Export strategy Essay Example | Topics and Well Written Essays - 2500 words

Export strategy - Essay Example However, Jasmine rice has no immediate substitutes and it would not be possible also to create any substitute for it in foreseeable future. But that does not automatically guarantee success as there must be in place proper and rational product strategy, business process strategy, operations strategy and financial strategy to augment the unique selling point of Jasmine rice. This paper deals at length on these strategies and how they should be formulated such that success is assured. Further, this paper also tends to look into the future and try to forecast whether United Kingdom would still remain as attractive an export market it is now a decade later. After making a substantive analysis of British economy the paper concludes that though other varieties of rice produced by Siam Rice Co. might face strong competition from indigenous substitutes, Jasmine rice would still retain it unassailable position in British markets. Export Strategy Export is not the same as selling in a domestic market as it involves not only foreign currency but negotiating a foreign market, foreign tastes and preferences, foreign customs and of course foreign rules and regulations. Thus, export can only be successful if a proper export strategy is in place and is executed efficiently. It should begin with the chances of success a product might have in an export market. The thumb rule for gauging the possibilities of success is whether the product is successful in the domestic market. If a product is successful in domestic market then there is fair chance that it would be a success in foreign markets too. But care must be taken to factor in the customs, tastes and preferences prevalent in foreign markets before blindly assuming that domestic success is failsafe proof of the product being successful in foreign markets also. As for example beef from Chicago is famous for its taste across the world but if a beef exporter feels that they would be able to storm the non-vegetarian markets in In dia they would be in for a rude shock as beef is a taboo for Hindus who form nearly eighty five percent of Indian population. Similarly while pork is an all time favorite in China it does not have any market in Muslim countries where it is a forbidden food. So, an exporter needs to do elaborate market research for accurately gauging the market potential for the product they would like to export (Credit Research Foundation 2007). But before the decision to export is to be made the company must determine in no uncertain terms what it stands to gain from exporting and whether it has sufficient resources at its command to undertake the additional production quantities that would have to be done in order to service both domestic and export markets. The other issue that needs to be clarified is whether the costs related to export are less than the benefits that the company expects to garner from export activity. Only if all these three issues provide a positive answer should a company und ertake exporting activities. Else, it would be better off transacting in domestic markets only (World Export Development Forum 2007). Product Strategy As already discussed, the first test of whether a product can be exported is whether it has a stable market within the country. But, as already been