In the last 2 years Canadian Exporters have relearned the lesson that having all our eggs in one export basket (i.e. the US) can be extraordinarily risky.
In our last message we compared the huge diversity of exporting destinations that Australia enjoys compared to those of Canada and concluded this was the largest contributing factor that sustained their strong economy during the global economic downturn.
Now, most agree that there are huge benefits to building multiple international sales channels rather than relying 90% on the US.
- Increased sales
- Increased profitability
- Improved understanding of competition globally
- Better product positioning
- More consistent and secure revenue streams
- Reduced exposure to economic cycles
- Expansion of company â€œreachâ€
- Increased security
While we agree on the benefits, as a country with a culture of exporters highly geared to business in their own back yard, we still have to hone our skills and our approach internationally so we can overcome the challenges.
- Finding the right market
- Understanding the market
- Language and culture
- Finding the right contacts and/or partners
- Understanding unique regulatory requirements
- Hidden costs
- Logistical issues
Henry Ford overcame tremendous challenges through his ability to surround himself with experts, so that he may formulate the right questions, successfully answer them and then execute.
In preparing to penetrate a new overseas market many companies jump right in by heading to a trade show with the hope that they will meet the right players. Although it is one component of developing a new market it is certainly not the first step. Unfortunately, for many, going to a trade show is the extent of their market preparation.
Before jumping headlong into a new market we prescribe a far more surgical approach. This approach saves companies money and in many cases, years of wasted time dealing with the wrong partners who were met at a trade show.
We start by asking some very important questions:
- What is the potential size of the market?
- Who are my competitors?
- How are my competitors doing?
- What are my barriers to entry?
- What does the value chain in this market look like?
- Who are all the key players, distributors, agents, and influencers?
By asking these important questions we can decide:
- Who my best strategic partners are
- How attractive the market actually is
- How many resources should be put towards it
- How to get in
- How to get around barriers
- Who you need to build your partnerships with and who to avoid
- What your market entry plan should look like
The Canada Export Centre specializes in helping companies build international successes.
We can help you identify the right questions, answer those questions then execute.
In the coming months we breaking down the components of a successful market entry plan and hope you get value from the information.
Canada Exports goal is to help good companies build their businesses in overseas markets.
If you would like to discuss your company’s goals please feel free to contact us.
Mark Mensing, President & CEO