Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter E-Module E1 Prepared by Ron Knowles Algonquin College E-Module 1: Exporting: Another Adventure Beckons

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter Business Plan Building Block E-Module 1 will help you:  Encourage you to consider exporting your product or service before you start your business.  Encourage you to consider exporting your product or service once your business has been established.

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter Learning Opportunities  Become “export ready.”  Do an export SWOT analysis.  Become aware of the key exporting issues.  Understand the basic exporting terminology.  Understand and use key exporting strategies.  Become aware of export advisers and sources of help.  Understand the importance of cultural awareness. Draft a preliminary export plan.

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter Canada Relies Heavily on Exporting In 2001, our exports were in the $415 billion range Exports account for about 40 percent of our economic output The U.S. accounts for almost 85 percent of our exports Every $1 billion in exports sustains jobs Export firms expand employment 20 percent faster than non-exporting firms Export firms are 10 percent less likely to fail

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter Motivations for Exporting Dispose of excess domestic product Supplement domestic sales with occasional foreign orders Stabilize seasonal domestic markets Extend the life cycle of existing products Use existing capacity more efficiently Build a base for long-term growth Diversify the company’s markets Exploit unique technology or know-how Improve return on investment over the medium to long term Acquire knowledge and experience to help compete at home

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter EXPORT SWOT Analysis A SWOT analysis is an organized method of assessing a company's internal Strengths and Weaknesses and external Opportunities and Threats. Internal Strengths and WeaknessesInternal Strengths and Weaknesses –Define your business competitive expertise or distinctive competency. External Opportunities and ThreatsExternal Opportunities and Threats –Ask yourself what your company’s best external opportunities and possibilities are.

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter Exporting: Key Issues Key issues to consider when thinking about exporting include: Finding information and advice Choosing an entry strategy Pricing your product or service Promotional strategies Export financing Getting your product or service to market Culture and communications

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter Sources of Export Information Direct contact Periodicals Federal government departments, especially the Department of Foreign Affairs and International Trade (DFAIT) Trade Commissioners Provincial governments Business associations Foreign embassies Bilateral business councils Intermediaries Databases Export advisors/experts Internet

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter “Export-Ready”Checklist  Are you ready to commit the resources and time to attempt exporting?  Are you comfortable with the choice of target market?  Are you confident that you have the right product or service for that market?  Have you become familiar with the necessary technical information?  Are you confident with your choice of entry or distribution strategy, and do you feel you have the right partners and/or associates?  Are you confident your price is competitive? …continued

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter  Do you have a promotional plan?  Can you finance the transaction?  Have you chosen an appropriate way of delivering the shipment?  Do you have an adequate understanding of the culture of your target country? “Export-Ready”Checklist (concluded)