INTERNATIONAL BUSINESS DEVELOPMENT
Back in the “old days” it was possible to just send out a sales rep, attend a few trade shows and do well. Globalization changed all that, and by 2000 emerging markets had leveled the playing field with respect to product availability, price and quality.
Canada’s exporters adapted as thousands of companies offshored, established Foreign Affiliates and developed Global Value Chains (GVC) capable of competing in local markets.
Exports diverged into two streams: those with GVC who enjoy strong growth and are responsible for over 50% of Canada’s value added exports, and those who stayed home, and have watched as their share of exports declined since 1990.
The GVC model is even more compelling today, as competing effectively against international incumbents, many of whom are Foreign Affiliates of Canadian firms, demands first replicating their strong local presence, relationships, networks and developing a credible corporate presence: the product itself is secondary.
The message is clear that if you want to catch the fruit, you have to be under the tree. Growth and export success is best achieved by strategically selecting a target country / market, and opening a Foreign Affiliate.
Operating costs for Foreign Affiliate continue to fall, often to where operating a sales and customer service office is a fraction of the cost of maintaining a full time international sales representative, and attending trade shows.
XPM is frequently asked to develop affordable turn-key solutions that allows rapid, and effective market entry without straining corporate resources, whether establishing a Foreign Affiliate, JV, or network of agents and distributors. With over 25 years experience we can help take your idea to successful reality.