Export audit

The development of an export plan, export strategy, marketing plan or marketing strategy is based on a thorough diagnosis of your company. This diagnosis aims to :

• determine the export potential of your company's products

Your company's export plan and strategy should include an analysis of the export potential of your products. There are several ways to assess the export potential of your products on international markets. The most common approach is to look at domestic sales of your products. If your company is successful on the domestic market, there is a good chance that it will also sell on foreign markets, at least on markets where similar needs and conditions exist.

Another way for you to assess your company's export potential is to look at the unique or important features of your products. If these features are difficult to reproduce abroad, it is likely that your product will be successful abroad. A unique (differentiated) product may have little competition and demand for it may be very high. However, even if your product is not unique, there is no need to be discouraged. Many products have competitors in the foreign markets you are targeting. In fact, all companies have a number of ways of competing in international markets, including the way the product is positioned in a specific market, brand advantage, help from export promotion agencies and similar organisations, excellent customer service or some other competitive advantage that has little to do with what is sold but how it is sold, free trade agreements or exchange rate fluctuations that make competitors' products more expensive.

Finally, your product may have export potential even if your sales are falling on the domestic market. Significant export markets may still exist, especially if your product once did well domestically, but is now losing market share to more technologically advanced products.

Other countries (sub-Saharan African countries in general) may not need cutting-edge technology and may not be able to afford more sophisticated and more expensive products. It is a good idea to assess the export potential of your product using the tool available for this purpose on the International Trade Centre website, at the following address https://exportpotential.intracen.org/en/ .

• assess your company's export capacity

Export-ready companies possess certain qualities that increase the likelihood that their export efforts will be successful. By answering the following important questions about how exporting will enhance your company's objectives, you can determine whether your company is export-ready. For example, these questions might include what you want to gain from exporting; whether your company's other objectives are compatible with exporting; what demands exporting will place on your company's key resources, management and staff, production capacity and finance, and how these demands will be met; whether the expected benefits are worth the costs, or whether your company's resources would be better used developing international trade; whether your company's resources would be better used developing new domestic activities.

For a more in-depth assessment of your company's export capability, it is a good idea to carry out an assessment of your company's export readiness by referring to your internal statistical data.

For a more theoretical assessment, it is useful for you to look at the motivational and organisational factors (mentioned above) that underpin your decision to export. By reflecting on these factors, you can decide whether your company and your product are ready for export.

To determine whether your product is ready for export, you need to consider the following additional factors:

• selling points: if your product is a success at national level, the next step is to identify why it sells or why it has sold so well on the national market, bearing in mind that conditions abroad may be slightly to significantly different (socially, culturally, economically, politically and in terms of its environment);

• modifications: you can sell your product without modification on international markets, provided that it complies with the standards and regulations set by the respective countries. Some countries have strict government regulations requiring special tests, safety, quality and technical compliance measures. Depending on the product and the market, you may have to modify colours, sizes and packaging to adapt your product to local conditions and consumer preferences;

• product licences: some product classifications require special approval from the country's trade ministries before they can be exported, and some of these products require export licences (e.g. Special Export Authorisation or SEA).

• The training required: products that require training to operate impose a greater responsibility on you and your distributor or agent, and you need to decide how this training is to be handled.

• After-sales service: products that require extensive after-sales service should be handled by a distributor or agent who has a good knowledge of the market and is well placed to provide this service. You should provide the means to return the product for repair and replacement, making this an option.

• Product distinctiveness: products with unique characteristics have a competitive advantage and are more attractive to consumers reception in foreign markets. Although few in number in Africa in general and French-speaking Africa in particular, these unique characteristics include patents, superior quality, cutting-edge technology and adaptability.

For a more complete list of the factors and issues you need to consider, you can enlist the help of stratExim Consulting, your international trade specialist. Our services help you export strategically, rather than responding to an occasional order from an international buyer.

Another important element to consider when carrying out an export diagnosis is the use of e-commerce, which is a growing trend in Africa: you could make a very good deal by selling internationally via your own website or a third-party e-commerce site

Once carried out effectively, the export diagnosis leads to the development of your export plan, your export strategy, your marketing plan and your marketing strategy.

Depending on the diagnosis, you can reach three conclusions:

• your company's weaknesses are too great and insurmountable. You should avoid exporting;

• your company has a few weaknesses, but these are surmountable. All you have to do is implement appropriate solutions to remedy the weaknesses;

• your company has no major weaknesses that prevent it from exporting. Exporting is possible in the short term.

StratExim Consulting can help you carry out this audit. Contact: eximsolutions@strateximconsulting.com