EXPORT STRATEGIES
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When it comes to seeking foreign markets and developing an Export Strategy, there is one fact that stands above all others; no two strategies will ever be the same. So what works for one company may not work for your company. Identifying foreign markets, establishing relationships and structuring agreements are the foundation of a successful Export Strategy. It is common to see companies make fundamental mistakes that greatly affect their potential for longevity and future profitability.
The fact is, when it comes to establishing a relationship with a foreign company, you have to get it right the first time. If a potential partner is not properly qualified, or if a relationship is established with poor agreements, it is like constructing a building on a faulty foundation.
One of the first things that the ITB Export System™ does is assign an Industry Specialist to the Client. Then we begin the process of creating an extensive 'Client Profile'. In essence, we are peeling the company back like an onion and looking for potential. But more than this, we are focusing on adapting this potential to foreign markets. In some cases this requires modifying the company’s product line to meet the needs of a target market. In other cases, we are able to identify a similar new product line that offers potential. In both of these cases, this process opens the door to new business. Once this 'Client Profile' is completed, we use this information to develop a very unique 'Global Access Plan' that sets everything into motion.
The ITB Global Access PlanTM
A major part of the 'ITB Global Access PlanTM' requires ITB to prepare the company for foreign marketing by translating and culturally adapting information. This is a very important component of foreign marketing and it is an area that is seriously misunderstood by the majority of companies. Finding a company outside your home country that is interested in your products is relatively easy to do when it comes right down to it, but there is so much more involved in developing a quality business relationship. Most companies start searching for a partner by posting an ad on one of the many International Trade Sites. It is very common to see companies pursue business arrangements in foreign markets simply because a certain person or business was one of the few to respond to their online ad. There was interest and they were able to speak the same language, so they pursued a business relationship. However, we would never dream of using this formula as a guide for business relationships inside your home country, but this is exactly the way most companies pursue business relationships Internationally.
Most people understand the value of what it means to work closely with a firm that has experience in complex business matters. This is something we do all the time.
When a Legal matter comes up, we seek the direction from an Attorney. When we want to sell a piece of property, we find a good Real Estate Agent to handle the transaction. Once the property has been sold, we work with an experienced Title Company. The reason we do this is because we recognize that it requires specialized experience and it is this experience that helps us avoid fundamental mistakes that can be extremely costly and time consuming.
But when it comes to the incredibly difficult area of International trade, most businesses go into it blindly because they don’t have any other option!
When a company decides to pursue business Internationally, there are many potential problems that they have never had to face before.
• Where do I begin to search for customers for our products?
• Do my products meet the needs of that country, or will I need to modify them in some way?
• How do I communicate?
• When I find a potential partner, what type of Agreement should govern this relationship?
• Should it be a simple buy sell arrangement or should it be some type of Distribution Agreement?
• How do I know I am legally protected?
• Do I really know what their reputation is?
• How do I guarantee that I’ll be paid once I ship my product?
These are just a few of the Issues that can be very challenging.
Inexperience can mean the difference between success and failure
and it is imperative that a company gets through these obstacles and eliminates risk.
The ITB Export System™ takes your company by the hand and leads you through a process by providing a system that focuses on every core component of exporting.
It takes all the guesswork out and streamlines the entire process!
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