Export Strategies

Introduction Export goods or services are provided to foreign consumers by domestic producers. Commodities that export large quantities of goods usually require the participation of customs authorities of importing and exporting countries. (Mancha Navarro, 2001) Due to the low personal value of these industries, the emergence of small transactions on the Internet such as Amazon and e-Bay greatly circumvented customs in many countries. Nevertheless, these small exports are still subject to legal restrictions that apply to exporting countries, especially from the perspective of strategic export restrictions. (Ferrer Trullols, 1993) Many markets

Four major strategic options for competing overseas markets are export strategies, licensing strategies, franchise strategies, and strategic alliances. In the export strategy, we create products using domestic production facilities and then export the products to overseas markets. The advantage of this approach is that the company can maintain business management and quality control without risk of investing in overseas facilities. The country can also gain experience curve and economy of scale by keeping all production in one country. The main disadvantage is that the cost of producing goods may be higher than overseas. This overestimates the company by competitors.

Through indirect export strategies, companies find intermediary markets using brokers. The indirect export strategy includes the use of export control companies (EMC), the use of export trading companies (ETC), and the use of international trade consultants. These intermediaries allow exporters to gain sufficient knowledge and connection. Cooperation strategy is the ability of two or more exporters to participate in foreign trade. Terpstra (1987) argues that when participating in their own power, they are most likely to succeed in the global market. Cooperative strategies include strategic alliances, joint ventures, contract manufacturing, licensing and franchising.

Companies wishing to enter the oversea market can access many market entry strategies. Entry strategies include exports, licenses, franchises, strategic alliances, joint ventures and wholly owned subsidiaries. However, as exports require limited risk, cost, and understanding of foreign markets and transactions, most organizations prefer exports as their major foreign market strategy. Export is a strategy to produce products and services in a country (usually the producer country) and to sell and distribute it in other countries. Exporting organizations maintain manufacturing activities in the domestic market, but in the export markets for marketing, distribution and customer service activities, companies should carry out their own activities or sign contracts with independent agents or agencies You can (Cavusgil, Knight, Riesenberger)