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Stages Approach to Exporting. By Michael McDermott. Literature on Exporting. Focuses upon the following issues: Models of export activity Barriers to export activity many of these have been removed first by www. and now by Social Media Assistance provided to exporters
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Stages Approach to Exporting By Michael McDermott
Literature on Exporting Focuses upon the following issues: • Models of export activity • Barriers to export activity • many of these have been removed first by www. and now by Social Media • Assistance provided to exporters • Critical success factors in exporting
Models of Export Activity • These tend to emphasise an incremental, step-by-step, approach • But many companies are ‘born globals’
Export Models Johanson and Wiedersheim (1975) - (based upon four Swedish case studies) • No export activities • Export via independent reps - agents • Establish overseas subsidiary • Overseas production
Johanson and Vahlne (1975) • Emphasises that as knowledge increases, so does willingness to venture international • Lack of knowledge impedes progress • Knowledge comes from Experience
Bilkey & Tesar (1977) Six stage model • Not interested • Fill unsolicited • Actively explores opportunities • Exports on an experimental basis to psychically close markets • Firm is experienced • Looks to export to psychically distant markets
Cavusgil (1980): Six Stage Model • Domestic marketing • Pre-export stage - searches for info & evaluates feasibility of undertaking exporting • Experimental involvement - psychically close country • Active involvement - more new countries, direct exporting, increase in sales
Cavusgil (1980) • Active involvement - • more new countries, • direct exporting, • increase in sales • Committed involvement • Constantly making choices between allocating resources to domestic or export markets
Czinkota’s Stages Model of Exporting (1982) • Completely uninterested • Partially interested • Exploring • Experimental • Experienced small • Experienced large
Czinkota • Not interested • Fill unsolicited • Actively explores opportunities • Exports on an experimental basis to psychically close markets • Disappointed exporter • Temporarily declining exporter - plan to raise exports in the future • Firm is experienced • Looks to export to psychically distant markets