Globalizing the Company: Assessing the Globalization Forces.

— 7 min read

 Second in a series of four posts.

By W Gary Winget, FasTrack Global Expansion Solutions

Why globalize a company’s strategy? A globalized strategy can lead to the integration of a company’s domestic and country-based strategies into a single, coordinated, worldwide strategy and the acceleration of a company’s success in the global marketplace.

How does a company globalize its strategy? To globalize a company, the company needs to analyze the strategic characteristics of its global environment and develop a strategic fit between its long-term strategies and its assumed future global environment.

The second step in the globalization process is to assess your industry’s globalization forces. The tasks are:

  • Assess the strategic player forces
  • Assess the market forces
  • Assess the firm forces
  • Assess the trade forces
  • Determine the degree of globalization

To assess the forces that are propelling and inhibiting your industry’s movement toward greater globalization and the impact these forces will have on your company and global industry creates the opportunity for your company to respond with strategies that are matched and in balance with the level of the industry’s globalization forces.

You will want to assess the degree of globalization in your industry in relation to a series of positive and negative globalization forces – positive forces propelling your industry toward more globalization and negative forces inhibiting movement toward globalization. The assessment of the globalization forces will assist your company in determining how global your industry is today and how globalized it is expected to be in the future. This assessment will create the opportunity for your company to respond with strategies that are more or less globalized and, therefore, matched and in balance with the level of your industry’s globalization forces.

You will be assessing your industry in terms of the following four globalization categories: Strategic Player Forces; Market Forces; Firm Forces; and Trade Forces.

Strategic Player Forces. The strategic player forces are as follows.

  • Many Strategic Buyers. Are there many and an increasing number of global strategic buyers? If yes, you might assess this force as having a high impact on the globalization of your industry. Otherwise, you might assess the impact as medium or low.
  • Many Large Strategic Market Segments. Are there many large global strategic market segments? If yes, you might assess this force as having a high impact on the globalization of your industry.
  • Many Large Strategic Country Markets. Are there many large global strategic country markets? If yes, you might assess this force as having a high impact on the globalization of your industry.
  • Many Strategic Competitors. Are there many and an increasing number of global strategic competitors? If yes, you might assess this force as having a high impact on the globalization of your industry.

Market Forces. The market force category includes the three globalization forces.

  • Shared Buyer Needs. Do buyers around the world have similar needs that your product can fulfill? Are all these buyers in the same life cycle use of your product? If buyers have highly similar needs, you might assess the force as having a highly positive impact on globalization in your industry and product. If buyer needs are very diverse, your score on this force may be low.
  • Global Distribution Channels. Are there channels of distribution for your product that have a global reach – selling into many global market segments and country markets? If yes, then you might score this globalization force as high. However, if most channels of distribution for your product are local/national, this force would be scored as low.
  • Global Marketing Channels & Elements. Are the marketing channels (e.g., the Internet) and marketing elements (e.g., messaging) for your product accepted and highly similar in many global market segments and country markets? If a significant number of buyers can be reached through shared marketing channels and respond to standardized marketing elements, this force might be rated as high on the globalization spectrum. However, if most buyers are reached through, and respond to, local/national channels and marketing elements, this force has a low impact on globalization of your industry and product.

Assess Firm Forces. For this category of globalization forces, you will be assessing characteristics of your product and shipping costs in relation to the global market.

 

  • Global Economies of Scale. Are economies of scale maximized by supplying a global market for your product? If yes, then this force will have a high impact on globalizing your product. If there is no or a low impact on economies of scale, there is no significant globalization effect for this force.
  • High Product Development Costs. Is the cost of developing your product high? If this were the case, supplying a larger global market would provide a faster return on this investment and support a high globalization rating.
  • Short Product Life Cycle. Is the life cycle for your product short or long? A product with a short life cycle could benefit significantly by supplying a global market compared to local/national markets – more sales in less time. The longer the life cycle for a product, the lower the globalization impact of this force.
  • Low Shipping Cost. Is the cost of shipping your product low as a percentage of the selling price? If yes, this would indicate that your product will be more competitive in foreign markets compared to the locally produced product. Thus, low shipping costs can have a positive impact on the globalization of your product.

Assess Trade Forces. The final globalization force category is trade.

 

  • Similar Product Compliance If the governmental compliance requirements (e.g., food product labeling), as well as voluntary requirements imposed by a country’s buyers (e.g., no GMO), are similar in country markets worldwide, the globalization force will be high because a producer can more easily introduce and sell its product in many markets. When the compliance requirements are different in every country, the cost of product design, manufacture, inventory, compliance, and distribution increase significantly.
  • Low Trade Barriers. If trade barriers imposed by country markets are few and low, this force will support a high globalization assessment. There are many forms of governmental and privately initiated trade barriers that inhibit the flow of products into a specific country market. Example of trade barriers include such things as a quota on the amount of a product that can be imported, slowing down the processing of imports, subsidizing local producers to make them more competitive with imported products, anti-dumping laws, and local content requirements. The fewer country markets that impose trade barriers, the more likely it will be that this force will support a high level of globalization.
  • High Export of Production. The high global export and import of a product is an indicator that the market for a product has been globalized.

Determine Degree of Globalization

 

After you have assessed each of the fourteen globalization forces and the four summary globalization categories, you will need to determine the overall degree to which these forces are globalizing your industry and product.

The list of the highest globalized forces will become your list of prioritized forces to be used in defining your company’s global strategies and should be reviewed and updated on a periodic basis.

Nest Steps. Defining Global Strategies. Developing a Globalized Strategic Profile.

Reference. FasTrack Export Step-by-Step Process, pages 376-385. www.FasTrackGlobalizer.com.

Contact Tony.Kramer@FasTrackGlobalizer.com for more information.

Globalizing the Company: Identifying Global Strategic Players

— 4 min read

First in a series of four posts.

By W Gary Winget, FasTrack Global Expansion Solutions

Why globalize a company’s strategy? A globalized strategy can lead to the integration of a company’s domestic and country-based strategies into a single, coordinated, worldwide strategy and the acceleration of a company’s success in the global marketplace.

How does a company globalize its strategy? To globalize a company, the company needs to analyze the strategic characteristics of its global environment and develop a strategic fit between its long-term strategies and its assumed future global environment.

The first step in the globalization process is to identify the company’s global strategic players and their current and future strategic impact on your company and industry. The global strategic players are:

  • Strategic buyers,
  • Strategic market segments,
  • Strategic country markets,
  • Strategic competitors

Strategic Buyers.

You will identify buyers that purchase products supplied by your industry and who are or are determined to be global strategic buyers. To be considered a global strategic buyer, a buyer must have or be expected to have a significant impact on your industry on a worldwide basis.

The buyer is considered strategic if it:

  • Volume of Product The buyer purchases a significant volume of product relative to the size of the total global market for the product;
  • Product Innovation. The buyer simulates demand for product advancements and innovations in your industry because they demand the highest quality and most advanced technologies;
  • Headquartered in Strategic Country Market. The buyer is headquartered in a strategic country market;
  • Specifies Globally. The buyer specifies standards for the purchase of your product on a global basis;
  • Other Criteria. The buyer demonstrates other significant characteristics unique to your industry.

Strategic Market Segments.

Strategic market segments are those market segments that purchase products in your industry and have a significant impact on the globalization of your industry.

A market segment is considered strategic if it:

  • Volume of Product Purchased. They global market segment purchases a significant volume of product relative to the size of the total global market for the product;
  • Product Innovation. The market segment stimulates demand for product advancements and innovations in your industry by demanding the highest quality and most advanced technologies;
  • Presence in Strategic County Market. The market segment is located in multiple strategic country markets for your product;
  • Specifies Globally. The specifications for the product category that are the same or similar globally;
  • Other Criteria. The market segment meets other significant criteria that are unique to your industry.

Strategic Country Markets.

Strategic country markets are unique markets that will have a significant impact on the globalization of your industry.

A strategic country market may be large or small. To be defined as a global strategic country market, it has to meet the following criteria:

  • Volume of Product Purchased. The volume of product purchased in the country market is significant relative to the size of the total global market for your product;
  • Product Innovation. The demand for product in the country market stimulates advancements and innovations in your product by requiring the highest quality and most advanced technologies;
  • Headquarters of Strategic Buyer. The country market’s is the location of a strategic buyer’s headquarters;
  • Headquarters of a Strategic Competitor. The country market is the location of a strategic competitor’s headquarters;
  • Other Criteria. The country market demonstrates other significant characteristics that are unique to your industry.

Strategic Competitors.

The final task in identifying global strategic players is to identify and profile the competitors with which your company shares a global market.

The following criteria will assist you in identifying and profiling competitors that are globally strategic in your industry. A competitor is considered a strategic competitor if it meets the following criteria:

  • Volume of Product Sold. They competitor sells a significant volume of product relative to the size of the total global market for your product;
  • Product Innovation. The competitor is a significant source of quality products and product advancements and innovations in your industry;
  • Large Market Share. The competitor has a significantly large market share in a global strategic country market;
  • Core Competencies. The competitor has significant core competencies relevant to your industry;
  • Other Criteria. The competitor demonstrates other significant characteristics unique to your industry.

Profile Strategic Players

After identifying the strategic players in your industry, develop in-depth profiles of each player that you determined to a global strategic player. Continually update the profiles as you increase your knowledge of the global strategic players and add new global strategic buyers, market segments, country markets, and competitors as they emerge.

Next Steps. Assessing Globalization Forces. Defining Global Strategies. Developing a Globalized Strategic Profile.

Reference. FasTrack Export Step-by-Step Process, pages 360-375. www.FasTrackGlobalizer.com.

Contact Tony.Kramer@FasTrackGlobalizer.com for more information

Benchmarking to Export and Globalization Best Practices

— 7 min read

Business leaders are constantly searching for ways to improve their businesses, often using the continuous improvement process to help achieve this objective. Benchmarking can be an important component of continuous improvement, particularly if personnel at all levels and across all functions of the company are involved in the process.

Have you considered benchmarking with a focus on export and globalization?

The point of benchmarking is to identify internal opportunities for improvement across a range of processes and functions. But, how often does company leadership benchmark the company’s operations and strategies against best practice standards for accelerating the company’s success in global markets, globalizing its organization, and globalizing its vision and strategies.

Why do it?

Many industries are global and most companies need to compete with domestic and international competitors. If company leadership does not develop and instill a global perspective, they will likely be surpassed by those competitors that do. Benchmarking is defined as “a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” What better way to trigger innovation, learn from other industry sectors, and gain information that will enable the company to become more successful globally.

What should be benchmarked?

The key to successful benchmarking is to clearly understand the processes, procedures, and methods that allow a company to become the best across a wide range of categories. Initially, it will be important to benchmark your organization and establish baseline information about your company. This information will provide a snapshot of your organization in relation to factors that are associated with success in international markets. It also initiates the product assessment process and examines the business reasons for entering and expanding into export markets.

A comprehensive Export and Globalization Benchmark Assessment should include both an Operational Benchmark Assessment and a Strategic Benchmark Assessment.

The Operational Assessment would benchmark all aspects of the company’s operations against best practice standards, including the company and management; products; markets and entry /expansion methods; operational plan and budget; organization, policies and systems; information and resources; export team and support services; competitive market price and offer; market entry and expansion preparation; production capacity; distribution network; sales and financing; shipping and collections; and the evaluation process.

Let’s use a real-life example to take a closer look at operational benchmarking. The company is a mid-size producer of hand tools. They benchmarked 39 subsets under the Operational Assessment categories listed above. One subset of company and management was management commitment. The best practice standard was as follows: “Management has allocated a portion of its time to the export market entry and expansion effort sufficient to lead the effort and has designated a strategic international leader to guide the companywide export acceleration and globalization process.”

The leadership team went through a very deliberate process to address areas of strength and areas of weakness. They engaged in discussion and sought input from others. They discovered that the time and guidance allocated to the international effort by the strategic international leader was significant. However, the international expansion effort was a low priority for the leadership as a whole. Management’s focus on domestic priorities was very high and on-going product issues further complicated the allocation of management time and leadership for the international expansion effort. Based on their findings, they gave themselves a score of 5 on a scale of 1 to 10. They detailed their decisions, actions to be taken, assigned responsibilities and established a timeline.

Other operational areas where the company scored 5 or less (scale of 1 to 10) in relation to best practice standards included after-sales product support; target market sales projections; integration of the domestic and international operational plan; organizational structure; intra-company coordination to implement the global expansion plan; access to information resources; selection of distribution channels in each target market; pricing and terms of sale for each target market; distribution partners (recruitment, selection, and start-up in target markets); sales negotiations; integrating export-related policies, procedures and systems into the company’s standard operations; shipping and documentation system; and establishing and evaluating sales and profits by country and product line.
In each case, the company developed and implemented measures to move in the direction of established best practice standards, as well as a timeline for implementation and re-assessment. The importance of making this a companywide effort cannot be over-emphasized.

Next, our hand tools company needed to take on a task that was even more challenging than the Operational Benchmark Assessment, and that was the Strategic Benchmark Assessment. Below is a brief summary of the tasks.

  • Profiling the industry’s strategic global players, strategic global market segments, strategic global country markets, and strategic global competitors in order to understand the company’s role or position in the global environment.
  • Assessing industry globalization forces such as market forces, cost forces, government forces, competitive forces, and other current or future globalization forces in order to understand key conditions that are propelling the globalization of the industry.
  • Assessing the extent to which the company’s strategies are globalized to be in balance with the industry’s globalization force including assessing and benchmarking the company’s strategies related to market participation, product standardization, activity location, marketing, and competitive moves.
  • Globalizing the company’s strategic direction including the future strategic product and market direction it will pursue and the future strategic competencies it will need to achieve in order to achieve maximum profitability and growth and strategic competitive advantage in the global market of the future.
  • Globalizing the strategic plan including strategic goals, initiatives, values, and mission in order to integrate its domestic and global strategies into a single globalized strategy.

This was their first attempt to consolidate and document their knowledge about the company in relation to the global industry and then compare those findings with best practice standards. They benchmarked 17 subsets under the Strategic Benchmark Assessment tasks listed above. On a scale of 1 to 10, the company scored between 2 and 5 on those ratings.

On the downside, there was a lot they didn’t know and they had a lot of work to do. The upside was that they saw the value of initiating an on-going process to collect and compile information and data that would enable them to become more competitive and more profitable.

Who does it and how often?

Many companies bring in someone from the outside, such as a management consultant, to conduct benchmark assessments. However, you may want to consider conducting the Export and Globalization Benchmark Assessment as an internal initiative. Depending on your company’s global experiences, you may find some of the tasks more or less difficult. Frequently you will find that you do not have information adequate to make a firm decision or that your judgements are somewhat tentative. Initially, you will use your knowledge, experience, and immediately available resources to work through the various components of the assessment. Over time, the questions raised during this initial pass will be revisited and increasing amounts of knowledge, experience, and resources will be brought to bear and your decisions and judgements will be updated. As mentioned earlier, getting personnel across all functions and at all levels involved in the process will be critical to success in terms of contributing information, ideas and ultimately buy-in for decisions, changes, and plans that result from the benchmarking.

Are you Targeting the Right Export Markets?

— 13 min read

Targeting high-potential export markets is one of the most arduous and, at the same time, most impactful processes a company can undertake.

Ask company executives how they chose their export markets and, in many cases, the response will be that the market basically chose them. This can be a natural evolution whereby the company is contacted by someone who wants to buy their product or serve as a distributor in a particular market. Over the years, a company can end up with representation in a significant number of countries based on opportunity rather than strategy.

On the other hand, there are companies that are not selling into any export markets but want to start up an exporting program. Where do they start?

Whether a company is new to export and looking to enter its first export markets or an existing exporter intending to expand into new markets, both companies could benefit by embarking on a targeting process that would help to ensure their commitment of resources to export markets would yield the greatest return.

Why target specific markets?

Too often, we spend our time reacting to inquiries from many countries around the world rather than taking a proactive position that focuses the company’s resources on a targeted number of high-potential country markets. If your company has limited resources for its global expansion effort, the strategy should be to target a limited number of high-potential markets and proactively apply a significant portion of the company’s available resources to enter, expand, and penetrate those markets.
For the rest-of-world (ROW) or non-target markets, the strategy should be to allocate only limited resources to react to inquiries. If you apply the “80-20 Rule,” you would allocate 80% of the company’s resources to proactively target the areas you have identified as high-potential markets that will produce 80% of the results. Conversely, you will apply 20% of the company’s resources to react to the ROW markets that will produce only 20% of the results.

Thus, the primary reason for targeting markets is that the opportunities for global expansion are usually greater than your limited resources, and you want to proactively focus on the highest-potential markets rather than letting others pull your company’s resources into low-potential markets.

How do you target markets?

The most effective way to tackle the targeting process is to think of it as a funnel going from many markets and very broad screening criteria to few markets and very specific screening criteria.

The top of the funnel will include a broad array of Countries of Interest from which you will identify Potential Markets (Screen #1) and then Best-Prospect Markets (Screen #2) and finally your High-Potential Markets (Screen #3). If you keep updating your information during your annual planning process, over time Best-Prospect Markets might move into the High-Potential Markets category and become new target markets. Initially completing this process can be challenging. But, once completed, you will have a wealth of information from which to base your decisions. Should you decide to focus on lower potential markets, you will have gained insights to perhaps off-set some of a market’s shortcomings or anticipate obstacles that may not have been apparent.

Starting the Process – Establish Countries of Interest

You may be tempted to start with a very small number of countries based on past inquiries, conventional wisdom in the industry, or other criteria. However, you should consider starting with a very broad list of countries.

There are almost 200 countries in the world. There is probably a high potential for your product in countries that you will miss if you select a very limited group of countries. Therefore, you might consider starting with all countries in the world. Alternatively, if you are focusing on only a specific region of the world, you might select all the countries in that region. Either way, as you go through the targeting process you will narrow the countries down to relatively few high-potential target markets based on a three-level screening process.

Once you’ve established the Countries of Interest, what’s next – Establish Market Selection Indicators

Next you will need to establish 3 sets of Market Selection Indicators to be researched and applied against country markets as they move through the funnel from Potential Markets (Screen #1) to Best-Prospect Markets (Screen #2) to High-Potential Markets (Screen #3).
The three broad categories of market indicators include environmental indicators, product indicators, and “other” indicators. Environmental indicators are useful in identifying the general business environment and the basic need potential of the market. Product indicators point directly to your specific product and include an assessment of hurdles and other indicators of your ability to be successful in the market. The “other” indicators are an array of factors that could apply to your product.

Whatever your product, there are Indicators of demand that you explicitly or intuitively use to target your marketing program in your domestic market. What are the indicators of demand in your domestic market? In the global market, the indicators of demand may be similar to your domestic indicators adjusted to different environments, cultures, regulations, and so forth. In this task you will begin to define the global market indicators for your product. You will use a mix of indicator types—data, market intelligence, expert opinion—to determine the highest potential markets for your product.

Ready for Screen #1 – Identify Potential Markets

Let’s assume you’re starting off with a large number of Countries of Interest. You will want to use Market Selection Indicators for Screen #1 that will be relatively easy to collect for all of the Countries of Interest and will enable you to eliminate those countries that don’t meet a minimum threshold. This first screen might focus on indicators such as the following:

  • Demographic. Population, growth rates, age structure, birth rate, urbanization
  • Economic. GDP, GDP growth, GDP per capita, household income, private consumption, interest rate, exchange rate, convertibility of currency, economic stability
  • Ease of Doing Business
  • Trade Agreement with the US
  • Other

At the end of this step, you should be able to select a limited number of countries (e.g. 20 or 30) to be included on Screen #2. To select these countries, you may use the total weight (see Assigning Units of Measure and Weights below) to rank your Potential Markets. However, there may be critical country markets that you want to either include (e.g., a critical customer is in that market) or exclude (e.g., the local economy is currently in a deep recession). In this case, use your judgment in finalizing the countries for Screen #2.

That wasn’t so bad, now on to Screen #2– Identifying Best-Prospect Markets

The next task in the targeting process is to narrow the list to your Best-Prospect Markets. You will start your screen with the limited number of countries selected in the Screen #1 for Potential Markets task and apply the Screen #2 market indicators. The market indicators for Screen #2 will be more challenging to obtain but, fortunately, we’ve already narrowed the country list significantly. This second screen might focus on indicators such as the following:

  • Social/Cultural. Education levels, literacy, family structure, ethnicity, language, religion
  • Political. Patent and trademark protection, legal system, international organization participation, political stability
  • Business. Practices, culture, rule of law
  • Export Hurdles. Export restrictions from your country to the market
  • Import Hurdles. Tariffs, non-tariff barriers, product standards
  • Use Hurdles. Cultural, lifestyle, technical, product life cycle
  • Demand. Size, growth rate
  • Customers. Need for product, ability to afford product, market segments and size
  • Infrastructure. Ports, inland transportation, rail transportation, communications
  • Inquiries. Requests for the product received from foreign markets
  • Other

Once again, you will apply the weights and calculate a total weight for each country. This weight, along with your judgment, can be used to identify and rank the second round of country markets (e.g. 10 to 15) as Best Prospect Markets.

We’re nearing the narrow end of the funnel – Screening for High-Potential Target Markets Screen #3

The Market Indicators for Screen #3 will likely be the most challenging to obtain as they really drill down into the demand and competition for your specific product. Below are examples of the types of Market Indicators that might be used for Screen #3.

  • Industry Sector. Production, rate of growth, number and size of local competitors, strengths and weaknesses of industry, imports of product from your country/world, exports of product to your country/world, competitors’ imports to country
  • Distribution. Defined distribution channels, distribution agreement laws and practices
  • Competition. Price, quality, service, technology, promotion, market share by domestic competitors, market share by non-domestic competitors
  • Complementary Products. Size of demand for complementary products or products on which your product may piggyback
  • Expert Opinion. Your judgment, industry leader opinions
  • Unique Indicators. There will undoubtedly be very unique indicators for your product that you will develop

As with Screens #1 and #2, you will once again apply weights and calculate a total weight for each country. This weight, along with your judgment, can be used to identify and prioritize your High-Potential Markets. There may be critical country markets that you want to either include or exclude in the final list of high-potential target markets. Again, use your judgment in making your final selection.

How many country markets should be included in the High-Potential list?

The number of target markets into which you plan to focus your global expansion program will depend on the resources your company has allocated to the program.

If your global expansion resources can address all the listed High-Potential Markets within the current planning cycle, then consider these markets as prioritized markets. However, if your resources are limited, you may want to deselect one or more of the target markets for the current annual planning cycle. The deselected, or secondary, target markets may be phased into the global expansion program over time.

At the conclusion of the targeting process you will have divided the world into three categories:

  • Prioritized Target Markets – markets to be entered or expanded in the current planning cycle.
  • Secondary Target Markets – markets to be phased in over time.
  • ROW Markets – all the non-target country markets in the world.

Market Indicators — Assigning Units of Measure and Weights

Each selection indicator will need to be assigned a weight scale. This scale will be used to calculate a weighted-rank order for a specific indicator. It will also be used to sum up a total weight for the indicators for a specific country. The total weight will help you to identify and prioritize the highest-potential markets and select the markets that will be used in your next screen.

The units of measure would be whatever makes sense for a particular indicator such as number, dollars, percentages, volume, and other customary units of measure. The weights that will be assigned for each indicator (e.g., Per Person GDP at under $5,000 = 1, between $5,000 and under $10,000 = 3, etc.) need to be defined using a scale such as 1-to-10.

Undoubtedly, some indicators will be more important in selecting your target markets than others. Therefore, when you are assigning weights for an indicator, important indicators may be scored on a 1-to-10 scale while less important indicators may be scored on a 1-to-5 scale. By using a higher scoring scale for the important indicators, you will give them more weight in the weighted-rank order process.

Where to look for Target Market Indicator Information —

As you establish your market selection indicators, you will also need to identify where you might source your data and information. In this process, you may find it necessary to adjust your indicators based on the availability and cost of the desired data and information. By specifying the sources, you will be able to update the data and information in your screening tables as the need arises over time.
Several sources can be used for collecting indicator data and information on almost every country market. These sources include resources such as theU.S. Census Bureau, Customs information, Euromonitor, Kompass, United Nations, U.S. Central Intelligence Agency World Factbook, and U.S. Department of Commerce. Some of the sources are fee based but may provide free access to low levels of data and information. Government agencies in the country of export may be some of the best sources of free or low-cost foreign market data and information. While many people use standard forms and tools to populate the information, there is also a newly developed software by FasTrack Globalizer to guide you through this process. The FasTrack Globalizer software allows you to input, analyze, and share information with your colleagues, all in a cloud base system to help you better manage your global strategy.

Your company’s records and database may be primary sources of data and information (e.g., quality foreign inquiries). You may need to review government export marketing reports; scan industry journals for market and competitor information; and talk with experts in government agencies, industry associations, and known exporters in your industry (including domestic and foreign competitors).
Your search for secondary and primary sources of selection indicator data and information can go on endlessly, but don’t let it. Your primary purpose is to make a rational judgment about the highest-potential markets for your product based on reasonably available and accessible data, market intelligence, and expert opinion. In future annual planning cycles you will reiterate this targeting process and continue to improve the sources for and quality of data and information.

If your product fits neatly into a narrow product classification code, collecting data may be easier than if the product is included in a broad product classification code or is a service or technology. For these types of products, finding relevant data and information for an indicator may, in some cases, become more challenging and require more creativity or, in other cases, become easier (e.g., you identify a complementary product for which there is abundant date/information).

All data and information needs to be weighed against the test of common sense. For that reason, it is imperative that you use your own judgment, as well as seek out the opinion of experts in your industry and market intelligence sources. Review trade journals, contact your trade associations, discuss your potential markets with government agencies, talk with known exporters to the country, quiz foreign visitors you meet at trade shows, and so forth.

It’s worth the effort –benefits will be realized company-wide

This targeting process, particularly if updated as part of major planning cycles, will enable you to focus on those markets that truly offer the greatest return. If product modifications are required, then you will be more confident making that investment leading to greater competitive advantage in a high-potential market. Personnel throughout the organization can become expert in selling to and servicing those markets that are going to generate the greatest return and long-term growth for your company. And, you might be surprised by the markets that you’ve been overlooking, as well as those where you’ve been “spinning your wheels.”

About this Author: This article is brought to you by Sandra Renner. Sandra has many years of experience in Global Exporting and is the Founder and Chair of the Board of FasTrack Globalizer. For more information on FasTrack Globalizer, please visit.