Before you decide to expand your business on the international markets you should think about the reasons that drive you to export abroad, as well as the factors that encourage this phenomenon and how to undertake this path.
Companies decide to sell abroad for three main reasons:
- To respond to “spot” business opportunities
- In reaction to the internal market context
- To pursue business objectives
Each behaviour corresponds to a different approach, respectively: Passive, Reactive, Active
The first approach is clearly undergone, not strategic, short-term and unaware. The second is a reaction to increasing issues, it is not enough strategic, late and not optimal.
Active approach is the best choice. Is informed, strategic and forward-looking. The company chooses to export abroad in order to achieve business objectives.
Selling abroad directly or indirectly?
It provides the first-person management of the foreign activities and the market relations (direct contact with the target market, interaction and direct negotiation with the buyers, sales network: agents, subsidiaries, internal export manager, etc.)
It provides to delegate the study of the most receptive international markets to specialized internationalization companies, as well as the product selling on the foreign market and the management if the relationships between customers and buyes, in addition to a technical and commercial support.
Indirect export is definitely more profitable, because the companies working in outsourcing have a greater competence in: market analysis, promotional activities, selling and relationships with foreign buyers, distribution logistics and after sales support.
It represents the most common attitude among the small and medium entreprises, because it doesn’t require big investments. You rely on the advanced expertise of companies that operate since years in the internationalization sector, and which, for these reason, have available a consolidated and trusted network abroad.
What can EGO do for you?
To be successful on foreign markets, you must trust in your business, have clear goals (product, process, markets), have a proper internal organization, and economic resources to face a the eventuality of an increasing production.
To establish yourself outside the domestic market you should adopt a business model suited for the new markets and a working attitude.
Appropriate quality/price ratio (certainly different from the internal market)
Adjustment to the destination market laws
Appropriate technical and managerial skills
Possibility to support the required investments in appropriate times
Knowledge of the target markets
Well-defined market objectives; choose of the best strategy for approaching the new markets and be operative.
In addition, EGO offers to italian small and medium enterprises:
- Proper and qualified know-how
- Analyisis of the company’s internal organization and advice on the products most likely to be successful on the foreign markets
- Selection of the most interesting and receptive markets
- Support by our team for the entire duration of the buesiness relationship