1. Growth: when domestic market might be over flooded or demand decreased possibilities may arise linked to exportations.
2. Diversification: diversifying risk means not to depend only on our domestic market.
3. Sales volume: accessing bigger markets, with higher sales volume may allow economies of scale.
4. Reaction against high competition:
particularly from international operators introducing their products and services in our country
5. Prestige: we will achieve higher visibility and brand awareness from both clients and competitors
6. Survival: some companies may found abroad their main and natural market when domestic market is at risk
7. Length: life product cycle will increase when introduced in new markets.
8. Competitive improvements: Competition in international.
Considering all the issues mentioned above the company may decide to go internationaland then a self-analysis exercise and evaluation is advisable to check its readiness for this process. Questioning the following issues will
provide a clear picture:
• Exporting does not mean to attend a specific order or an isolated contract, but the ability to maintain a permanent business stream.
• How is the cash flow position in my business? Is it possible to withstand a disbursement that will not report an immediate return?
• Do I have a flexible and lean production chain? The demand uncertainty is multiplied as we are focusing in several markets.
• Does my business have a clearly defined its business strategy? Which products within my business´ lines are ready for exportation?
• Can I access reliable resources for selecting the optimal target market?
• Can my product be competitive in the new market we are intending to enter?
In the end, going abroad with minimum guarantees of success, it is a business decision that should be considered calmly and accompanied by a series of implementation
measures to achieve success. CE International Consulting offices have the experience and means to help Spanish SMEs in this complex, while necessary, process.