After evaluation of company’s key capabilities, strengths and weaknesses, the next step is to start evaluating opportunities in promising export markets. It involves the screening of large lists of countries in order to arrive at a short list of four to five. The shorting method should be done on the basis of various political, economic and cultural factors that will potentially affect export operations in chosen market.
Some factors to consider include:
Geographical Factors
Time zones,
Urban/rural location logistical considerations e.g. freight and distribution channels
Economic, Political, and Legal Environmental Factors
Regulations including quarantine,
Labelling standards,
Standards and consumer protection rules,
Duties and taxes
Demographic Factors
Age and gender,
Income and family structure,
Occupation,
Cultural beliefs,
Major competitors,
Similar products,
Key brands.
Market Characteristics
Market size,
Availability of domestic manufacturers,
Agents, distributors and suppliers.