Methods of evaluating your export activities
During the course of export activities, it is worth conducting an evaluation to identify whether these activities are effective and if they add value to the company. Each enterprise will approach the profitability of its exports individually, taking into account various factors. After a year of export activity, the company should evaluate its international trade activities by analysing the following individual factors:
- Analyse if your export profit has a constant value, what impact do seasonal fluctuations have on profitability, do they cause large decreases? Also answer the following questions: Should you change prices due to seasonal fluctuations? Is your export activity struggling with payment gridlocks, i.e.: waiting too long for payment from intermediaries?
- What is the current structure of export costs compared to export profits?
- Perform an analysis of your costs relating to the production, handling and shipping of goods for delivery to the representative / target customer.
- What market position is your product starting to achieve?
- Do you systematically increase your company’s percentage market share? What factors within the market cause fluctuations in gaining the market position of your product? Does the chosen distribution strategy have a positive impact on product sales?
- What image does your product have amongst your consumers?
Check how the product / service is perceived by customers, is its image consistent with the planned marketing strategy? If the product has not reached the required level, analyse what actions you should take to change it.
- What level of recognition does your product have on the market?
Take actions similar to point six. If the recognition of your brand is not very high, get involved in national and regional expo and trade fairs to promote your brand.
- How has your company’s image been enhanced due to exporting?
- How has exporting impacted on your understanding of the market? Do you take advantage of the increased knowledge?
- Is your broker effective in selling your products? (in the case of indirect exports).
- Is your foreign trade unit effective? (in the case of direct export).
- Analyse the work of your export departments.
Are they effective? Did they fulfil the goals planned for the first year? What actions are needed for them to become more effective?
- Does the company need new quality certifications?
What kind of authorisation does the company need to become more competitive on the foreign market?
As an Internationalisation Service Officer in your organisation, you will be the first point of contact for small and medium sized enterprises in the area of international trade activities.
In this chapter, basic information about direct and indirect exporting was outlined, the fundamentals involved in developing an export strategy was examined and the requirements for organising a business for exporting were discussed. The following chapters will discuss further methods of expanding a business internationally.