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Steven Murray Are You Ready To Go Global


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Steven Murray Are You Ready To Go Global

  1. 1. Why Go Global Preparing to Think Globally Are You Ready to Go Global?
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  6. 6. LATIN AMERICA Population Internet Users, Latest Data % Population % Users Use Growth COUNTRIES / REGIONS ( Est. 2007 ) ( Penetration ) in Table ( 2000-2007 ) Argentina 40,301,927 16,000,000 39.70% 13.00% 540.00% Brazil 190,010,647 42,600,000 22.40% 34.70% 752.00% Chile 16,284,741 7,035,000 43.20% 5.70% 300.30% Colombia 44,379,598 10,097,000 22.80% 8.20% 1050.00% Costa Rica 4,133,884 1,214,400 29.40% 1.00% 385.80% Mexico 108,700,891 23,700,000 21.80% 19.30% 773.80% Panama 3,242,173 264,316 8.20% 0.20% 487.40% Peru 28,674,757 7,324,300 25.50% 6.00% 193.00% Venezuela 26,023,528 5,297,798 20.40% 4.30% 457.70% TOTAL 552,296,094 122,796,514 22.20% 100.00% 590.10%
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  11. 11. Why Look at International Markets Now <ul><li>U.S. represents only 5% of world market. </li></ul><ul><li>Barriers and costs to selling internationally are much lower. </li></ul><ul><li>Distance between you and your customers is shrinking. </li></ul>
  12. 12. International Markets – The Business Decision <ul><li>Growing need for new markets and new customers </li></ul><ul><li>Increase sales volume </li></ul><ul><li>Smooth out your business cycle </li></ul><ul><li>Diversify customer base </li></ul><ul><li>Increase visibility </li></ul>
  13. 13. Key Concepts in Going Global <ul><li>Language </li></ul><ul><li>Countries </li></ul><ul><li>Culture </li></ul><ul><li>Currencies </li></ul>You need to be able to step outside your traditional boundaries
  14. 14. Who is Going Global? <ul><li>97% of U.S. Exporters are SMEs </li></ul><ul><li>2/3rds of those Exporters have less than 20 employees </li></ul><ul><li>63% of SMEs sell to only to 1 Market </li></ul>Small to Medium Sized Companies
  15. 15. Leading Destinations for PA Pr0ducts 1. Canada $9.2B 5. China $1.29B 3. Belgium $1.4B 4. UK $1.3B 2. Mexico $2.2B 6. Japan $1.26B 7. Germany $1.22B 8. Netherlands $.77B 9. South Korea $.659B 10. Australia $.653B
  16. 16. Globalizing Your Website Why Go Global? Preparing to Think Globally Are You Ready to Go Global?
  17. 17. Are You Ready to Go Global? <ul><li>Develop an Export Plan/Strategy </li></ul><ul><li>Develop a Marketing Plan </li></ul><ul><li>Where to Turn to for Assistance </li></ul>
  18. 18. The 10 Most Common Mistakes Made By Exporters <ul><li>Failed to develop an international marketing plan before beginning to export. </li></ul><ul><li>Lacked total commitment of top management in the initial stages of exporting. </li></ul><ul><li>Selected overseas representatives too quickly without thorough investigation. </li></ul><ul><li>Chased orders around the world instead of using a systematic marketing plan. </li></ul><ul><li>Neglected new export customers when their domestic market was booming. </li></ul><ul><li>Failed to treat international and domestic representatives on an equal basis. </li></ul><ul><li>Refused to modify products to meet foreign regulations and local preferences. </li></ul><ul><li>Did not print sales, service and warranty messages in local languages. </li></ul><ul><li>Refused to use export management companies (EMC) in less promising markets. </li></ul><ul><li>Failed to consider licensing or joint venture agreements in more restrictive markets. </li></ul>
  19. 19. Developing An Export Plan/Strategy <ul><li>Determine Your Products Export Potential </li></ul><ul><li>Assess Your Company’s Export Readiness </li></ul><ul><li>Create a Written Export Plan </li></ul>
  20. 20. Determining Your Products Export Potential <ul><li>Examine the success of your products/services domestically </li></ul><ul><li>Examine the important unique features of your products/services </li></ul><ul><li>Product Life Cycle </li></ul>
  21. 21. Assessing Your Company’s Export Readiness <ul><li>Ask yourself…. </li></ul><ul><li>What does my company want to gain from exporting? </li></ul><ul><li>2. Is exporting consistent with other company goals? </li></ul><ul><li>3. What demands will exporting place on the company’s key resources and how will these demands be met? </li></ul><ul><li>4. Are the expected benefits worth the cost, or would the company resources be better used for developing new domestic business? </li></ul>
  22. 22. Management and Company Review in Detail <ul><li>Management Objectives </li></ul><ul><li>Experience </li></ul><ul><li>Management and Personnel </li></ul><ul><li>Production Capacity </li></ul><ul><li>Financial Capacity </li></ul>
  23. 23. Management Objectives <ul><li>What are the company’s reasons for pursuing export markets? </li></ul><ul><li>How committed is top management? </li></ul><ul><li>What are managements expectations for the export effort ? </li></ul><ul><ul><li>Time frame </li></ul></ul><ul><ul><li>Return on Investment </li></ul></ul>
  24. 24. Experience <ul><li>Past lessons from export attempts? </li></ul><ul><li>Where have you exported to and from where are you receiving leads? </li></ul><ul><li>Are domestic customers shipping your products overseas? If so, where? </li></ul><ul><li>Who are your main competitors – domestic and foreign? </li></ul>
  25. 25. Management and Personnel <ul><li>Existing in-house expertise? </li></ul><ul><li>Who is responsible for the export department’s organization and staff? </li></ul><ul><li>Available time to devote to international? </li></ul><ul><li>Who will follow through after the planning is done? </li></ul>
  26. 26. Production Capacity <ul><li>How is present capacity being used? </li></ul><ul><li>Will export orders hurt domestic sales? </li></ul><ul><li>Are there fluctuations in the annual work load? </li></ul><ul><li>What minimum order quantity is required? </li></ul>
  27. 27. Financial Capacity <ul><li>How much capital can be committed to export production and marketing? </li></ul><ul><li>What level of export department operating costs can be supported? </li></ul><ul><li>Competition from other new developments or efforts? </li></ul><ul><li>By what date must the export department pay for itself? </li></ul>
  28. 28. Developing an Export Plan Review <ul><li>Create a written plan </li></ul><ul><li>Clearly defined goals, benchmarks, and dead lines </li></ul><ul><li>Build in your learning curve </li></ul><ul><li>Remember that an export plan is a living documents </li></ul><ul><li>Keep it as simple as it needs to be </li></ul>
  29. 29. Developing a Marketing Plan <ul><ul><li>Why? </li></ul></ul><ul><li>Help you to develop a thoughtful and targeted approach exploring new markets </li></ul><ul><li>Determine the best possible markets for your products or services </li></ul><ul><li>Reduces headaches and surprises. </li></ul>
  30. 30. Identify Marketing Opportunities & Constraints Abroad <ul><ul><li>Screening Potential Markets </li></ul></ul><ul><ul><li>Obtain export statistics that indicate product exports to various countries. </li></ul></ul><ul><ul><li>Identify 5 to 10 large & fast growing markets for your company’s product or service </li></ul></ul><ul><ul><li>Identify some smaller but faster-emerging markets that may provide some ground-floor opportunities </li></ul></ul><ul><ul><li>Target 3 to 5 of the most statistically promising markets for further assessment. </li></ul></ul>
  31. 31. Assessing Targeted Markets <ul><ul><li>Examine trends for your products that could influence demand </li></ul></ul><ul><ul><li>Look at the competition </li></ul></ul><ul><ul><li>Look at factors affecting marketing & the use of the product in each market </li></ul></ul><ul><ul><li>Identify any foreign barriers or U.S. barriers for exporting your product to a market </li></ul></ul><ul><ul><li>Identify any U.S. or foreign government incentives that promote exporting of your product </li></ul></ul>
  32. 32. Sources of Market Research <ul><li>What Your Company Already Knows . </li></ul><ul><li>Where have you received unsolicited inquiries? </li></ul><ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>Industry Publications </li></ul><ul><li>Trade Shows </li></ul>
  33. 33. Sources of Market Research <ul><li> </li></ul><ul><ul><ul><li>Market Research Library </li></ul></ul></ul><ul><ul><ul><li>Trade Statistics </li></ul></ul></ul><ul><ul><ul><li>International Trade Show Directory </li></ul></ul></ul><ul><li> countryname/en </li></ul><ul><ul><ul><li>Provides reports on specific country trade </li></ul></ul></ul><ul><ul><ul><li>topics </li></ul></ul></ul><ul><li>Make it easy on yourself & just ask an export assistance provider for help! </li></ul>
  34. 34. Get Export Advice <ul><li>What Can Export Assistance do for me? </li></ul><ul><ul><li>Help develop your export strategy </li></ul></ul><ul><ul><li>Perform the tedious task of market research for you </li></ul></ul><ul><ul><li>Help you find trade contacts </li></ul></ul><ul><ul><li>Help you promote your products in foreign markets </li></ul></ul><ul><ul><li>Check the status of a foreign company that is wants to buy from/represent you </li></ul></ul><ul><ul><li>Match your company with appropriate buyers/sales reps/distributors in foreign markets </li></ul></ul>
  35. 35. Marketing Plan, The End Result <ul><li>A ranked list of markets that represent the best markets for your products in terms of: </li></ul><ul><ul><li>Demand </li></ul></ul><ul><ul><li>Openness for U.S. products </li></ul></ul><ul><ul><li>Cost of doing business </li></ul></ul><ul><ul><li>Your ability to support marketing and sales development </li></ul></ul><ul><ul><li>Other factors that make sense to your company </li></ul></ul><ul><li>An outline of how you will approach the market </li></ul><ul><li>Benchmarks and short, medium, and long term goals/obejectives </li></ul>
  36. 36. Export Assistance in Your Area <ul><li>U.S. Commercial Service </li></ul><ul><li>Tel: 412 644-2800 </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Web: </li></ul><ul><li> </li></ul>North Central Planning and Development Commission Tel: 814 773-3162 Email: [email_address] Web: Center for Trade Development, Commonwealth of Pennsylvania Tel: 717-787-7190 Email: Web:
  37. 37. How to contact us… <ul><li>425 Sixth Avenue, Suite 2950; Pittsburgh, PA 15219 </li></ul><ul><li>Tel: 412 644-2800 </li></ul><ul><li>Fax: 412 644-2803 </li></ul><ul><li>Email: [email_address] </li></ul><ul><li> </li></ul>