Question

What are the four steps, in order, involved in creating an export strategy? List and explain in detail each step.

Answer 1

Steps involved in creating an export strategy:

1. Identifying the potential market:

Identification of the potential market involves the evaluation of all the potential markets based on the export statistics, entry barriers, competition, demand, etc., and thereby determining the type of business and managerial variables that can provide success in the market.

1. Matching needs to abilities:

Once the target market is identified, the customer attributes need to be studied. This includes identifying the needs and wants of the customer and whether the company is able to satisfy those requirements by matching their abilities. The company should proceed further only if they are capable of addressing or attaining the satisfaction of their potential customers.

1. Making distribution plans:

The next step is the process of setting the distribution and logistics network. The company representatives should make sure they meet the people working in the relevant areas and conduct a thorough evaluation to determine the perfect business partners.

1. Implementing the plan:

The implementation is the final and the most crucial part in which the research and the plan that has been done needs to be perfectly applied to achieve the maximum results. Once implemented, the process needs to be kept in track with continuous review and analysis and any risk and uncertainties should be managed in due course.