Export Strategies

Introduction

Export goods or services are provided to foreign consumers by domestic producers. Export of commercial quantities of goods normally requires involvement of the Customs authorities in both the country of export and the country of import. (Mancha Navarro, 2001) The advent of small trades over the internet such as through Amazon, e-Bay and the like, have largely by-passed the involvement of Customs in many countries due to the low individual values of these trades. Nonetheless these small exports are still subject to legal restrictions applied by the country of export, particularly in respect of strategic export limitations.(Ferrer Trullols, 1993)

There are many market export strategies that a business can follow when setting up in another country. Each has differing levels of risk, legal obligation, advantages and disadvantages. There are four factors that must be taken into consideration when considering a partner in another country are the complementary skills that your company will acquire, which will be able to be used later when doing business again. Another factor is the culture in the other country; if your company's corporate culture is not compatible with the import partner's, there is a high chance of your product not being successful when entering this new market. (Gómez Palacio, 1985) Also when dealing with a new country, you must have compatible goals, that is to say you should set yourself goals that are possible to achieve.

Exporting your Product

Local Office

There are different ways of exporting your product to another country. One of these ways is to establish a local office in the country in question, which is to say the exporter establishes a local presence through a representative or branch office, rents office space and hires staff, which could be just one person. Advantages of establishing a local office are greater control of marketing and distribution, you have direct contact with customers, there is improved credibility in marketplace with customers, and you have access to local venture capital. (Carroll, 1999)

Nevertheless, there are some disadvantages too, for example sometimes the cost of establishing an office is higher than that of using an agent or distributor. Another disadvantage is that you don't have a local partner with contacts and expertise like in a joint venture.

An example is Corona, and how they export directly to a country sometimes dealing through local offices, which administer the beer and the public relations.