

 

Professionally trained and experienced in International Trade Industry, I have gained very sound experience and knowledge in this field full of opportunities.

 

Thank you.

 

Deepak Joshi

Ahmadabad

STEP-BY-STEP GUIDE TO EXPORTING

                                                                                                       Step-by-Step Guide to Exporting

 

The Step-by-Step Guide to Exporting will help you get your business export-ready and well positioned for commercial success abroad.

Learn the essential principles of exporting whether you are a novice, intermediate or advanced exporter.

The Guide will help you to:

 

Be more competitive. Apply proven export strategies. Sell to more customers. Target global buyers online. Close more deals. Secure sources of export financing. Enter more markets. Leverage the benefits of free trade. Save time & avoid risks. Learn the legal aspects of trade.

 

Step 1: Assess your export potential

Step 2: Link to global value chains

Step 3: Develop your export plan

Step 4: Identify your target market

Step 5: Develop your export marketing strategy

Step 6: Enter your target market

Step 7: Deliver the goods

Step 8: Identify your export financing requirements

Step 9 : Understand the legal side of international trade

STEP 1: ASSESS YOUR EXPORT POTENTIAL

 

 

 Step 1: Assess your export potential

 

Trading abroad can boost your company’s profile, credibility and bottom line. Companies that export their products or services sell more, and are more profitable than those that don’t. Whatever your company size or sector, the rewards from selling your products and services overseas can have exponential returns.

 

Exporting: what's in it for you?

Increased sales. If your domestic sales are good, exporting is a way to expand your market, find foreign niche markets and take advantage of demand around the world. Higher profits. If you can cover fixed costs through domestic operations or other types of financing, your export profits can grow very quickly. Economies of scale. When you have a larger market base, you can produce on a scale that lets you make the most of your resources. Reduced vulnerability. If you diversify into international markets, you avoid depending on a single marketplace and suffering from a domestic downturn. New knowledge and experience. The global marketplace abounds with new ideas, approaches and marketing techniques that could also prove successful in Domestic Market. Global competitiveness. The experience your company gains internationally will help keep you competitive in Domestic  and in the global marketplace.

Exporting has many challenges, but you can surmount them through careful preparation and planning. Among these challenges are:

Increased costs. You may have to modify packaging or your products or services, and account for short-term costs such as extra travel, production of new marketing materials and additional staff to adapt to markets abroad. Level of commitment. It takes time, willingness, effort and resources to establish and maintain yourself in foreign markets. Staying in for the long haul. While exporting holds great economic promise for most companies, months or even several years can pass before you see a significant return on your export investment. Language and cultural differences. Familiarize yourself with the differences in language, culture and business practices so you don't inadvertently offend your potential customer and lose a sale. Paperwork. There's no way around it, both Local   and foreign governments require a lot of documentation from exporters of products and services. Accessibility. You have to be easily available to your foreign clients. Competition. You must be sure you're thoroughly familiar with the competition in your target market.

 

Are you ready?

 

An export-ready business is one that has the capacity, resources and management to deliver a marketable product or service on a global scale at a competitive price. The trick is to determine whether this is true of your company—and if it isn't, how to make it happen.

Your first step is to think about the resources and knowledge your business already has. Consider the following as a starting point:

Your expectations. Do you have:

clear and achievable export objectives? a realistic idea of what exporting entails and the timelines for results? an openness to new ways of doing business? an understanding of what is required to succeed in the international marketplace?

Human resource requirements. Do you have:

the capacity to handle the extra demand associated with exporting? senior management committed to exporting? efficient ways of responding quickly to customer inquiries? personnel with culturally sensitive marketing skills? ways of dealing with language barriers? a local contact or “go to” person?

Financial and legal resources. Can you:

obtain enough capital or lines of credit to produce the product or service for new orders? find ways to reduce the financial risks of international trade? find people to advise you on the legal and tax implications of exporting? deal effectively with different monetary systems and ensure protection of your intellectual property?

 

Competitiveness. Do you have:

a product or service that is potentially viable in your target market? resources to do market research on the exportability of your product or service? proven and sophisticated market-entry methods?

Evaluating your export potential :

 

When analyzing the export potential of your products/goods or services, you may want to account for the following considerations:

Customer profiles

Who already uses your product or service? Is your product or service in broad, general use or limited to a particular group? Is your product or service popular with a certain age group? Are there other significant demographic patterns to its use? What climatic or geographic factors affect the use of your product or service?

Product modifications

Are modifications required to make your product appeal to foreign customers? What is the shelf life of your product? Will this be reduced by time in transit? Can the packaging be easily modified to satisfy the demands of foreign customers? Is special documentation required? For example, does your product have to meet any technical or regulatory requirements?

 

Transportation

How easily can your product be transported? Would transportation costs make competitive pricing a problem? How efficiently does the target market process incoming shipments? Are specialized containers or packaging materials required?

Local representation

Do you require a local marketer/salesperson or other local representation? Do products require professional assembly or other technical skills? Is after-sales service needed? If so, is it available locally or do you have to provide it? Do you have the resources to do this?

Exporting services

If you're exporting services, what is unique or special about them? Are your services considered to be world-class? Do you need to modify your services to allow for differences in language, culture and business environment? How do you plan to deliver your services: in person, with a local partner or by electronic means such as the Internet?

Capacity

Will you be able to serve both your existing domestic customers and new foreign clients? If your domestic demand increases, will you still be able to look after your export customers and vice versa?

 

 

International business and science, technology and innovation.

 

In a global marketplace, diversifying our exports into the area of science, technology and innovation (ST&I) is essential to maintain a robust and adaptable economy.

 

ST&I on the global economic structure are creating immense transformations in the way companies and nations organize production, trade goods, invest capital, and develop new products and processes. Sophisticated information technologies permit instantaneous communication among the far-flung operations of global enterprises. New materials are revolutionizing sectors as diverse as construction and communications. Advanced manufacturing technologies have altered long-standing patterns of productivity and employment. Improved air and sea transportation has greatly accelerated the worldwide flow of people and goods.

 

All this has both created and mandated greater interdependence among firms and nations. The rapid rate of innovation and the dynamics of technology flows mean that comparative advantage is short-lived. To maximize returns, arrangements such as transnational mergers and shared production agreements are sought to bring together partners with complementary interests and strengths. This permits both developed and developing countries to harness technology more efficiently, with the expectation of creating higher standards of living for all involved.

 

Rapid technological innovation and the proliferation of transnational organizations are driving the formation of a global economy that sometimes conflicts with nationalistic concerns about maintaining comparative advantage and competitiveness. It is indeed a time of transition for firms and governments alike. This book provides a broad overview of these issues and seeks to shed light on such areas as the changing nature of international competition, influences of new technologies on international trade, and economic and social concerns arising from differences in national cultures and standards of living associated with adoption and use of new technologies.