Exporting products to international markets and competition with other products in the same sector requires taking into account the following three preconditions in the design and creation of a product:
- Right design
- Carefully planned packaging
- Certification (of product and packaging materials)
The globalization of the markets results, more than ever, in the entrance of many companies, whether they are ready to go global or not. Their entrance in the global market presents opportunities but can also pose risks; therefore, the strategy for selecting the export products must be carefully studied and not be handled as an opportunistic prospect.
The advantages of exporting products in foreign markets include:
- Economies of scale
- Higher sales
- Higher profits
- Decreasing the company's dependence on the domestic market
- Acquiring knowhow
- Enhancing the position of the product in the domestic market
In addition to the opportunities presented to the company for development and expansion, often there are also challenges and threats, which must be promptly identified and addressed.
- Higher costs of production or operation
- Adjustments in the company management
- Competition
- Long-term investment performance
- Bureaucratic procedures
At first, it should be noted that the businessman must be aware of and take into account:
- The products’ competitiveness
- The company's human resources
- The company’s funding
- The expectations and targets
In order to investigate the product’s position in the foreign markets, the businessman must take into account factors such as:
- Who is the target customer?
- Which are the features of the product itself?
- What is the company’s productive capacity?
