The significance of export to the Netherlands economy

cture 1 What is export management? The significance of export to the Netherlands economy • 1600 – 1700: the Golden Age:  The Netherlands: a democratic, more liberal society: room for free entrepreneurship, free development of ideas and innovation  Dutch trade grew: agricultural products (grain) sold over Europe  A rich merchant class developed;  Bank services developed: loans to businessmen; investments in the V.O.C.;  The Netherlands became a major world player: oversees trade;  Now: NL is the 9th largest export economy in the world! Consequences: The Eu brings more things - Hardly possible to “escape” from foreign business relationships in your future business life; - Know your languages, esp English! German too The export plan: contents in brief 1. General introduction about the company and your assignment for that company => project plan 2. The export position assessment of the company: where do they stand? 3. The International Market Selection: which country to aim at? 4. The industry analysis of that country 5. The commercial analysis of the country: buyer characteristics and behavior; intermediaries in the channel, competitor identification and their strengths / weaknesses => Market Research Plan 6. SWOT + options + option selection 7. Entry mode: how to make the commercial entry to the country? 8. The export marketing strategy; 9. The export sales and instrumental strategy 10. Estimation of costs and revenues of the export plan You need 3 things: - Customers find important - S/w the principal - S/W of competitors  Look in the eyes of the customers. “IN EXPORT, SOMETIMES THINGS MIGHT GO RIGHT” Not only the usual risks: • Market risks (market size / growth; customer wishes change) • Economic risks (buying power, inflation, etc.) • Technological risks (your products become “outdated”) • Etc. Typical export risks: • Political turbulence (revolutions, military coups; Russia – the west) • International conflicts (wars: Saddam (Iraq or Kiwait) embargo’s) • Logistic risks (accidents, even modern sea piracy) • Climatological risks (HBG in Surinam) • Cultural “risks” • Finding your products “copied” (China, Indonesia) => PREPARE WELL! DO RESEARCH AND PLAN! ! There is an always a risk, but when you are international there will be more risks.