5 keys for internationalization Speaker: Pablo O. Gómez Director OFTEX firstname.lastname@example.org
1.- Are we prepared to export?2.- Selection of foreign markets3.- Selection distribution channels4.- Five Risks5.- Where to find information? Tools.
1.- Are we prepared to export? The Company. – Financial means, solid national market – Production Capacity. – Fulfillment of commitments. – Training of the personnel. – Involvement of the Directive Board.
1.- And our product/service/business model? Is it prepared to be exported? Is it competitive? (Did the sales volume / return increase within the last 3 years? Does it have added value? Does it have something special that makes it different?) - Can it be adapted to the Target Market? (product, price, distribution channel y promotion)
Adaption to make it simple to the customer! Logistics. INCOTERMS. Customs duties. Languages and Culture. Promotion. Payment terms. Personal contact. Samples. First orders.
2.- Selection of Target Markets by: - Proximity in kms (transport costs). - Cultural Proximity. - Language. - Size and Growth (Population and consum) - Wealth per inhabitant (per capita GDP) - Tariff barriers - Non-tariff barriers
2.- Selection of Target Markets by (cont.): - Spanish Export Volume to the Target Country. - Export Volume to the Target Country from foreign competitors. - Risk quote of the country: Cesce, The Economist, Coface rating. - Number of Spanish banks in the country - Number of trade fairs for our sector. - Number of state-owned commercial offices and chambers of commerce.
3.- Selection of distribution channel. - Importer - Distributor - Final customers - Commercial Agents - Piggy-back
3.- Selection of distribution channel.Profile of the Importer-distributor (partner): Experience in the sector. Age of company. Size of the company: Volume of turnover. Number of employees. Number of persons in the commercial staff (intern + extern). Covered Territory. Products that are distributed. Type of customer (wholesaler, retailers or final customers). Segmentation of customers. Margins to work with. Solvency.
3.- Selection of distribution channel.Profile of Agents: Experience in the sector. Age. Sales Volume. Number of subagents. Number of products/brands that he/she represents (national or foreign). Names. Are they complementary to ours? Covered territory. Type of customers (wholesaler, retailers or final customers). Some names. Segmentation of customers. Commission basis he/she works with.
4.- Risks of exportation (CDTRI): Payment Currency Transport Civil Responsability Non-fulfillment of comitments
5.- Tools. Where to find information?-Survival Kit for exporters.
5.-Tools. Where to find information (cont.)www.kompass.com data base of companieswww.hemscott.com data base of companies RUwww.iucab.nl/nl commercial agentscomercialeswww.camaras.org (internationalization, information forinternationalization) online GuidesFuther: (converters, translators, maps, time zones,temperature, logistics, Economy newsletters, etc.)