Businesses that need to expand on markets other than the domestic (“domestic”) may adopt different strategies to do so. In fact, they may choose to implement export mode , whether direct or indirect, or even simply to enter into agreements with companies already located in the foreign markets in which they decide to operate. The internationalization strategies will be described below, and the firm chooses the mode with which to proceed to expand into other markets according to their needs, which depend on the conditions offered by each method.

When a company adopts strategies of indirect export, the production of goods remains in the country of origin of the enterprise and the placement of products on foreign markets is entrusted to specialized intermediaries. The domestic market remains, however, the predominant outlet for the products of foreign markets and is only suitable for any surplus products. The advantages can be found in the direct export costs and low business and financial risk, implementation of economies of speed in the penetration of the market, the strengthening of the company’s product. However, there are also drawbacks in using this method of exit from the domestic market, such as: the lack of knowledge of the market , as there is a limited return of information on demand, distribution channels and marketing initiatives implemented by intermediaries and the competition.

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As regards the importer-distributor, it is an independent operator who purchases the product, taking the commercial risk; whose main task is to import the product, but can also take care of the distribution to wholesalers or retailers. These operators are a good way to export its product abroad, as they have a good knowledge of the market, an extensive network of relationships with local distributors, a high ability to manage assortments and good financial strength and solidity. The drawbacks are that the importer-distributor is reluctant to make investments for the distribution and after-sales services, the policies of sale may not be in line with those of the producer or conflicts may also arise on the policy of the brand. There is, then, the ability to contact a purchasing agent, which is an independent organization that resides in the country of the production and in the interests of foreign customers interested in purchasing the products to be sold on the domestic market or international level.

The purchasing agent buys the goods in his own name but on behalf of the international buyer, after receiving education about vendor selection, negotiation of contracts , quality control and fulfillment of formal requirements. The drawbacks, however, the manufacturer is obliged to accept if you choose this formula are linked to a limited profitability, with a low control over the policies of marketing on the foreign market and non-visibility of the brand of the product exported. You can still turn to a export house, an organization that deals with export of products of different companies that are not in direct competition with each other. It acts in the name and on behalf of the manufacturer and export office operates as an independent and low cost. Its characteristics are: the high specialization in the field of geographic areas served, type of product or customer favorites from the market, a remuneration committee for a percentage of sales and a portfolio of products complementary to each other and not in competition.

The activities offered by the export house are: the pursuit of markets and customers, the definition of the terms of contract, cargo handling, preparation of documents for foreign countries and the provision of commercial and technical support to overseas customers. So important is the benefit that the company derives from the knowledge of the market and of the network of trade relations of the intermediary, the intermediary that offers integration with other products that are part of its portfolio and then the cost of this export mode are not high. Against this, however, we must emphasize that the needs of the intermediary may not converge with those of the company and the importer may promote products of other companies, which are at greater sales potential.

The trading company is, however, an undertaking engaged in commercial brokerage products on several markets and can assume different characteristics from the dimensional point of view of product specialization and geographical areas of action. Its main function is to organize and manage the buying and selling of goods and services in international trade, taking in all its associated risks. It also defines the market potential, the product portfolio, deals with the purchase of products, financing the operations of import-export, transport and logistics, product sales and more. However, the manufacturing company does not hold any great degree of control on the activities of trading and customers and do not know the final destination of the production.

Another important thing is, you do nod to export consortia, which are business combinations in order to promote and sell their products on the foreign market and aim to overcome the difficulties that businesses, individually, in working together on the international market including lack of knowledge, the economic burden and difficulties in organizing the sale. So, through consortia costs are lowered relative to the activities on the foreign market, you have access to a huge wealth of material and immaterial resources and establish a relationship of complementarity between products.