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    Gain a Foothold in New Markets



The challenge of a businessman to insert your company and products in the international markets, goes far beyond selling abroad through contacts with importers or make sporadic sales. It is necessary to have a long-term vision.


Selling in export markets is more complicated to deal with internal clients. An understanding of the various logistical issues involved, a new set of skills and a means of long-term commitment is required to make the effort worthwhile. However, the rewards and enlargement of income flows can be very rewarding.


Many companies of applicants have failed in their attempt to "internationalize" their operations. "One of the reasons is the tendency to consider the company's international or global effort as an" added "to their existing strategies." Some companies get closer to international markets as a mere extension of their domestic markets. The assumptions of this kind can be deadly. Other companies have copied their strategy of the industry's leading international. This can also cause the fault. If the company should compete with one of the four previous models depends on many factors, especially in the desired extent and type of international participation.gain a foothold in new markets



The first step for export is to locate a very promising market. You can find export prospects in several markets, but beware of the diffusion of their excessive resources. A test market at the same time is a sensible approach, so reduce the chances of a country.


Confirm demand

Once you've found a likely market, establish whether there is demand for your product or service. It's further deeper to find an equivalent overseas the Australia Statistical Office provided figures on trade. You need an idea of the strength of the economy and areas of growth in the market of destination preference that offer the best opportunities.


The most convincing evidence of demand will be sales has already secured (maybe online) or consultations and sales leads via email or your website. Consider testing your product or service on the market to confirm the demand before investing.



You can sell your product or service as it is, or is it product needs modifications to make it acceptable to the different cultures and regulations?

The themes of research such as the packaging, labelling, the colors and the quality and standards of security in the country of destination. For example, children's toys will have that meet standards for safety and electrical equipment may need anything, since the changes of voltage and plug to the local certification.

Research issues include quotas, taxes and tariffs or taxes that may be affecting its price.gain a foothold in new markets


That is why, one must consider the following questions:

It is a versatile product, easy to adapt or not?

Having to adapt it, what its cost?

The necessary inputs are normal supply?

Adaptation, must do is about the product, or some of the components?

The company's staff will be required, or external personnel will be recruited?

These questions need to be answered in order to prepare the product, and thus the company can decide, if you are going to conquer foreign markets.

For certain products, the best would make few units, and then trying to commercialize them in the selected market. However, if the experience proves unsuccessful, attempt has a lower cost than the of having hired a specialist in international marketing.

On the other hand, there are employers who do not recognize the value of a market study, this mistake has basis, in that if the product has quality in the domestic market, and people accepted him and purchase, therefore, should be sold without difficulty in the external market.


About market research, operational tool that facilitates the task, is a process to obtain, order and analyze information on products, markets, customers, promotion, in order to assess the incidence and behavior of each of the above factors and conclusions. This guide to action you decide to take the company.

gain a foothold in new markets



Political, economic and social conditions.
Competition.
tariff restrictions.
cultural, religious and linguistic.
communications and transport facilities.
new shopping habits.
the new preferences of consumers.
At first, all countries are potential buyers, but how to approach the analysis of all countries is impossible, the study should focus on countries that are more interested in the proximity, the political and economic situation, cultural aspects, among others.


Country market reports / product under analysis, is in most of the cases, one of the company most suitable to provide practical, relatively quick and easy to read information. About market research, operational tool that facilitates the task is a process to retrieve, organize, and analyze information on products, markets, consumer, advocacy, to assess the incidence and behavior of each of these factors and to draw conclusions. This will guide the action you decide to take the company. In general, market profiles relate to a single product, or in relation to a group of products in the same market, studies aimed at facilitating access to certain markets, and should provide the information requested by the exporters. However, there is to consider that there are two reasons why a firm chooses to export: by conviction or necessity.


Without doubt, the first reason is the most serious, and allows the result of exports is the result of a scheduled task. In contrast, the second reason almost always come from the decline in domestic demand, and then raises the possibility of exporting.



Obtain license as a means of entering a market

the company can use the licenses as a means of entering foreign markets. Thus, for a fee, the company transfers one or more of its intangible assets (such as a trade secret, patent, trademark registered or) foreign firms. Licensing has been widely used in many industries such as the manufacture of civil aircraft, PC, semiconductor, electronics, and hotels.


There are several factors that encourage companies to participate in license agreements:
Licenses spread technology and established as the dominant industry's standard. Licensing encourages others to use its technology so that it can control the market or ahead of rival technologies. For example, with the use of license agreements, Microsoft's Windows became a worldwide success.gain a foothold in new markets


The royalties generated from licenses are an important source of income in products that already is considered mature national markets.


The company can use the cross-licensing for information about other technologies, products or processes. For example, a company may allow another company to use their technology in exchange for access to the technology that the company's new.



Franchises.

 This approach is becoming a popular means of entering foreign markets. The franchise, a company authorizes other companies to do business in a specific way. Soft drinks and fast food companies have used the franchise to expand internationally.


Joint International Ventures.   
                                                                                              Joint ventures (IJVs) International are an important mode of entry to foreign markets. IJVs can help companies to overcome barriers to trade, achieve economies of scale, facilitate the acquisition of managerial and technological skills secure access to raw materials and reduce the risks associated with complex projects.


Despite its growing popularity, IJVs are considered to be a strategic choice of risk. A major contributor to this high rate of failure is the poor selection of partners IJV. To minimize the risks associated with IJVs, executives must consider the following aspects in the selection of potential partners.


Disagreements between the partners in the area of the company, contributing to the high rate of failure. Success requires agreement on the scope and objectives of the IJV, legal form, the contributions of the partners to the company, the management, the company's relationship with the parent company, the lifecycle of the company, and the conditions under which the IJV was dissolved. These issues require careful and diligent negotiations.



Global strategic alliances.  
                                                                                       Global strategic alliances refers to the cooperation between multinational competitors, potential or actual agreements. Formal partnerships range from joint ventures, in which two or more multinational corporations have a shareholding interest, short-term contractual arrangements in which two companies will agree to cooperate in a particular problem (such as a new product development). Critics warn that global strategic alliances, such as joint ventures formal to give competitors a low cost route to acquire new technology and access to the market. On the other hand, strategic alliances may be for the benefit of both parties. However, ensure that this happens, partnerships must be structured so that (1) a company not wanting to cede the patented technology to its partner in the Alliance, and (2) a company learns important skills of his partner in the Alliance. Partnerships can be seen as a way of sharing the high fixed costs and high risks associated with the development of new products or the opening of new markets. In addition, an Alliance can be seen as a way to bring together complementary capabilities and assets that neither company could easily develop by itself.

Media Sales

What is the best way to sell your product in the country concerned? Some options include:

A sales agent find buyers in exchange for a Commission on sales. Find out how many other products deals with the agent. Too many products as I could see the product lost among others. Agents also tend to push the products that offer a higher Commission.

A distributor to buy their products from you and they sell with a profit margin, so it is likely to have less control over prices. Check the background of both agents and distributors, and a period of test in the first place.


A joint venture with a local company can give you access to established customers and markets. Opening of a branch abroad is usually the most expensive option. Exporters usually reserve this option for when other methods have established strong sales, sustainable and who need more control over issues such as after-sales service.


Selling online is the cheapest option, but it may not work for your product or service. You will also have to investigate Internet trading regulations to keep on the right side of the law in your target market.






Beware of potential risks

These can include; Home from the market. Be careful to set aside existing in the emotion customer develop an export market. You may need to delegate staff to cover some of its obligations in the domestic market to ensure revenues do not fall.

Risks of money. International commerce transactions can be complicated. Errors include currency volatility, the solvency of their clients abroad and time delays between send and collect. Talk to your banker's small business NAB the wide range of products that are offered to help you manage your transactions and will help to protect themselves from the effects of fluctuations in currencies, commodities and interest.

Once you've done your homework, put its conclusions and decisions on a plan of export which falls within the framework of its existing business plan. This could help you to obtain any financing you may need. It is recommended to create a box of export forecast flow that identifies all those provided for their probable costs before committing to a contract for export.gain a foothold in new markets