Shashank Shekhar

SYNOPSIS

Meaning
Reason of Exporting
Objective of Exporting
Factor of Exporting
Swot Analysis
Methods of Exporting
Its Advantage & Disadvantage
 Meaning

Exporting refers to the act of producing goods or services in one country and
then selling or trading them abroad. Exporting is usually conducted by the
company that manufactures the product or provides the service, through
either direct or indirect channels.
 GOOD REASONS FOR EXPORTING
 The first and the primary reason for export is to earn foreign exchange.

 Free exchange of ideas and cultural knowledge opens up immense business and trade
opportunities for a company.

 Exporting goods, an exporter also becomes safe from offset lack of demand for seasonal
products.
 Objective of Exporting

 Identifies what you want to achieve from exporting.
 Lists what activities you need to undertake to achieve
those objectives.
 Includes mechanisms for reviewing and measuring
progress.
 Helps you remain focused on your goals.
 Factor Affecting the Exporting

1. Geographical Factors
o Country, state, region,
o Time zones,
o Urban/rural location logistical considerations e.g. freight and distribution
channels

2. Economic, Political, and Legal Environmental Factors

o Regulations including quarantine,
o Labeling standards,
o Standards and consumer protection rules,
o Duties and taxes
3. Demographic Factors
o Age and gender,
o Income and family structure,
o Occupation,
o Cultural beliefs,
o Major competitors,
o Similar products,
o Key brands.

4. Market Characteristics
o Market size,
o Availability of domestic manufacturers,
Agents, distributors and suppliers.
 SWOT Analysis
 STRENGTHS

 Patents

 Strong brand names.

 Good reputation among customers.

 Cost advantages from proprietary know-how.


 Exclusive access to high grade natural resources.

 Favorable access to distribution networks.

 WEAKNESSES

 Lack of patent protection.

 A weak brand name.

 Poor reputation among customers.

 High cost structure.

 Lack of access to the best natural resources.

 Lack of access to key distribution channels.

 Opportunities

 An unfulfilled customer need.

 Arrival of new technologies.
 Loosening of regulations.
 Removal of international trade barriers.

 Threats

 Shifts in consumer tastes away from the firm's products

 Emergence of substitute products.
 New regulations.
 Increased trade barriers.
Methods of Exporting

Direct
Exporting

Indirect
Exporting
 Direct Exporting & its Advantage

 Direct exporting means you export directly to a customer

interested in buying your product. You are responsible for
handling the logistics of shipment and for collecting payment.
 ADVANTAGE

 a greater degree of control over all aspects of the transaction.

 potential profits are greater because you are eliminating intermediaries.
 - You know who your customers are.
 - Your customers know who you are. They feel more secure in doing
business directly with you.
 INDIRECT EXPORTING
 Indirect exporting means selling to an intermediary, who in turn sells your
products either directly to customers or to importing wholesalers. The easiest
method of indirect exporting is to sell to an intermediary in your own country.
 ADVANTAGE
 It's an almost risk-free way to begin.

 It allows you to continue to concentrate on your domestic business.

 You have limited liability for product marketing problems.

 DISADVANTAGES

profits are lower.

 Lose control over your foreign sales.

 We very rarely know who your customers are, and thus lose the opportunity to tailor your
offerings to their evolving needs.