Exporting Your Goods
Market Entry Strategy
Once you have chosen the most promising market for your product, the following six questions and answers can help you develop your market entry strategy:
What different market entry strategies should we consider?
What should we consider in deciding between different market entry strategies?
What are the advantages and disadvantages of direct exporting?
What are the advantages and disadvantages of indirect exporting?
What are the advantages and disadvantages of exporting through partnerships or alliances?
What role could the Canadian Commercial Corporation (CCC) play?
What different market entry strategies should we consider?
- Direct exports to the buyer
- Indirect exports through an intermediary
- Working through partnerships or strategic alliances
What should we consider in deciding between different market entry strategies?
- How is business typically conducted by foreign firms in your export market and industry sector?
- What are your company’s export strengths and weaknesses?
- What is your company’s financial capacity?
- How much service and after-sales support will your customers require?
- Does the regulatory environment required a local partner?
What are the advantages and disadvantages of direct exporting?
The advantages are:
- Higher profit margin
- Able to set lower prices and be more competitive while still profitable
- Provides direct access to, and relationships with, customers
The disadvantages are:
- Market entry takes longer and is more expensive
- No foreign intermediary to help you become familiar with the market
- May make cultural errors without a cultural coach
What are the advantages and disadvantages of indirect exporting?
The advantages are:
- Faster market entry
- Easier to build a positive reputation in the market
- Less likely to make cultural errors due to a cultural coach
The disadvantages are:
- May be less profitable
- May not be able to build relationships directly with customers
What are the advantages and disadvantages of exporting through partnerships or alliances?
The advantages are:
- Faster market entry
- Lower costs for local presence
- Fewer errors due to a cultural coach
- Complementary capabilities for more competitive positioning
- Risk shared between partners
The disadvantages are:
- Potential for intellectual property to be stolen
- May not commit the resources necessary for the partnership to be successful
- Less likely to develop relationships with customers
What role could the Canadian Commercial Corporation (CCC) play?
CCC helps Canadian exporters access government procurement markets world-wide and close export sales on the best possible terms and conditions.