subject: How To Create An Export Plan [print this page] What is an Export Plan? What is an Export Plan?
An export plan serves as an essential guideline for the development of an international business. The plan draws up information relating to the identification of global markets, goals and activities to be undertaken and achieved, as well as clearly defines the objectives, resources and the results thereby.
An export plan focuses on three vital areas:
Company objectives This includes the companys products, their manufacturing costs, market position in the parent country as well as their risk undertakings.
Target country Businesses that hope to venture into foreign markets should take into account the target countrys market size, population, infrastructure, tax and financial system, and last but not the least, should also be familiar with the exchange rate.
Trading environment This brings into the purview factors like competition - both foreign and domestic alike; tariff and non-tariff barriers, as well as transportation costs.
Export plans involve the following criteria:
1. Companies need to conduct market research and a subsequent marketing plan;
2. They should also draw up methods for market entry and delivery methods of goods produced;
3. Business operations need to be organised and well-planned in order to expand their contacts and clientele;
4. Issues of export financing and insurance need to be addressed in order to understand the workings of a foreign government;
5. Finally, realistic targets and deadlines need to be set in keeping with available resources, both financial and otherwise.
Key approaches to export planning:
1. Half the battle is won with proper planning and delegation of responsibility. Objectives need to be clearly defined and a detailed plan layout needs to be followed. Companies can choose to work as a team or hire an export management consultant if they wish to do so.
2. It is important to make sure the companys background is brought to the forefront. This can include a little bit of history, industry trends, and the firms position in the national and international market alike.
3. A mission statement is vital while drawing up an export plan. This addresses questions like nature of the business and their customers, vision of the company, what they promote and uniqueness of the firm in question.
4. The export plan should also mention sources of funding, potential competitors, technology to be used, an assessment of market-specific strengths, human resources, and also the service product delivery.
5. An export plan should also address certain questions like choice of the target market, products and goods to be exported, answer questions pertaining to the financial and marketing requirements, resources and revenue needed for project completion, as well as the profit margins and contingency costs.
It is important to modify and update the export plan in keeping with the experience gained by the firm. An export plan should never remain static and should incorporate the changes made as and when it is reviewed by members of the staff and advisers.
