General management issues (2 of 10)

Do you understand the export process?

Have you decided what method of entering an export market you will use?

Yes
No
 

There are four types of market entry channel available to the international marketer:

Indirect exporting, i.e. selling to a trading house or local agent

Direct exporting, i.e. selling directly to an overseas customer who may be the end user, or to a middleman based in the foreign market, such as an agent, distributor or subsidiary of the exporting company

Licensing, franchising and contracting, i.e. the sale of knowledge or skills to overseas buyers

Manufacturing abroad, e.g. a joint venture arrangement, or the establishment of a wholly-owned offshore manufacturing base.

Do you know which the best markets are for you?

No
Yes
 

Certain countries are more attractive than others for certain products – it is best to pursue only the most attractive markets.

Do you know who your potential buyers are and what are their requirements are likely to be?

No
Yes
 

Writing down why particular markets have been selected (specifying market trends and conditions, competition, buyers and those who influence buying decisions) helps you to focus.

How the senior management envisage exporting?

Have you decided which capabilities you must have to successfully implement your strategy

Yes
No
 

Export plans need to be written to make ideas concrete. Before being certain about these matters one should not be ready to write an export plan.

Do you know what beneficial market access arrangements such as bilateral or multilateral trade agreements South Africa has in place that may make exporting attractive to a particular area(s)?

No
Yes
 

Trade agreements (bilateral and multilateral respectively) ensure that enterprises can develop trade with each other on a fairer and more equitable basis, often based on eliminating or reducing trade barriers.

Are you aware of incentives offered by the South African government for the manufacture or export of your product?

No
Yes
 

Because exports contribute to an improvement in South Africa’s trade balance, government encourage enterprises to export by providing incentives.

Have you determined your market potential?

No
Yes
 

Price is not the only factor that buyers consider when making the decision to buy. Other factors contribute to the decision including quality, delivery schedule, warranties, liability for damage, patents, technical assistance, confidentiality, changes in.

Do you know how to access the Internet?

No
Yes
 

The Internet is a global network of computers that communicate with each other via telephone lines. It began in 1980 as a means of sharing information within the university-based scientific community.

Do you have a website?

No
Yes
 

The internet is a vast communication network has become so widespread that most governments, major firms, enterprises and establishments have a presence on the Internet, or a “website”.

Use of the Internet is growing fast, and increasing numbers of small- and medium-sized firms are taking advantage of it.

Do you know who can assist you with various aspects of the export process?

No
Yes
 

There are many service providers that should be used. In addition there are trade promotion organisations that can also assist.

Do you know who can assist you with specific product or sector advice?

No
Yes
 

There are a number of resources a firm can turn to for assistance regarding specific products. It should be noted, however, that this assistance is usually provided against a fee, which can be either a membership or a consulting fee.

Do you know who can assist you with your market research?

No
Yes
 

Many public and private organisations offer excellent market and research assistance. Some of the best international trade professionals to consult in this regard.

Do you know where to find market reports for specific products and specific markets and regions?

Do you understand the rules of business etiquette when doing business in different countries?

No
Yes
 

You should be fully aware of customs and practices, especially business practices in each market.