Displays the description of the model of export consortia in a perspective of internationalization of companies. Additionally shown several cases of Export Consortia in Latin America, developed under the auspices of UNIDO

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The Internationalization of
Firms and Export Consortia
Carlos López Cerdán Ripoll
UNIDO International Expert
October, 2013
Belize

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CONTENT
1. Internationalization means
2. The internationalization of companies
3. Export Consortium as an instrument of
internationalization
4. Cases of Export Consortia at a glance

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INTERNATIONALIZATION CONCEPT
Internationalization means.
Internationalization is a "cultural process" by
which companies develop capabilities to do
business in different countries, using local
resources, both material and human.

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INTERNATIONALIZATION CONCEPT
Why process?. Why cultural?
u Process: Because normally develops through successive stages
of advancement.
ü Some businesses internationalized born.
ü Not only is selling abroad (export). Also distributing, purchasing,
manufacturing
ü etc..
u Cultural: The word "culture" is used in the context of the directive
function is primarily to get people to address organizational goals.
To perform this function, the executives not only need to know
how to address them, but also the motivations of those who must
do..
ü The motivations of clients and executives are rooted in cultural
processes: (religious, sociological and climate. Quite different
depending on the area of the globe).

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INTERNACIONALIZATION CONCEPT
It is an active process: Directed and driven.
u Desire for growth.
u Economies of scale, etc..
But it is also passive: Globalization invades us.
u Global trade liberalization progresses.
ü Competitors pressure us.
ü Logistics progress.
ü Communications are cheaper, etc...
u Training and culture progresses.
ü Languages​​, travel, etc..
ü Extensive training University.
ü Cultural exchanges, etc..

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2.- INTERNATIONALIZATION PROCESS
Global Activity
Productive Subsidiaries Abroad
Commertial Subsidiaries Abroad
Commertial Representatives Abroad
Consolidated Export
Sporadic Export
Someone Buys From Abroad
National Market Consolidation
Local Activity

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2.- INTERNATIONALIZATION PROCESS
MODIFIED UPPSALA THEORY
Global
Company
Global Operations
Production plants abroad
Commercial branches abroad
Search trade representatives
Exports consolidated
Domestic
Exports sporadic
Company
Someone buys abroad
Consolidation in the domestic market

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BRIEF
Ø Internationalization process is:
•
•
Progressive: By steps and nonuniform.
Where an error in the process of
moving takes years of stagnation.

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ADVANCE KEY FACTORS
Ø
Ø
Early stages: the delegation ability.
u
The psychic distance.
u
The cross cultural motivations.
§ Executives.
§ Customers.
§ Suppliers.
Advanced stages: Strategic Planning.
u
The nature of strategic decisions.
u
Depletion of business models.
u
The ability to influence the future.

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INTERNATIONALIZATION PROCESS
Global Activity
Productive Subsidiaries Abroad
Commertial Subsidiaries Abroad
AN UNSTOPPABLE PROCESS¡¡¡
Commertial Representatives Abroad
Consolidated Export
Sporadic Export
Someone Buys From Abroad
National Market Consolidation
Local Activity

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3.- WHY INTERNATIONALIZE
Ø Very small local market.
Ø Some companies born with exporting
vocation.
Ø Market risk diversification.
Ø Etc.

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CHALLENGES FOR INTERNATIONALIZATION
Large companies internationalize themselves,
however sometimes deplete their business
models, or make mistakes and get stuck in one
of steps of the process ...
SME’s do not have the skills and abilities to
begin the process alone because they face
transaction costs and learning and need help…

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DIFFICULTIES OF SME’s FOR EXPORT
FOREING MARKETS
NECESSARY CONDITIONS:
•
•
•
•
•
•
•
•
•
•
All the necessary equipment;
Production capacity and working capital;
Technology to meet quality specifications;
Compliance with technical standards, environmental and legislative;
Export infrastructure;
Knowledge to do market research;
Effective marketing techniques;
Communication skills and negotiation;
Administrative capacity and administrative facilities;
Knowledge of export incentives.
SME’s

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2.- INTERNATIONALIZATION PROCESS
MODIFIED UPPSALA THEORY
Global
Company
Global Operations
Production plants abroad
Commercial branches abroad
Search trade representatives
Exports consolidated
Domestic
Exports sporadic
Company
Someone buys abroad
Consolidation in the domestic market
Export
Consortium

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WHAT IS AN EXPORT CONSORTIUM?
Ø An Export Consortium is a voluntary alliance of
companies with the aim of promoting goods and
services of its members abroad and facilitating the
export of their products through joint actions.
Ø An Export Consortium can be considered as a
machine for export promotion offering specialized
services to its members.

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EXPORT CONSORTIUM GRAPHIC MODEL
FOREING MARKETS
EXPORT CONSORTIUM
Firm A
Firm B
Firm C
Firm D
Firm E

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EXPORT CONSORTIUM GRAPHIC MODEL
CASE OF AGRICULTURAL & LIVESTOCK SECTOR
FOREING MARKETS
EXPORT CONSORTIUM
510 Agricultural Producers
Producer
Association
Cooperative
300
Producers
80
Producers
Producers
Network
30
Producers
Producer
Association
100
Producers
Firm

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EXPORT CONSORTIUM GRAPHIC MODEL
President
Executive
Director
(Manager)
designates
Board of
Directors
Board of
Auditors
General Meeting
Firm A
Firm B
Firm C
Firm D
Firm E

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EXPORT CONSORTIA DOES AND DONT’S
DONT’S
DOES
• In an Export Consortium
companies do not merge;
• Companies create a strategic
alliance to export retaining their
individuality to operate in the
domestic market;
• It is not a cooperative. Although
both can be considered a type of
association;
• In the case of a consortium,
however, common weaknesses are
the core of members joint;
• Not a Guild or Association;
• Its purpose is to promote exports of
their partners;
• Not a Club where members
exchange ideas to export.
• Is Business Network which operates
based on joint projects.

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EXPORT CONSORTIA TAXONOMY
TYPES
Single sector;
PROMOTIONAL CONSORTIA
Multi-sector;
Single products;
Closely related
products;
SALES CONSORTIA
Members from several
regions;
Targeting one market;
Targeting global market

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PROMOTIONAL EXPORT CONSORTIA
United
States
Canada
SERVICES PLATAFORM
FOR COMPANIES: PROMOTION
PROGRAMMING, ETC
PRODUCTS
Firm
A
Middle
East
Europe
Firm
B
Firm
C
Firm
D
Firm
E
PRODUCTION IN EACH COMPANY
Firm
F

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PROMOTIONAL EXPORT CONSORTIA
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Service platform for businesses;
Structure with logistics and sales capacity;
General manager, commercial and logistics;
Product showrooms:
Sales for each business line;
Vendors by each company;
Earnings per line per company;
Firm share the expenses;
Individual brands can coexist;
There may be an umbrella brand.

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SALES EXPORT CONSORTIA
Whole
salers
Retailers
PRODUCTS
MARKETING
SALES
PRODUCTS
Firm
A
Private
Labels
Boutiques
Firm
B
Firm
C
Firm
D
Firm
E
PRODUCTION IN EACH COMPANY
Firm
F

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SALES EXPORT CONSORTIA
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Unique collection of products;
Portfolio of products from the target market;
A shared private label;
Forward integrates;
Closer to customers;
A company that generates its own profits;
A company that has a lasting business;
It is necessary to walk. There is nothing from night to morning.

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ADVANTAGES OF EXPORT CONSORTIA
Ø Risk and cost reduction;
Reduce promotional cost abroad for the firms;
§ Reduce fix export costs;
§ Reduce the risk of exporting and of exploring new business
opportunities abroad;
Access to new markets and major orders;
§ Export diversification and penetration of inaccessible regions or distant
§ Better knowledge of the market and lower sales-related risks
Improved profitability. Improve the profit margins of member firms through
a variety of savings, the development of an export strategy and the
achievement of stable exports;
Efficiency gains. By pooling financial and human resources and by
sharing information and experiences, members of a consortium can
improve and intensify their promotional activities abroad;
Knowledge accumulation;
Better access to potential funding;
Firms maintain their juridical independence and managerial autonomy.
§
Ø
Ø
Ø
Ø
Ø
Ø

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PROFIT CHAIN
An Export Consortia program generates
benefits for the following stakeholders:
n Firms.
n Public actors.
n Private organizations.

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FIRMS
§ Increase in export sales.
§ Increase and diversification of the export supply of firms.
§ Increased promotion and logistics capacity of the exporting
companies.
§ Access to a greater number of customers and markets
abroad,that it would be impossible to achieve individually by
companies.

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PUBLIC ACTORS
n Harnessing the potential exporter, vocation and comparative
and competitive advantages of the region.
n Increased visibility of the region as an environment in export-
oriented growth.
n Strengthening fiscal fundraising by promoting the mass of
exporting companies in the state.
n Generation and preservation of jobs in the export sector.
n Differentiation from other regions through the promotion of a
culture of local export.

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PRIVATE ORGANIZATIONS
§
Strengthening and increasing the export capacity of its members
through a successful model as Export Consortia.
§
Loyalty of the members, in an environment of no compulsion, to give
member companies a new scheme to promote competitiveness and
Export Consortia.
§
Empowering the affiliation of new firms through the positive effect
produced by Export Consortia on its members.
§
Differentiation from other business organizations to include in their
portfolio of services a innovative product which does not exist in the
market, such as the development of Export Consortia.

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SINTHESIZING
Export Consortia are a promotional machine for
the exports of SME’s with export supply and
financial constraints to promote their products and
services intensively in foreign markets

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Export Consortia are a simple and flexible
instrument, adaptable to any development strategy
and applicable to different situations and all
sectors with export supply.

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CASES OF EXPORT CONSORTIA AT A GLANCE
Peru:
28 Developing Export Consortia in 4 regions benefiting more than 150
companies in 14 sectors, integrated support platform for 30 coordinators, 7
national consultants (tutors) and a National Coordinator. Bases for design of a
fund incentive Export Consortia.
Uruguay: 3 Export Consortia operating in 3 industry sectors and 30 SME networks;
enactment of a Law in Support of Export Consortia in 2008).
Tunisia:
Export Consortia 10 operating and 10 more in development, more than 80
companies as direct beneficiaries in six sectors.
Morocco: 17 Export Consortia in 6 regions; Over 100 firms directly in 8 sectors, a financial
fund to support Export Consortia.
Jordan: 2 Export Consortia and five SMB networks. More than 30 firms directly into 4
sectors.

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CASES OF EXPORT CONSORTIA AT A GLANCE
Mexico:
a)
Jalisco20 Export Consortia, technical platform, benefiting more than 100 companies
in 14 industries, preserving 5,000 jobs. Regional Coordinator. Consortia creative
industries.
b)
Zacatecas: 7 Export Consortia in 4 industrial sectors.
c)
Distrito Federal: 4 Export Consortia in 4 Industrial Sectors.
Costa Rica:
Region Brunca. 3 Export Consortia operating in 3 sectors: agribusiness, fresh
produce and tourism; Creation of the basis for the enactment of a Law on Support for
Consortia.
Ecuador:
5 Export Consortia.

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MEXICAN CASES AT A GLANCE
Mexico:
a)
Jalisco20 Export Consortia, technical platform, benefiting more than 100 companies
in 14 industries, preserving 5,000 jobs. Regional Coordinator. Consortia creative
industries.
b)
Zacatecas: 7 Export Consortia in 4 industrial sectors.
c)
Distrito Federal: 4 Export Consortia in 4 Industrial Sectors.

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AGRIFOOD
Hot peppers Export Consortium
120 producers of chilies
of the state of Zacatecas,
grouped across 9
producers associations.

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AGRIFOOD
Hot peppers Export Conortium
The first shipment of 19 tons of chili, mole and corn leaves
reach the food wholesale in Los Angeles, California. USA

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Appareil Export Consortium
15 apparel manufacturers
knitted and woven
clothing’s in Zacatecas,
Mexico.

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COSTA RICA CASES AT A GLANCE
Costa Rica:
Region Brunca. 3 Export Consortia operating in 3 sectors: agribusiness, fresh
produce and tourism; Creation of the basis for the enactment of a Law on Support for
Consortia.

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AGRO-INDUSTRIAL
CONSORTIUM
REGION BRUNCA 2013

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The consortium is comprised of seven Tourism Tourist Enterprises Brunca Region. Costa Rica
The members of the Consortium are:
•
Jardín Botánico Wilson & Estación Biológica Las Cruces ( OET) emilce.ramirez@ots.ac.cr/
www.ots.ac.cr Tel.(506) 27734004 San Vito, Coto Brus.
•
Bahía Aventuras bahia.aventuras@gmail.com Uvita, Domical.Costa Rica
•
Rancho La Botija/ Hotel de Montaña (506) 2770-2146 y (506) 8874-0967 info@rancholabotija.com
www.rancholabotija.com La Bonita de Rivas, San Isidro del General, Costa Rica.
•
Asociación de Mujeres Organizadas de Biolley (ASOMOBI) asomobi@yahoo.com, Buenos
Aires,Puntarenas, Costa Rica.
•
Agro San Miguel Adventures. agrosanmigueladventures@yahoo.com /
www.agrosanmigueladventures.com (506) 27714119 Zapotal de San Pedro, Perez Zeledon, San Jose,
Costa Rica
•
Camping el Chaman chamanran4@hotmail.com 27438160 / 27438161.
campingelchaman@gmail.com info@campingelchaman.com. www.campingelchaman.com
Parque
Nacional Marino Ballena, Sector La Colonia, Uvita, Puntarenas, Uvita, Puntarenas, Costa Rica.
•
Ecoaventuras kuasran. saribu2002@yahoo.com Boruca Puntarenas, Costa Rica.

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¡ Over 400 Followers !

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Fresh Products Consortium
Región Brunca
2013

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Allied Firms
Unión Zonal
ASOFRUBRUNCA
Distribuidora de Frutas Exóticas
• Federación de Centros Agrícolas
Cantonales
• AFAPROSUR
• Frutos y Raíces Tropicales
• COOPEASSA RL

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LAW PROJECT (MEIC)

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PERUVIAN CASES AT A GLANCE
Perú:
28 Developing Export Consortia in 4 regions benefiting more than 150
companies in 14 sectors, integrated support platform for 30 coordinators, 7
national consultants (tutors) and a National Coordinator. Bases for design of a
fund incentive Export Consortia.

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FRÍO AÉREO
Caso de Eficacia y Optimización
Logística

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Muyu
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URUGUAY CASES AT A GLANCE
Uruguay: 3 Consorcios de Exportación operando en 3 sectores industriales y 30 redes de
PyMES; Promulgación en 2007 de una Ley de Apoyo a los Consorcios de
Exportación.

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Phyto Uruguay Consortium

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SERVICES OFFERED
§ Technical Assistance Projects:
§ Advice and technical support for design, management and
evaluation of Export Consortia Programs.
§ Capacity building and training of promoters of Export Consortia.
(public and private sectors)
Encourage development legal and financial incentive systems for
the support of Export Consortia.
§ Development Methodologies, Manuals, Training Packages.
§ Organization Meeting of Experts to share international best practices in
the field.
§ Global Courses & Regional Courses.
§ Toolboxes (analysis, management, monitoring and evaluation).

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For more information contact:
Carlos López Cerdán Ripoll
UNIDO International Expert
E-mail: clcripoll@yahoo.com