Why Go Global

Preparing to Think Globally

Are You Ready to Go Global?

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LATIN AMERICA Population

Internet Users, Latest Data

% Population % Users Use Growth

COUNTRIES / REGIONS

( Est. 2007 ) ( Penetration ) in Table ( 2000-2007 )

Argentina 40,301,927 16,000,000 39.70% 13.00% 540.00%

Brazil 190,010,647 42,600,000 22.40% 34.70% 752.00%

Chile 16,284,741 7,035,000 43.20% 5.70% 300.30%

Colombia 44,379,598 10,097,000 22.80% 8.20% 1050.00%

Costa Rica 4,133,884 1,214,400 29.40% 1.00% 385.80%

Mexico 108,700,891 23,700,000 21.80% 19.30% 773.80%

Panama 3,242,173 264,316 8.20% 0.20% 487.40%

Peru 28,674,757 7,324,300 25.50% 6.00% 193.00%

Venezuela 26,023,528 5,297,798 20.40% 4.30% 457.70%

TOTAL 552,296,094 122,796,514 22.20% 100.00% 590.10%

www.internetworldstats.com

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Why Look at International Markets Now

• U.S. represents only 5% of world market.

• Barriers and costs to selling internationally are much lower.

• Distance between you and your customers is shrinking.

International Markets – The Business Decision

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•Growing need for new markets and new customers

•Increase sales volume

•Smooth out your business cycle

•Diversify customer base

•Increase visibility

Key Concepts in Going Global

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• Language

• Countries

• Culture

• Currencies

You need to be able to step outside your traditional boundaries

Who is Going Global?

•97% of U.S. Exporters are SMEs

•2/3rds of those Exporters have less than 20 employees

•63% of SMEs sell to only to 1 Market

Small to Medium Sized Companies

Leading Destinations for PA Pr0ducts

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1. Canada $9.2B

5. China $1.29B

3. Belgium $1.4B 4. UK $1.3B

2. Mexico $2.2B

6. Japan $1.26B

7. Germany $1.22B

8. Netherlands $.77B

9. South Korea $.659B

10. Australia $.653B

Globalizing Your Website

Why Go Global?Preparing to Think GloballyAre You Ready to Go

Global?

Are You Ready to Go Global?

• Develop an Export Plan/Strategy

• Develop a Marketing Plan

• Where to Turn to for Assistance

The 10 Most Common Mistakes Made By Exporters

1. Failed to develop an international marketing plan before beginning to export.

2. Lacked total commitment of top management in the initial stages of exporting.

3. Selected overseas representatives too quickly without thorough investigation.

4. Chased orders around the world instead of using a systematic marketing plan.

5. Neglected new export customers when their domestic market was booming.

6. Failed to treat international and domestic representatives on an equal basis.

7. Refused to modify products to meet foreign regulations and local preferences.

8. Did not print sales, service and warranty messages in local languages.

9. Refused to use export management companies (EMC) in less promising markets.

10. Failed to consider licensing or joint venture agreements in more restrictive markets.

Developing An Export Plan/Strategy

• Determine Your Products Export Potential

• Assess Your Company’s Export Readiness

• Create a Written Export Plan

Determining Your Products Export Potential

• Examine the success of your products/services domestically

• Examine the important unique features of your products/services

• Product Life Cycle

Assessing Your Company’s Export Readiness

Ask yourself….1. What does my company want to gain from

exporting?

2. Is exporting consistent with other company goals?

3. What demands will exporting place on the company’s key resources and how will these demands be met?

4. Are the expected benefits worth the cost, or would the company resources be better used for developing new domestic business?

Management and Company Review in Detail

• Management Objectives

• Experience

• Management and Personnel

• Production Capacity

• Financial Capacity

Management Objectives

• What are the company’s reasons for pursuing export markets?

• How committed is top management?

• What are managements expectations for the export effort ? – Time frame– Return on Investment

Experience

• Past lessons from export attempts?

• Where have you exported to and from where are you receiving leads?

• Are domestic customers shipping your products overseas? If so, where?

• Who are your main competitors – domestic and foreign?

Management and Personnel

• Existing in-house expertise?

• Who is responsible for the export department’s organization and staff?

• Available time to devote to international?

• Who will follow through after the planning is done?

Production Capacity

• How is present capacity being used?

• Will export orders hurt domestic sales?

• Are there fluctuations in the annual work load?

• What minimum order quantity is required?

Financial Capacity

• How much capital can be committed to export production and marketing?

• What level of export department operating costs can be supported?

• Competition from other new developments or efforts?

• By what date must the export department pay for itself?

Developing an Export Plan Review

• Create a written plan

• Clearly defined goals, benchmarks, and dead lines

• Build in your learning curve

• Remember that an export plan is a living documents

• Keep it as simple as it needs to be

Developing a Marketing Plan

Why?• Help you to develop a thoughtful and targeted

approach exploring new markets• Determine the best possible markets for your products

or services• Reduces headaches and surprises.

Identify Marketing Opportunities & Constraints Abroad

Screening Potential Markets– Obtain export statistics

that indicate product exports to various countries.

– Identify 5 to 10 large & fast growing markets for your company’s product or service

– Identify some smaller but faster-emerging markets that may provide some ground-floor opportunities

– Target 3 to 5 of the most statistically promising markets for further assessment.

Assessing Targeted Markets

– Examine trends for your products that could influence demand

– Look at the competition– Look at factors affecting

marketing & the use of the product in each market

– Identify any foreign barriers or U.S. barriers for exporting your product to a market

– Identify any U.S. or foreign government incentives that promote exporting of your product

Sources of Market Research

What Your Company Already Knows.• Where have you received unsolicited

inquiries?• Customers• Suppliers• Industry Publications• Trade Shows

Sources of Market Research

• www.export.govMarket Research LibraryTrade StatisticsInternational Trade Show Directory

• www.buyusa.gov/countryname/enProvides reports on specific country tradetopics

Make it easy on yourself & just ask an export assistance provider for help!

Get Export Advice

• What Can Export Assistance do for me?– Help develop your export strategy – Perform the tedious task of market research for

you– Help you find trade contacts– Help you promote your products in foreign

markets– Check the status of a foreign company that is

wants to buy from/represent you– Match your company with appropriate

buyers/sales reps/distributors in foreign markets

Marketing Plan, The End Result

• A ranked list of markets that represent the best markets for your products in terms of:– Demand– Openness for U.S. products– Cost of doing business– Your ability to support marketing and sales

development– Other factors that make sense to your company

• An outline of how you will approach the market

• Benchmarks and short, medium, and long term goals/obejectives

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Export Assistance in Your Area

U.S. Commercial ServiceTel: 412 644-2800Email: office.pittsburgh@mail.doc.govWeb: www.buyusa.gov/pittsburgh

www.export.gov

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North Central Planning and Development CommissionTel: 814 773-3162Email: ncexport@ncentral.com

Web: www.ncexport.comwww.ncentral.com

Center for Trade Development, Commonwealth of Pennsylvania

Tel: 717-787-7190

Email: peoneill@state.pa.us

Web: www.newPA.com/trade

How to contact us…

425 Sixth Avenue, Suite 2950; Pittsburgh, PA 15219

Tel: 412 644-2800Fax: 412 644-2803

Email: steven.murray@mail.doc.govwww.buyusa.gov/pittsburgh