The more you give, the more you receive
Ownership advantages are the firm’s specific assets, international experience, and the ability to develop either low-cost or differentiated products within the contacts of its value chain. The locational advantages of a particular market are a combination of market potential and investment risk. Internationalization advantages are the benefits of retaining a core competence withinthe company and threading it though the value chain rather than obtain to license, outsource, or sell it. In relation to the Eclectic paradigm, companies that have low levels of ownership advantages either do not enter foreign markets.
If the company and its products are equipped with ownership advantage and internalization advantage, they enter through low-risk modes such as exporting.
The four key pillars of a successful export strategy:
- Internal 1: Export readiness assessment of a company (and gap analysis with recommendations how to address the change required)
- Internal 2: Export readiness assessment of a product (including benchmarking with similar products that are currently successfully traded on target markets; technical characteristics; packaging and labelling).
- External 3: Research of 220 countries and the World’s major trade channels to find target market/s.
- External 4: Develop export strategy to enter the selected above target market/s (that will include such considerations like transport, partnership, key distribution channels, pricing, volumes, advertising.