Five Keys to Entering New Markets

1. Export Now
Five Keys to Entering New Markets
Frank Lavin, Global CEO of ExportNow.com

2. Export Now
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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3. I. Why and What: Setting your Export Goals
Where’s the World Going?
Why has the pace of
economic change
accelerated in recent
years?
1 Three billion new customers
2 The death of distance
3 The erosion of trade barriers
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4. I. Why and What: Setting your Export Goals
What does this mean?
Growth of world trade
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.
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5. I. Why and What: Setting your Export Goals
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 skills
3. Your business needs to develop a culture of
flexibility and innovation
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6. I. Why and What: Setting your Export Goals
Where are You Going?
Self awareness is a key business issue
Direct and indirect
Motives
costs
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7. I. Why and What: Setting your Export Goals
Where are You Going?
Why Export?
• To learn and experiment
• To broaden the product slate
Motives • To diversify markets
• To improve scale (MOTS)
• To deny territory to the competition
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8. Export Now
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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9. 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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10. II. How: Five Keys to Entering New Markets
Complexity
of market
entry Final
target
Build
target
Initial
target
Value of the market
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11. II. How: Five Keys to Entering New Markets
Remember the global channels
www. .com
To help companies sell to Chinese consumers
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12. II. How: Five Keys to Entering New Markets
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13. II. How: Five Keys to Entering New Markets
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14. II. How: Five Keys to Entering New Markets
B. Customers: How They Differ
You don’t know the customers and they don’t know you
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 ?
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15. II. How: Five Keys to Entering New Markets
C. Competitors: A Different Market
Can your company offer Can your company perform
potential customers a the critical activities needed
competitively distinct to protect a profitable
product? position?
Key issues Key issues
• market segments
• leaders and laggards
• competitor positions
• value chain
• unmet consumer
• strategic audit
needs
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16. II. How: Five Keys to Entering New Markets
D. Capabilities: What you Need to Win
Self-knowledge Learning organization Diagnostic skills
Tailor your
export
Understand
marketing Maintain a
to what Start with
strategy to healthy
extent your like-minded
target the paranoia to
strengths at customers
same keep ahead
home are in export
customers of
strengths markets
in the competitors
globally
export
market
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17. II. How: Five Keys to Entering New Markets
D. Capabilities: What you Need to Win
Self-knowledge Learning organization Diagnostic skills
Strengths at Strengths
home globally
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18. II. How: Five Keys to Entering New Markets
E. Capability Gap: How to Close it
Home Market Advantages Joint Ventures
Established
1 operating Partnerships
position
Contract
2 Volume
Support From Head
Office
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19. II. How: Five Keys to Entering New Markets
Home Market
R &D Manufacturing Distribution Finance Sales General
Corporate
Activities
Country A Country B Country C
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20. Export Now
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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21. 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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22. III. When: Making your Export Strategy Happen
Bridge the Cultural Gap
Credibility
Pace of business Friendship
Gifts
Taste
Dress Learning
Punctuality
Caution
Traditional
Details
societies
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23. III. When: Making your Export Strategy Happen
Bridge the Cultural Gap
Self-knowledge Learning organization Diagnostic skills
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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24. III. When: Making your Export Strategy Happen
Take Action!
1. Move incrementally
2. Experiment and test markets
3. Become a learning organization
4. Develop a feedback mechanism
5. Be willing to adjust
6. Remember Global Channels
Happy Exporting!
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25. Case Studies
35 case studies from 14 different countries
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26. Export Now
Export Now
Written by Frank Lavin and Peter S. Cohan
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27. Export Now Team:
Frank Lavin, Global CEO: Frank@exportnow.com
John Hoover, U.S. CEO: John@exportnow.com
Seth Lavin, Chief of Staff: Seth@exportnow.com
Clare Malone, Marketing Communications Manager,
Clare@exportnow.com
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