LEARNING TO EXPORT – COMPETITION
LEARNING TO EXPORT – COMPETITION
An export results from some factors, depending on the dependence of countries or commercial interests, which are the result of Exchange, Need and Competition.
In this text, we will talk about Competition.
Learning to Export – Competition
Usually, this is the most common reason in international export and import operations, in which companies buy and sell, according to the market and competitiveness.
Anyway, the Competition or competitiveness is verified by the analysis and comparison of 3 factors:
a) Price
The product or service of Company A, from Country A, must present the lowest cost price to the importer (Company B, from Country B), calculating all costs until the final destination, including international freight, international insurance, internal transport, customs expenses and taxes. This total cost of comparison we call the nationalized cost.
b) Time (Deadline)
The product or service has to be delivered by Company A, from Country A, in the shortest possible time, since deadline, for Company B, from Country B, can be a necessity or a very important factor that even implies in costs.
c) Quality
The product or service of Company A, from Country A, has to have the best quality compared to competitors, because quality can mean more safety and more results for the importer, Company B.
Learning to Export – Competition
Competition Generalities
Therefore, “Price”, “Time” and “Quality” are the factors that determine the winner of a Competition. The occurrence of the 3 factors together means that the exporter who has them should not lose any business. However, it may be that only one or two of the factors are decisive for the choice of product or service, and this has to be identified by the exporter.
In the most common cases, “Price” is the determining factor for choosing the product or service to be imported. In emergency cases, the “Deadline” acquires fundamental weight. And, in some cases, the “Quality” or the non-existence of a similar one, leave price and deadline for second plan.
So, the important thing is that the company is prepared to meet the 3 requirements (Price, Time and Quality), because then, no business will ever be lost.
Learning to Export – Competition
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