export now book presentation
TRANSCRIPT
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: [email protected] Hoover, U.S. CEO: [email protected]
Seth Lavin, Chief of Staff: [email protected] Malone, Marketing Communications Manager,
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