Today’s business is inevitably international: any type of product or service can and must be commercialized in a global market. Business opportunities in this respect are multiple, further owing to promotions that many countries are implementing in this direction. International trade is promoted in order to improve the national situation and to increase the extent of internationalization of Italian companies. Selling abroad means increasing export, widening your target and the potential for growth of your business.
Foreign trade is clearly more costly than national trade: no doubt the entrepreneur or company that chooses to sell internationally will make higher investments and at the same time, their market vision will be projected towards a global future.
Reasons for investing in foreign trade
Foreign trade is surely a strategic decision, if carefully evaluated.
Detailed export planning is fundamental and must include everything regarding trade, establishing the right contacts, travelling expenses, adaptation of products or services to the needs and requirements of the local market and so on.
The target markets
Looking beyond national borders allows you to enrich your entrepreneurial background, while acquiring specific abilities and skills for a particular market.
Often the location of the market is decided before initiating the internationalization process and even represents the key motivation.
Whereas when the decision to go international is the result of strategic planning, the choice of the benchmark market represents without a doubt one of the focal points of the process.
Focusing on your objectives, strategic planning should take into account these key points when choosing the right location for going global: infrastructure, the economic, political and cultural environment; import market share; pricing barriers if any, trends and forecasts for growth, analysis of the market and main competitors.
There is no ready-made golden rule or list of pros and cons for this purpose.
Foreign trade strategies
Once the market location has been identified, then it’s time to plan the strategy.
A strong competitive strategy that guides the company in going international includes a competitive analysis of the chosen sectors and the procedures for moving into the territory. Other fundamental decisions include choosing the right local partner, organization and any changes necessary for adapting to the local market, pricing, sales and payment conditions.
Target marketing and communications complete and promote this strategy, all of which must absolutely be sustained by an efficient business organization.