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  • Essay / Export Strategies - 1013

    IntroductionExport goods or services are supplied to foreign consumers by domestic producers. The export of commercial quantities of goods normally requires the intervention of the customs authorities of the country of export and the country of import. (Mancha Navarro, 2001) The advent of small-scale commercial exchanges on the Internet, such as through Amazon, e-Bay and others, has largely circumvented the involvement of customs in many countries due to the low individual value of these exchanges. However, these small exports are still subject to legal restrictions applied by the exporting country, particularly with regard to strategic export limitations. (Ferrer Trullols, 1993) There are many market export strategies that a company can follow when establishing itself in another country. Each has different levels of risk, legal obligations, advantages and disadvantages. There are four factors that should be considered when considering a partner in another country: The complementary skills your company will acquire, which can be used later when resuming business. Another factor is the culture of the other country; If your company's corporate culture is not compatible with that of the importing partner, there is a good chance that your product will not be successful when entering this new market. (Gómez Palacio, 1985) Furthermore, when dealing with a new country, you must have compatible goals, that is, you must set goals that are possible to achieve. Export your productLocal officeThere are different ways to export your product to another country. One of these methods is to establish a local office in the country in question, i.e. the exporter establishes a local presence through a representative or branch, rents office space and hiring staff, which may be as few as one person. The benefits of establishing a local office are greater control over marketing and distribution, you have direct contact with customers, improved market credibility with customers and you have access to local venture capital. (Carroll, 1999) However, there are also some disadvantages, for example, sometimes the cost of setting up an office is higher than 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 PR..