anderson, r business 245 final powerpoint
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EXPORTING AND SELLING HOT TUBS IN
SWEDEN
Hot Spring Portable SpasSelf contained, portable hot tubsMeets California requirements for energy
efficiencyFirst to receive the ENVY (environment
friendly) award in Germany for energy efficiency
Manufactured in Vista, CA by Watkins MFGEstablished in 1977Watkins is part of MASCO Corp., a Fortune 500
Company
Prior to Entering the MarketContact the Seattle U.S.
Export Assistance Center for assistance:Identifying and evaluating
international partnersNavigating international
documentation challengesCreating market entry
strategiesOther export related
guidanceContact Mr. Pru Balatero
with the Small Business Association (SBA) for help with trade finance
Contact one of the many trade organizations in Washington State for additional experience and adviceTrade Development
Alliance World Trade Club Washington Council on
International Trade State of Washington
Department of Community, Trade and Economic Development
Market AnalysisAlthough the Scandinavian countries of Sweden, Finland,
and Norway are well known for saunas, they also love hot tubs
Products sold in Sweden must be of high quality and competitively priced - Hot Spring Spas have one multiple awards for quality and Consumer’s Digest best buy awards for value
Environmentally friendly and energy efficient products are a must in all of Europe – Hot Spring spas have one national and international awards for both environmental compliance and efficiency.
The market appears to be saturated, however, Hot Spring Spas is the world’s number one selling brand and should be able to find a niche in Sweden
Market Entry StrategiesConduct market research to find “niche”
Size & necessary featuresEnergy consumptionCompetitive pricing is important
Locate existing dealers looking to expand their offeringCreate subtle, but informative website that will appeal
to Swedish cultureHighlight Energy efficiencyIdentify length of warrantyAvoid claims for relaxation and family gathering as these
are already knownProduct must be ETL listed for safety
Inventory ManagementProprietary design and technology restrict licensing and
franchisingUse 3M style approach
Build product in US and enter market slowlyWhen demand and revenue meet goals, begin Greenfield
Investment within European UnionEstablish local manufacturing to minimize trade barriers
and transportation costs
Sweden’s Import LawsGoods must be classified prior
to declarationSubmit declaration of goods
Electronic is preferred May use Single Administrative
Document (SAD) Use of an agent is acceptable
and may help processBe prepared to supply
additional documentation Commercial invoice Customs value declaration 5 Freight bill Certificate of origin Packing list
Pay fees Customs duties Value added tax
(VAT) Any other
applicable taxesApply for customs
clearance immediately upon arrival of goods
U.S. Export LawsU.S. export laws are
complex and difficult to navigate
Partnering with an experienced international freight forwarder or the use of a Shippers’ Association would provide freedom from the majority of these issues.
Freight Forwarder optionsNCBFAA.orgFreightGate.comFreightNet.com
Shippers’ Association optionsShippers.orgISASHIP.orgPACBOT.org
Swedish CultureSociety
EgalitarianHumbleFamily orientedNot flashy or ostentatious
BusinessFlat management styleConsensus approach to decisions
Takes time Gives value to all opinions
Proper attire is semi formal to business casual
Political ConcernsConstitutional Monarchy with a parliamentary systemStable democratic style of governmentElections are held every four years for major positionsJudicial system does NOT rely on judicial precedent as in
the U.S.The Swedish government’s official stance is that the power
comes from the people and every one has the same rights and opportunities including free speech, freedom of the press, and freedom of self expression
Well managed economy with sound fiscal policy and tight control over their money supply. Sweden has been able to keep the consumer price index to generally less than two percent annual growth
Geography of Sweden• Slightly larger than the
state of California • Located in northern
Europe between the country of Norway and the Gulf of Bothnia
• Northern most quarter of the country falls within the Arctic Circle.
• Two zone climate• subarctic climate in
the north• temperate climate in
the south
• Terrain is generally flat with some gently rolling hills, with mountains to the west along the border with Norway
• Approximately 2000 miles of coastline
ConclusionHot tubs fit perfectly into the family oriented
lifestyle that is the Swedish CultureThe award winning, energy efficient and
innovative designs from Hot Spring Spas should easily capture the imagination of the high technology society in Sweden
Even though the market is saturated, Hot Spring Spas are a high quality product and when priced right, they will sell in Sweden.
References Bureau of European and Eurasian Affairs. (2012, April 5). Sweden. Retrieved from State.gov:
http://www.state.gov/r/pa/ei/bgn/2880.htm
CDA Media. (2012). Business Structures in Sweden and Doing Business in Sweden :: World Business Culture. Retrieved from
worldbusinessculture.com: http://www.worldbusinessculture.com/Swedish-Business-Structures.html
CDA media. (2012). Doing Business in Sweden - Swedish Business Culture - Swedish Culture - World Business Culture. Retrieved
from worldbusinessculture.com: http://www.worldbusinessculture.com/Swedish-Business-Style.html
Central Intelligence Agency. (2012, April 12). CIA - The World FactBook: Sweden. Retrieved from cia.gov:
https://www.cia.gov/library/publications/the-world-factbook/geos/sw.html
Export.gov. (2010, Aug 5). Export.gov - Center Content - Trade Finance Partners Washington State. Retrieved from Export.gov:
http://export.gov/washington/exportfinanceresources/index.asp
Export.gov. (2010, Aug 8). Export.gov - Center Content - WA State Trade Resources for Spokane Section. Retrieved from
Export.gov: http://export.gov/washington/Seattle/washingtontraderesources/index.asp
References cont. Export.gov. (2012, Feb 2). Export.gov - International Logistics. Retrieved from Export.gov:
http://export.gov/logistics/index.asp
Globaltrade.net. (2012). International Trade in Sweden: Resources for your Trade in Sweden. Retrieved from
Globaltrade.net: http://www.globaltrade.net/m/c/Sweden.html
Prysm Group. (2010). Marketing a Business in Sweden : Startup Overseas. Retrieved from startupoverseas.co.uk:
http://www.startupoverseas.co.uk/starting-a-business-in-sweden/marketing-a-business.html
Sweden.se. (Unknown). Business culture in Sweden. Retrieved from Sweden.se:
http://www.sweden.se/eng/Home/Business/Business-culture/
Swedish Chambers. (2011). Sweden imports - swedishchambers.se. Retrieved from chamber.se:
http://www.chamber.se/swe-imports.aspx
References cont. Swedish Customs. (Unknown). Importing goods to Sweden from countries outside the EU. Retrieved from tullverket.se:
http://www.tullverket.se/en/startpage/keywordsaz/az/importinggoodstoswedenfromcountriesoutsidetheeu.4.230c8d84122d2a4008e
80006078.html
Swedish Institute. (2012). Swedish Economy. Retrieved April 7, 2012, from Sweden.se:
http://www.sweden.se/eng/Home/Business/Economy/
The Heritage Foundation. (2012). Sweden Economy: Facts, Data, & Analysis on Economic Freedom. Retrieved from Heritage.org:
http://www.heritage.org/index/country/sweden
U.S. Customs and Border Protection Agency. (2011, May 31). Tips for New Importers and Exporters - CBP.gov. Retrieved from
cbp.gov: http://www.cbp.gov/xp/cgov/trade/trade_outreach/diduknow.xml
Watkins Manufacturing. (2008, March 24). Watkins Manufacturing Earns First European ENVY Award For Energy-Efficient Hot
Spring Spa | Hot Spring Spas. Retrieved from hotspring.com: http://www.hotspring.com/press-releases/watkins-manufacturing-
earns-first-european-envy-award-energy-efficient-hot-spring-spa
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