basic-guide-to-exporting_Latest_eg_main_086196

All U.S. businesses have many ways to compete in international markets, including:• How the product is positioned in a specific market• The advantage of the “Made in the USA” brand• Help from the GEE, including government export promotion services• Excellent customer service or some other competitive advantage that has little to do withwhat is being sold but how it’s sold• Free trade agreements or foreign currency exchange fluctuations that cause competitors’products to be more expensiveFinally, your product may have export potential even if sales are declining in the U.S. market.Sizable export markets may still exist, especially if the product once did well here but is nowlosing market share to more technically advanced products. Other countries may not need stateof-the-arttechnology and may be unable to afford more sophisticated and expensive products.Assessing Your Company’s Export ReadinessExport-ready companies possess certain qualities that increase the likelihood that their exportingefforts will be successful. Answering these important questions about how exporting will enhanceyour company’s goals can help you determine your company’s export readiness:• What does your company want to gain fromexporting?• Is exporting consistent with other company goals?• What demands will exporting place on yourcompany’s key resources, management andpersonnel, production capacity, and financing, andhow will these demands be met?• Are the expected benefits worth the costs, or wouldcompany resources be better used for developingnew domestic business?For a more in-depth assessment of whether yourcompany is ready to export, it’s a good idea to take theexport readiness assessment, available atexport.gov/begin/assessment.asp. You’ll be askedto consider issues such as your company’s currentoperations, attitudes, and products.Qualities of an Export-Ready Company• Have commitment from ownership and areprepared to fund exporting activities• Understand the added demands internationalbusiness can place on key resources• Have realistic expectations regarding return oninvestment from international activities• Are prepared to modify products and servicesby market as well as provide training andafter-sales service• Be willing to work with government exportpromotion agenciesFor a more theoretical assessment, it is helpful to examine some of the motivational andorganizational factors behind your company’s decision to export. Thinking about these factors willhelp you decide if your company and your product are ready to export.Chapter 2: Developing an Export Strategy15