Question

2 Describe the steps and requirements to follow for a good export plan for a good product or service from Colombia to Israel.

Answer 1

The steps and requirements to follow for a good export plan for a good product or service from Colombia to Israel:

1. The very first step is to check that business should be ready for export because exporting products or services consume time and money and requires strong management commitment, strength in the domestic market gives overseas customers confidence in the product and ensure better delivery of the product at right time, on a right place. In this step, it is essential to conduct a survey in the local market in order to ensure the needs and desires of the customers.
2. Developing a sound strategic export planning is a vital component for moving goods from one country to another. A good export strategy is the one which consists of accessing new technology, reducing fixed cost, fully realizations of production capacity, adding management expertise, prepare for contingency situations.
3. Market research is another step that needs to follow, it involves finding out import duties, regulations, market size, competition, demographics, etc. this information helps you to understand how the market operates.
4. The right pricing for goods and services is both crucial for a successful business. For pricing take the help of market research and understand the relative costs, demand and competition of local market, packaging and labeling charges, product liability insurance, compliance with foreign standards, export financing charges and promotional costs.
5. Risk management plan: Exporting has a lot of potentials as it is not only expanding business overseas but also giving profits, and it has more opportunities but it carries greater risks also. Risk in terms of political instability eg. nationalization of foreign assets, civil war, trade blockages, etc another risk is legal risk, Corruption risk, non-payment risk, etc. therefore it is advised to the company manage risk systematically by assessing the probability and possible consequences of the risk.
6. Logistics management: For good exports, transporting the product to an overseas market efficiently and competitively is crucial.