What is an export company?
Hi everyone! Today from Venerable Capital, experts in the marketing and export of alcoholic beverages and tobacco, we want to talk about what is an export company like ours and what are the advantages of carrying out this service.
What is an export company?
An exporting company is one that markets his products or services beyond the borders limits of the country where it is based. The companies that are dedicated to export must be previously consolidated in the national market, in addition to having a recognized brand. Once these requirements have been met, the company begins an internationalization process in which it explores new markets.
Steps to start the internationalization process
The first step in starting to export his products to other parts of the world is to develop an export plan. With this plan, all the export actions to be carried out must be analyzed and described.
This process begins by analyzing the potential of the company to export, identifying the possible products for it and knowing the financial capacity of the organization. In this way, the company will know the aspects that need to be improved and it will be aware of the real situation in which it finds itself.
After this, the company must properly select the target markets where it wishes to operate, to know if it is possible to do so or not. This entails analyzing the risks, competition, opportunities and peculiarities of the country, since the company must take into account the cultural differences it has with respect to its country of origin. The company must adapt to all of them in order to then identify potential clients and draw up its positioning plan, applying economies of scale as far as possible.
Once the internationalization plan is complete, the company can begin to develop its activity and export to those target markets.
The objective of having this well-defined and controlled export plan is to minimize risks and be successful in your activity.
Advantages of an export company
Some advantages offered by exports are the following:
- Risk diversification. Reaching new markets and clients offers greater risk diversification, since it does not depend exclusively on the national market. In this way, the impact of adverse economic situations in the markets in which it operates is minimized.
- Business Growth. Attracting new clients beyond the national market brings with it an increase in income.
- International positioning. With internationalization, the company is able to achieve greater brand positioning both in the country of origin and globally. An improved reputation in new markets generates a positive change in attitude towards the brand.
- Promotion of economies of scale. The economy of scale is a situation in which the company reduces its production costs by expanding. This situation also makes it possible to improve the product, so that the company becomes more efficient and competitive in the international market.
Venerable Capital as an export company
Venerable Capital’s core business is to export and market a wide variety of tobacco products and beverages worldwide. Our main strategic business units are manufacturing, marketing and distribution. We carry out the manufacture of our products in Spain, to later export and distribute them, especially in the different markets of Africa, Asia and Europe.
And with this we have finished for today, we hope that our post has served as information and do not hesitate to contact us for any questions or queries. Stay tuned to our blog so you don’t miss any news. See you soon!