SMEs: Explore new markets in successful yearsmarkets, however, should also not be blinded through their fascination - a case study based on the German market which may be useful for other markets too
Germany is called ‚export champion’ – however, the impressive figures only reflect to a minor percentage the small and medium-sized companies.
The sheer total size of all exports is put into perspective, however, when looking to its neighbour countries with regard to the exports per inhabitant: Such figures show – as per to the CIA-Worldbook 2005 – the following results: Germany abt. US$ 12.330, Austria abt. US$ 14.900, Switzerland abt. US$ 19.800 and Belgium even abt. US$ 25.900. Accordingly there still is room for improvement, especially as the industrial basis of these neighbour countries are not really comparable with Germany.
Facts and hindrances
If one takes into consideration that the export business in this case reflects abt. 30 % of the total GDP, the average German company should export roughly this percentage. As, however, bakeries, shoemakers as well as trading companies - if at all – export at smaller rates, a ’healthy average’ for the remaining industrial companies would be an export percentage of abt. 50 – 60 %.
This is by far not reached yet by SMEs as the local market was for quite some time sufficient for them. And for that reason they did not really care for foreign markets. Marketing and sales across the borders remained a field of growth which did not cross their mind: “Why should I bother for foreign markets, if I can sell without problems here ?”
From my own experience:
Who deals with international marketing and trade will certainly quite often have met this ‘disavowing’. I never forget that a company years ago told me ‘We are absolutely satisfied and cannot even supply what is asked for’. 6 months later I called them again and had to learn that they were shortly before becoming bankrupt. The reason: They concentrated too much on just a few large clients whose orders were cancelled due to the crises in Asia and Latin America at that time.
This carelessness in most cases is basing on the fact, that the companies are privately owned or owned by a small group of people. Unless they have already some experience in export sales one cannot assume that one can find internationally thinking personnel.
Advantages and support
The international trade picture is in a permanent movement and we have to participate – to our own benefit.:
Exporting does not only create or stabilize working places in the home market but the respective enterprise will also become more independent from the local business climate and thus more healthy and resistant against economic fluctuations anywhere in the world. In general to export is a good sign of a vital and competitive enterprise which can resist a local recession quite well. And this will also be noted as well by clients (for their own security choosing a supplier) as by the competition.
Some countries do have quite good export supporting agencies – who even are active in other markets and give advice – as per their general knowledge – from the respective local market.
What they cannot do, however, is to accompany the companies practically into the different markets - and if, the company has to deal with quite some specialists for each separate market. This is mainly due to the fact that they do not have the insight into the company and its future plans, i. e. it is difficult for them to adapt the overall marketing procedures in a way which suits different markets (for this specific company and its specific products) at one time and also is oriented at the financial possibilities of the company.
Therefore companies may often have very good market information, however, do not know how to transform them into soon positive results as a proper coordination of all facts and figures with the internal and external possibilities of the company are not possible.
Especially for Europe – the biggest conglomerate of industrialized markets – with its different languages and mentalities. At this point in time consulting companies having specialised in international marketing and sales procedures begin with their support – focused on this specific company.
Seven rules before internationalizing
When preparing for export business the following focal points should be taken into consideration:
1. Look for professional support who analyses your business potential and identify what you should be able to handle in order to be successful in the international markets . and possibly also where.
2. Look for professional support to evaluate the potential of your personnel. Offer an incentive to the willing people so that they study further according to the needs of the international markets – for example through internal or external trainings and seminars.
3. The elaboration of a thoughtful marketing plan will give a lot of hints and facts and you can fall back on them and adjust your targets and procedures if need be.
4. Try to think ‚globally’’. Look at trends in magazines of your industry or ‚feel’ them during meetings of your industry groups. Take your time to learn more about international marketing and how the instruments can be used for the benefit and future stability of your company.
5. Do not underestimate international sales. It is not really easy – yet it is also no miracle ! In fact many companies err in their expectations just because they had a contract from another country once in a while.
6. Learn how to treat international clients/markets. Until you have your own employee with special knowledge you should rely on professional assistance which can also lay the basis for your future organisation and handling, thus saving a lot of time and money otherwise spent into ‘trial and error’. You do not do good to your company, however, if you cannot really rely on the assistance – i. e. sufficient proof of ability and testimonials should be available.
7. Set-aside a special budget for your internationalization. If you have a successful business in your home market right now it is reasonable to plan some of the profits for the future.
Conclusion: Undock from the local business climate
The best moment to prepare oneself is always the time when one is not forced to do it. As long as the business on the home market is successful it will be relatively easy and also the resources needed are available. Decision makers should use this security to work towards the future i. e. not to depend solely only on one market/region (or only a few big clients).
Country experience: http://www.internationales-marketingkonzept.de/en/
Phone: +49-7582-933371, Fax: +49-7582-933372
Michael Richter – International Marketing- and sales consultant – concentrates for more than 35 years on strategic marketing planning as well as marketing and selling of investment goods and long-lasting consumer goods in/to all 5 continents – since 1991 he works as an independent marketing consultant, especially for SMEs worldwide. In addition he holds national and international/internal and external lectures on international marketing matters – especially European Union.
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release SMEs: Explore new markets in successful years here
News-ID: 29070 • Views: 1064
More Releases from Michael Richter - International marketing and sales consultant
Economic Cutting of Metal Tubes – from Aluminium to Titan
Berg/Germany, 11-26-2014 Without metal tubes cut to a specified length – out of various metallic materials – many products cannot fulfil their proper functions. Thus an optimized and economic handling of the tubes before and during the cutting process is particularly important. The German company Weerth Handling Systeme GmbH, Berg/Baden-Württember, has specialised from its foundation in 1986 on the chipless cutting and machined end conditioning of all kinds
Material-saving Cutting and Treatment of Metal Tubes
Berg/Germany, 18. 6. 2014 Metal tubes – from aluminum to titanium – are essential elements of many products. Consequently a material-saving and exact cutting of the basic material material combined with a directly linked further treatment results in cost savings and thus an increase of earnings. Basing on own patents the chipless and low-burr cutting system of Weerth Handling Systeme Gmbh, Berg/Germany, including the special ‚tear-break‘-system, built-up its national
Metal tubes: Handling and Processing by Systems of Weerth Handling-Systeme GmbH
Seekirch 11.2.2014 Update: Many industries need metal tubes cut to exact lengths (millimeters) for their products - out of many metals and alloys. Especially adapted and extremely economical working systems are supplied by Weerth Handling Systeme (WHS), Germany/Baden-Württemberg. The system advantages are considerable. WHS is one of the first manufacturers worldwide, producing innovative machinery and plant for the chipless and low-burr-cutting of metal tubes, including the self-developed, patented, tear/break-system. WHS is a
International business is calling – already for long and still … - especiall …
Seekirch/Germany, February 9, 2013 Ulrich Grillo, the new President of the Federation of the German Industry, said last month (referring to German companies): “Especially business with non-European countries shall drive the German economy”. Even when looking to Germany as the ‚export champion‘ he is still right. However, evaluating the basic export figures as ‘exports per capita’ Germany is – as per World-Factbook of the CIA, 2011 – see Wikipedia - still
More Releases for German
German SkyWay DataCenter starts operating
The TIER III data center located in St. Ingbert, Germany celebrates its opening with a special welcome package: The SkyServer Performance und Power are furnished with effective high-end Xeon processors and high-grade FB-DIMM random access memory. SkyWay is a TÜV certified data center, which offers colocation, hosting and root servers. The SkyWay team relies on long-standing experience in the fields Internet, networks and high availability solutions. Being a full-service provider,