Global Business - Chapter 16

  1. What are the promises of exporting?
    increased revenue and profit base of a company
  2. What are the pitfalls of exporting?
    • must be proactive; not reactive
    • If unfamiliar with foreign markets, the firm simply doesn't know the opportunities are there
    • poor market analysis
    • poor understanding of competitive conditions
    • failure to customize product for foreign market
    • lack of effective distribution
    • poorly executed promotional campaign
    • problems securing financing
  3. What don't some new exporters realize?
    • it is hugely time consuming
    • requires a vast amount a paperwork
    • many potential delays and errors
  4. How can the exporting experience be improved?
    • collect valuable information
    • use an export management company
    • Gain knowledge and expertise from government-run agencies
  5. Advantages of EMCs
    • experienced specialists in certain areas
    • can help avoid common pitfalls
  6. Disadvantages of EMCs
    company can fail to develop it own exporting capabilities
  7. What are some export strategies?
    • 1. Helps to hire an expert
    • 2. initially focus on one market or a handful of markets
    • 3. enter on a small scale to reduce the costs of subsequent failure
    • 4. recognize the time and management commitment
    • 5. must take time to build local relationships with suppliers and customers
    • 6. important to hire locals
Card Set
Global Business - Chapter 16
export strategies