At this preliminary stage, the internationalization project is structured. In other words, the structure of the company is checked, Identifying its strengths and areas for improvement. You then need to understand what you want to achieve, analyzing your production and commercial capacity, your organizational structure, then defining a medium/long-term investment budget and, of course, return expectations. Finally, you define operational activities, draw up a project plan, and share and validate your plans and business model.
The second step is to analyze the target market and one's product. In this regard, the analysis of certain variables, such as the general level of imports into the target country. A market with a higher level of imports than exports certainly represents a country more likely to import a given product, and therefore potentially more attractive to your business. In addition, is the country growing economically and demographically, or is it stalling? It is logical to think that a growth phase is matched by better future prospects, and this may indicate an interest in products in your field in the years to come as well. Another question to ask yourself concerns the level of appreciation of Made in Italy: by analyzing the levels of imports from Italy, you may find that the products offered by your business are highly liked in one country rather than another. Finally, another element of fundamental importance is then the presence of customs duties, and more generally the legislation of the destination country. Consider product requirements, The required certifications and costs at customs is indeed a fundamentally important step.
At this stage we consider the possible ways in which market relations with another country can be developed, and they are basically of two types:
Finally, the research developed is compiled into a single final document that you can consult at any time. This report will be the reference point for putting in place the business and implementation activities proposed earlier.
Thanks to our ability to build structured paths and to perform analysis, as well as the essential ability to have view of markets, we apply each of these steps with each client in the more than 900 projects we have successfully completed over the past 20 years, contributing to the growth of Italian businesses abroad.
Do you want to find out how to structure an effective export project, considering the elements mentioned in this article? Then contact us to schedule an initial meeting by clicking below.
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The fundamental steps are four: kick-off, product and market analysis, choice of entry mode and drafting of the Export Plan. Each step prepares the next: first, the company is assessed, then the target market is identified, then the entry method is chosen and finally, everything is compiled into an operational document.
The kick-off is the preliminary phase in which the project is structured. The company structure, strengths and areas for improvement are analyzed, production, commercial and organizational capabilities are evaluated, a medium/long-term investment budget with return expectations is defined, and the project plan is finally drafted and the business model and operational activities are validated.
The level of a country’s imports must be evaluated in relation to its exports, economic and demographic growth, the appreciation of Made in Italy measured by imports from Italy, and the presence of customs duties. Local legislation, product requirements, required certifications, and customs costs also count, which affect the actual affordability of entry.
A country with higher imports than exports is generally more likely to buy products from abroad, so it represents a potentially more interesting market for a given product. This indicator should be read in conjunction with economic and demographic growth, which suggests whether interest in your sector can be maintained even in the years to come.
In the direct mode, the company is present in foreign markets without intermediaries: it is the most effective but also the most expensive. In the indirect mode, intermediaries such as distributors are used, who manage commercial and after-sales activities: it costs less but is less effective. The choice depends on budget, objectives and company structure.
The Export Plan is the final document that compiles the research carried out in previous phases: business, product and market analysis and entry methods. It remains available at all times and becomes the reference point for carrying out the commercial and implementation activities proposed as part of the internationalization process.
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