GETTING STARTED: An overview of International Business Strategic Development

1. GETTING STARTED: An overview of International Business Strategic Development

3. Are we really prospering in this big world? • Are we, the women, playing a role ? • Are we taking advantage of the opportunities? • Yes, but not enough!

4. Despite the challenges there are always opportunities • The era of globalization ……. Be part of it! • The global market • For small companies and large companies

5. EXPORTING COMPANIES • 97% are small businesses • 40% of small businesses are owned by women • 30% of companies that export more than • half of their products are owned by women • Sourse: The SBA

6. Can Women claim a piece of the pie? Absolutely, positively! Our tools: • Knowledge • Professionalism • Competency • No Taboos • “Be Strategic, be prepared”

7. THE PYRAMID OF STRATEGIC EXPORT BUSINESS DEVELOPMENT Core Targeted Business Development Trading

8. Trading: The most common form, especially with small or new to export companies • Advantages • Small investment required • Limited international knowledge required • Disadvantages • Vulnerable to external factors • Failure is common

9. Targeted Export Business Development • Best approach to export • Proactive, not reactive

10. Core • Local Manufacturing • Joint Ventures • Acquisitions

11. Developing the strategy Areas to consider • Why export ? • Company commitment • Your product • The potential markets • Market entry strategy • Export financing • Legal and regulatory requirements • Partner selection • Cultural differences

12. The difficulty in getting started:FOCUS 1. Market selection 2. Product Selection 3. Partner Selection

13. Market Selection • Political Environment • Economic Environment • Social / Cultural Environment • Urbanization • Income level • Market size • Market Access / Entry Barriers • Product Potential / Consumption / Usage • Competition • Distribution Infrastructure

14. 2. Product Selection The four As: Appropriate Available Affordable Advertisable

15. 3. Partner SelectionDefine the Type of Partner You Want This excludes JV and local manufacturing, which is at the top of the pyramid Types of companies available: Indirect: 1. Commission Agents 2. Export Management Companies 3. Export Trading Companies Direct: 1. Sales representatives or agents 2. Distributors 3. Foreign/Domestic Retailers * Choose the best for your company and product *

16. Available Resources 1. Seek help from the government 2. Counterpart recommendations 3. Trade missions 4. Trade shows 5. Matchmaking functions 6. Web sites

17. DISTRIBUTOR SCREENING, INTERVIEWING AND SELECTION 1. Get as much information as possible 2. Develop standard screening tools for better comparison 3. Visit them

18. What to Look for When Setting up a new distributor/agent • Company Organization • Financial Competency • Sales / Distribution Network • Logistics / Regulatory Experience • New Product Introduction Experience • Non-Competitive Products • Compatibility • Marketing / Brand Building Experience • Communications

19. Legal /Governmental / RegulatoryConsiderations • The distribution agreement • Have it or not? • When? • Clauses? Grant exclusivity or not? • Exit strategy Seek the help a lawyer who specializes in this field.

20. Legal, Governmental, RegulatoryConsiderations Trademarks/Intellectual property-Piracy-ProtectionProduct registration-License for entry Seek the help a lawyer who specializes in this field.

21. Maintain a good working relationship 1. Get to know your agents / distributors 2. Develop mutual trust 3. Understand cultural differences 4. Always ask, “What can I do to help you do a good job for us?” 5. Be partners - not commanders 6. Use different techniques and methods to motivate them 7. Spend time to train them at all levels 8. Visit in regular intervals and evaluate their performance

22. Grow the business and be successful • Develop a strategy and a marketing plan together • Each of the two partners should know their • responsibilities and be accountable for them • Invest in the business together • Share marketing costs and responsibility

23. Available resources • World Trade Center of Greater Philadelphia • OIBD • USEAC (US Export Assistance Center) • SBDC • SBA • FAS ( Foreign Agriculture Service) • Embassies and Consulates - Trade Attaches • Many others

24. What is aWorld Trade Center? The perception: A WTC is a building The reality: It is an organization that offers trade services The ultimate combination: A building plus services

25. How can we help you? The World Trade Center of Greater Philadelphia (WTCGP) is a non profit organization and licensed member of the World Trade Centers Association (WTCA). Our mission is to promote economic development through international trade that leads the Greater Philadelphia region to economic prosperity.

26. Our Services • Market Research • International Trade Consulting • Market Access Grants • Trade Missions • Education and Training • Networking • Reciprocity with 300 WTCs and • 750,000 companies members

27. Today’s international business challenges: • The world economy • War / Political Instability • Terrorism / Effect on business • Travel restrictions • Anti US sentiments • Free Trade Agreements and Unions (EU)

28. CONCLUSION Homework + Right Market + Right Product + Right Partner = SUCCESS Women entrepreneurs are IN!