INTERNATIONAL MARKETING 6e Chapter 8 The Export Process Copyright 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
Copyright © 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida 32887-6777. INTERNATIONAL MARKETING 6e The Export Process Chapter 8
Motivations to internationalize Proactive motivations Profit advantage Unique products technological advantage Exclusive information Managerial urge Tax benefit of a Foreign Sales Corporation(FSC) o Economies of scale Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-2 Motivations to Internationalize Proactive Motivations Profit advantage Unique products Technological advantage Exclusive information Managerial urge Tax benefit of a Foreign Sales Corporation (FSC) Economies of scale
Motivations to internationalize Reactive Motivations Competitive pressures Overproduction Stagnant or declining domestic sales Excess production or service capacity Saturated domestic markets Proximity to customers and ports Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-3 Motivations to Internationalize Reactive Motivations Competitive pressures Overproduction Stagnant or declining domestic sales Excess production or service capacity Saturated domestic markets Proximity to customers and ports
Change Agents Internal change agents Enlightened management ° New management Significant internal event Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-4 Change Agents Internal change agents • Enlightened management • New management • Significant internal event
Change Agents External change agents Foreign demand Other firms and distributors Banks and other service firms Chambers of commerce Export agents Governmental activities Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-5 Change Agents External change agents • Foreign demand • Other firms and distributors • Banks and other service firms • Chambers of commerce • Export agents • Governmental activities
Export Involvement Key managerial characteristics affecting the desire for export involvement · Education International Exposure ° Expertise International orientation Commitment Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-6 Export Involvement Key managerial characteristics affecting the desire for export involvement • Education • International Exposure • Expertise • International orientation • Commitment
Exporting and internationalization o Internationalization stages Innate, or start-up, exporters Partially interested exporter Experimental exporter ° Export adaptation Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-7 Exporting and Internationalization Internationalization stages • Innate, or start-up, exporters • Partially interested exporter • Experimental exporter • Export adaptation
Exporting and international lization Firm-level stages of internationalization Stage 1: The completely uninterested firm Stage 2: The partially interested firm Stage 3: The exploring firm Stage 4: The experimental exporter Stage 5: The experienced small exporter Stage 6: The experienced larger exporter Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-8 Exporting and Internationalization Firm-level stages of internationalization • Stage 1: The completely uninterested firm • Stage 2: The partially interested firm • Stage 3: The exploring firm • Stage 4: The experimental exporter • Stage 5: The experienced small exporter • Stage 6: The experienced larger exporter
Exporting and international lization Given that the firm you are working for fits with the profile of a completely uninterested firm HoW do you help the firm to be interested in exporting · Persona/ effort External information Strategy Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-9 Exporting and Internationalization Given that the firm you are working for fits with the profile of a “completely uninterested firm” How do you help the firm to be interested in exporting? • Personal effort • External information • Strategy
Exporting and international lization Given that the firm you are working for fits with the profile of a partially interested firm How do you help the firm to be interested in exporting? Personal effort External information Strategy Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 8-10 Exporting and Internationalization Given that the firm you are working for fits with the profile of a “partially interested firm” How do you help the firm to be interested in exporting? • Personal effort • External information • Strategy