Export NowFive Keys to Entering New Markets

Frank Lavin, Global CEO of ExportNow.com

I. Why and What: Setting your Export Goals

II. How: Five Keys to Entering New Markets

III. When: Making your Export Strategy Happen

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I. Why and What: Setting your Export Goals

Export Now

I. Why and What: Setting your Export Goals

Where’s the World Going?

Why has the pace of economic change

accelerated in recent years?

Three billion new customers1

The death of distance2

The erosion of trade barriers3

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What does this mean?

I. Why and What: Setting your Export Goals

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It has never been easier for a foreign competitor to

enter your market, and it has never been easier for

you to enter a foreign market.

Growth of world trade

What it means to you?

The business impact

1. Every company needs to think about exporting 2. This means a shift from vertical skills to

horizontal skills3. Your business needs to develop a culture of

flexibility and innovation

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I. Why and What: Setting your Export Goals

Self awareness is a key business issue

MotivesDirect and indirect

costs

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Where are You Going?

I. Why and What: Setting your Export Goals

Where are You Going?

I. Why and What: Setting your Export Goals

• To learn and experiment

• To broaden the product slate

• To diversify markets

• To improve scale (MOTS)

• To deny territory to the competition

Why Export?

Motives

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I. Why and What: Setting your Export Goals

II. How: Five Keys to Entering New Markets

III. When: Making your Export Strategy Happen

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II. How: Five Keys to Entering New Markets

Export Now

II. How: Five Keys to Entering New Markets

A. Country: Pick the Right One

1. Keep it simple: seek proximity and like markets

2. Align goals with capabilities

3. Have an incremental business model

4. Understand trade barriers

5. Do your research

6. Remember the global channels

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Value of the market

Complexity of market

entry

Initial target

Build target

Final target

II. How: Five Keys to Entering New Markets

Remember the global channels

To help companies sell to Chinese consumers

www. .com

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II. How: Five Keys to Entering New Markets

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II. How: Five Keys to Entering New Markets

II. How: Five Keys to Entering New Markets

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B. Customers: How They Differ

You don’t know the customers and they don’t know you

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1. How is your target customer different from your home market customers?

2. What will target customers need before you start selling?

3. Will your proposed product or service offer target customers a superior value proposition?

4. How should you adapt your strategy to deliver competitively superior customer value in your target market ?

II. How: Five Keys to Entering New Markets

C. Competitors: A Different Market

Can your company offer potential customers a competitively distinct

product?

Can your company perform the critical activities needed

to protect a profitable position?

• market segments• competitor positions• unmet consumer needs

• leaders and laggards• value chain• strategic audit

Key issues Key issues

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II. How: Five Keys to Entering New Markets

D. Capabilities: What you Need to Win

Diagnostic skillsLearning organizationSelf-knowledge

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II. How: Five Keys to Entering New Markets

Understand to what

extent your strengths at

home are strengths globally

Start with like-minded customers in export markets

Tailor your export

marketing strategy to target the

same customers

in the export market

Maintain a healthy

paranoia to keep ahead

of competitors

D. Capabilities: What you Need to Win

Diagnostic skillsLearning organizationSelf-knowledge

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II. How: Five Keys to Entering New Markets

Strengths at home

Strengths globally

E. Capability Gap: How to Close it

Established operating position

1

2 Volume

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Joint Ventures

Partnerships

Contract

Support From Head Office

Home Market Advantages

II. How: Five Keys to Entering New Markets

Home Market

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II. How: Five Keys to Entering New Markets

R &D Finance Sales General Corporate Activities

DistributionManufacturing

Country A Country B Country C

I. Why and What: Setting your Export Goals

II. How: Five Keys to Entering New Markets

III. When: Making your Export Strategy Happen

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III. When: Making your Export Strategy Happen

Export Now

III. When: Making your Export Strategy Happen

Resource the Strategy

• How much capital and management time will the strategy require?

• Who will manage the business in the new market?

• How should you decide among the potential candidates?

• How do you formalize this capital and management decision?

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Bridge the Cultural Gap

Pace of business

Gifts

Dress

Punctuality

Friendship

Learning

Credibility

Taste

DetailsTraditional societies

Caution

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III. When: Making your Export Strategy Happen

Bridge the Cultural Gap

How to adjust to a new culture:

• Arrive a day early and observe

• Get expert advice

• Listen and learn

• Don’t fake it

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III. When: Making your Export Strategy Happen

Diagnostic skillsLearning organizationSelf-knowledge

Take Action!

1. Move incrementally 2. Experiment and test markets3. Become a learning organization4. Develop a feedback mechanism5. Be willing to adjust6. Remember Global Channels

Happy Exporting!

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III. When: Making your Export Strategy Happen

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Case Studies

35 case studies from 14 different countries

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Written by Frank Lavin and Peter S. Cohan

Export Now

Export Now

Export Now Team:

Frank Lavin, Global CEO: Frank@exportnow.comJohn Hoover, U.S. CEO: John@exportnow.com

Seth Lavin, Chief of Staff: Seth@exportnow.comClare Malone, Marketing Communications Manager,

Clare@exportnow.com

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