GETTING STARTED: An overview of International Business Strategic Development

WOMEN ENTREPRENEURS FOR THE GLOBAL MARKET PLACE

JUNE 18, 2003WORLD TRADE CENTER OF GREATER PHILADELPHIA C2003

GETTING STARTED:

An overview of International Business

Strategic Development





Are we really prospering in this big world?

• Are we, the women, playing a role ?

• Are we taking advantage of the opportunities?

Yes, but not enough!



Despite the challenges there are always opportunities

• The era of globalization ……. Be part of it!

• The global market

For small companies and large companies



EXPORTING COMPANIES

• 97% are small businesses

• 40% of small businesses are owned by women

• 30% of companies that export more than

half of their products are owned by women

Sourse: The SBA



Can Women claim a piece of the pie?

Absolutely, positively!Our tools:• Knowledge• Professionalism• Competency• No Taboos• “Be Strategic, be prepared”



THE PYRAMID OF STRATEGIC EXPORT BUSINESS DEVELOPMENT

Core

Targeted Business

Trading

Development



Trading: The most common form, especially with small or new to export companies

• Advantages– Small investment required– Limited international knowledge required

• Disadvantages– Vulnerable to external factors– Failure is common



Targeted Export Business Development

• Best approach to export

• Proactive, not reactive



Core

• Local Manufacturing

• Joint Ventures

• Acquisitions



Developing the strategyAreas to consider• Why export ?• Company commitment• Your product• The potential markets• Market entry strategy• Export financing• Legal and regulatory requirements• Partner selection• Cultural differences



The difficulty in getting started:FOCUS

1. Market selection

2. Product Selection

3. Partner Selection



Market Selection• Political Environment• Economic Environment• Social / Cultural Environment• Urbanization • Income level• Market size• Market Access / Entry Barriers• Product Potential / Consumption / Usage• Competition• Distribution Infrastructure



2. Product Selection

The four As: Appropriate

Available

Affordable

Advertisable



3. Partner SelectionDefine the Type of Partner You Want

This excludes JV and local manufacturing, which is at the top of the pyramid

Types of companies available:

Indirect:

1. Commission Agents

2. Export Management Companies

3. Export Trading Companies

Direct:

1. Sales representatives or agents

2. Distributors

3. Foreign/Domestic Retailers

* Choose the best for your company and product *



Available Resources1. Seek help from the government

2. Counterpart recommendations

3. Trade missions

4. Trade shows

5. Matchmaking functions

6. Web sites



DISTRIBUTOR SCREENING, INTERVIEWING AND SELECTION

1. Get as much information as possible

2. Develop standard screening tools for better comparison

3. Visit them



What to Look for When Setting up a new distributor/agent

Company OrganizationFinancial CompetencySales / Distribution NetworkLogistics / Regulatory ExperienceNew Product Introduction ExperienceNon-Competitive ProductsCompatibilityMarketing / Brand Building ExperienceCommunications



Legal /Governmental / RegulatoryConsiderations

Seek the help a lawyer who specializes in this field.

• The distribution agreement– Have it or not?– When?– Clauses? Grant exclusivity or not?– Exit strategy



Legal, Governmental, RegulatoryConsiderations

Seek the help a lawyer who specializes in this field.

Trademarks/Intellectual property-Piracy-Protection

Product registration-License for entry



Maintain a good working relationship

1. Get to know your agents / distributors

2. Develop mutual trust

3. Understand cultural differences

4. Always ask, “What can I do to help you do a good job for us?”

5. Be partners - not commanders

6. Use different techniques and methods to motivate them

7. Spend time to train them at all levels

8. Visit in regular intervals and evaluate their performance



Grow the business and be successful

• Develop a strategy and a marketing plan together

• Each of the two partners should know their

responsibilities and be accountable for them

• Invest in the business together

• Share marketing costs and responsibility



Available resources• World Trade Center of Greater Philadelphia

• OIBD

• USEAC (US Export Assistance Center)

• SBDC

• SBA

• FAS ( Foreign Agriculture Service)

• Embassies and Consulates - Trade Attaches

• Many others



What is aWorld Trade Center?

The perception: A WTC is a building

The reality: It is an organization that offers trade services

The ultimate combination: A building plus services



How can we help you?

The World Trade Center of Greater Philadelphia (WTCGP) is a non profit organization and licensed member of the World Trade Centers

Association (WTCA).

Our mission is to promote economic development through international trade that leads the Greater Philadelphia region to

economic prosperity.



Our Services

• Market Research• International Trade Consulting• Market Access Grants• Trade Missions• Education and Training• Networking• Reciprocity with 300 WTCs and 750,000 companies members



Today’s international business challenges:

• The world economy

• War / Political Instability

• Terrorism / Effect on business

• Travel restrictions

• Anti US sentiments

• Free Trade Agreements and Unions (EU)



CONCLUSION

Homework + Right Market + Right Product + Right Partner = SUCCESS

Women entrepreneurs are IN!

Documents

GETTING STARTED: An overview of International Business Strategic Development