Global Avocado Trade and Marketing Strategies
Added on 2020-03-16
23 Pages6155 Words52 Views
Leadership ManagementProfessional DevelopmentLanguages and CultureStatistics and ProbabilityEconomics
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Export Marketing Plan 1EXPORT MARKETING PLANNameCourseProfessor’s NameUniversityCity (State)Date
Export Marketing Plan 2Table of figuresFigure 1........................................................................................................................................................9Figure 2......................................................................................................................................................11Figure 3......................................................................................................................................................11Figure 4......................................................................................................................................................12Figure 5.....................................................................................................................................................15
Export Marketing Plan 3Export Marketing PlanAssessment of Austchilli’s Readiness for ExportDifferent factors should be put into consideration when deciding if Austchilli Company is ready to export its products. First, there is need to carry out an internal analysis of the business to determine if there is growth feasibility. First, the financial statements of the company should be analyzed. These include the balance sheet, income statements, and the cash flow statements (Pittel, 2002). These statements should be within 3 to 5 years. They show the profits or losses that Austchilli has been making and the expenses that were incurred. They also show the cash that is coming into the company as compared to that which is going out. If the company is ready to export, the cash inflow ought to be higher than the cash outflows. For the balance sheets and the income statements, there should be a record of profits. Moreover, if the company is publicly traded, the equity from shareholders could be used to finance the export activities. Second, there is a need to analyze the company’s management by looking at their level of commitment and how well they have implemented different strategic plans in the past. This knowledge can be gained by talking to the Managing Director because this is the highest authority in the firm’s management. It is also important to speak to the entire management team. This will aid in providing an enlightenment on the firm’s culture to see if they are ready to export. For example, Austchilli is a medium enterprise with 50 to 200 employees. The company is privately owned where the managing director has close control and is in charge of critical decision making. The culture of Austchilli includes learning, values, communication, and leadership which are some of the characteristics of organization’s that are innovative(Šimanskienė, Paužuolienė, and Paužuolis, 2015). The company can seek assistance from other exporters who are not its competitors inorder to venture into exporting.
Export Marketing Plan 4. Another factor that should be considered in the internal analysis is the presence of resources that will be used to enter the new markets. To export products, Austichilli will need to have funds for distribution, product adaptation, marketing among others. Therefore, if the company lacks the necessary resources, it cannot be able to thrive in foreign markets and is therefore not ready to export its products. Further, it is necessary for Austchilli to evaluate if the company has knowledge and skills on entry procedures and documentation needed to venture into foreign markets and the different export risks that are involved. This is because ignorance on this matter may cause the company to make losses due to fines or to fraudsters. If it is determined that the Austchilli has in-depth knowledge of these procedures, this is an indication that it may be ready to enter new markets (Henisz, 2000).After the internal analysis of the company has been carried out, there is a need to analyze the entire industry. There is a need to find out to what extent the industry is involved in the global market. By conducting this analysis, one can understand the significant aspects of the industry that can be used in their own exporting decisions and processes. Moreover, the company can gain insights on how to conduct their exportation processes by receiving advice from other businesses providing substitutes in the same industry (Arnold, 2001).Additionally, there is a need to determine the trade-offs and benefits associated with the expansion of the market internationally(McDonald, n.d.). This is important in the determination of what outweighs the other. Entrance into the export market will lead to reduced dependence on domestic markets. Trade-offs may include the need for additional financing to hire more staff or
Export Marketing Plan 5the plowing back of short-term profits to ensure that there will be profits in the long run (Terpstra, Foley, and Sarathy, 2012). Once it is identified that the benefits outweigh the trade-offs the company can consider other factors.Next, it is vital to determine whether the avocado products from Austchilli have export potential.This may require a SWOT Analysis of the products to find out what the competitive edge of the products would be in the foreign markets. If the products are not performing well domestically, they should not be introduced into external markets because there is a high probability of failure.However, if the analysis showed that the company is financially weak, has no competitive edge, has poor management, or lacks knowledge on international markets, the company can carry out different activities to strengthen its position. These include; setting up meetings with successful exporters to know how they managed to succeed, carry out training activities for their employeeson exportation matters, or join export clubs.Priority Markets for AustchilliIt is significant for Austchilli to carry out a robust analysis of existing markets to identify which markets have the highest growth opportunities and will bring the highest return on capital invested. The insights that are made from carrying out the business domestically can come in handy when choosing the best export markets. Austchilli Company should, therefore, focus its efforts and resources on finding the most favorable foreign markets before initiating the export process. To identify the priority markets for Austchilli company, there are some steps that can be followed to ensure the results are as accurate as possible. First, economic modeling is essential tobe able to identify the markets that had the highest potential for growth and that could provide
Export Marketing Plan 6this company with competitive advantages (Manfredi, 2003). Next, an analysis of potential resources that are needed regarding capital sources, availability of technology, and talent for the workforce should be conducted. Further, an analysis of key trading blocs in the region that wouldenable Austchilli to reduce costs by saving on taxes should also be conducted. Finally, it is valuable to observe the significant role players in the industry identify how they have been able to remain profitable over the years. Activities such as liberalization of trade, extensive changes in technology, and presence of extreme competition are factors that are extremely vital in consideration of priority export markets. It is vital for the company to evaluate if it can be able to have a comparative advantage or absolute advantage over other competitors (Arthur, 2004). It is more important to have an absolute advantage than a comparative advantage because being able to produce high-quality products is much better than producing low-quality products at low prices. However, the company should strive to enter into markets where they can be able to provide both advantages atdifferent levels in a bid to reach as many customers as possible. One model that was used in the analysis of foreign markets is the Ricardian model. In the contextof international trade this model asserts that there is a comparative advantage difference based ondifferences in technology in different countries (Soo, 2017). This model assumes that apart from technological differences, all other actors are the same in the home country and the country to which products are being exported.This model is based on the labor theory of value. This model unlike a majority of other models ininternational trade says that international trading activities are beneficial for all the countries involved. It states that even nations that use poor technological infrastructure will benefit from global trade (Arthur, 2004). The labor theory has three significant implications. These are; units
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