[ The International SME
Export Toolkit - Checklist 2

CHECKLIST 1

CHECKLIST 2

CHECKLIST 3

Meet the

Europartnerships Team!

The external audit helps you to analyse the market, consider product issues and come to an informed decision about routes to market, logistics and transport.

External issues for international expansion

Which market?
Background considerations

To what extent is geographical proximity an issue for your company?
To what degree could a country’s political stability or a government’s overall political stance affect your products and markets?
How significant is the financial profile of a country e.g. inflation levels, boom vs recession, level of indebtedness, banking and taxation systems and currency exchange level?
Do industrial licensing requirements and non-tariff barriers need to be considered?
Have you taken into account the considerable differences between legal systems based on codified law (e.g. France, Germany) and those based on common law and precedence (e.g. UK)?
Have you considered the prevailing values and attitudes and how such things as religion, social taboos, fashions and local/regional tastes could affect the attractiveness of a particular market?

What is the business culture, management style and practice?
Will levels of educational and technological advancement need to be considered?
What is the significance of the quality of local infrastructure such as existing air, road and rail networks, degrees of urbanisation and consumer affluence, efficiency of distribution and communications/media channels?
What linguistic and cultural barriers are you likely to encounter and how might these impact on your market communication strategy?
What do you know of the market’s size, structure and target sectors?

Who are your potential customers, how many are there and where are they located?
Who are your competitors and what do you know about the level of competition, number of competitors, extent of price competition and intensity of rivalry?
If your competitors are not there, what are the reasons?
What are your competitive advantages in that market?
Is your pricing appropriate (taking into account cost of transport, bank charges, etc.) and how does it compare with the local competition?
What are the most appropriate payment methods and is credit insurance advisable?
What other primary/secondary information do you need to allow you to select your target market(s)?

Product considerations

What are your product’s unique qualities, strengths and weaknesses and how are these perceived in different markets?
To what degree are they suitable for the target market(s) and what adaptations will be required if any?
Is there already an established market for this or similar products in the form that you can supply them?
To what extent does the shelf life, if you have perishable products, affect your export potential?
Are you aware of any technical reasons why your product(s) may not be suitable now or in the future? Could local certification be advisable to meet required standards?
What do you know of the legal and regulatory framework (e.g. product safety, product liability, consumer protection, quality control, patents, copyright and contract law, environmental protection, workplace safety and employment conditions)?
What import restrictions exist, if any?
What scope is there to enter into collaborative arrangements to develop products?
Is the brand name/trade mark appropriate and acceptable? Will it need to be registered?
What investments (time/money) would be required to effectively manage your brands?
Is the image of the country of origin a positive or negative factor in your product range?
Is there any new legislation pending that may affect you e.g. liberalisation of telecoms, privatisation of public utilities?

Routes to market/distribution channels

What are the options for selling and distributing your products(s) in the target market(s): e.g. direct sales to end user, agent, distributor/wholesaler, export/buying house, acquisition, joint venture, retailer, subsidiary, licensing and franchising?
Does the route chosen match your requirements?
Have you consulted potential customers about the various options?
If you need to sell with the help of intermediaries and business partners in the market, how will you find suitable candidates?
Have you considered the option of establishing alliances with third country partners already operating in the market you want to enter?
How do you reach your customers most effectively e.g. trade fairs, advertising, direct mail, press releases, internet?
Could you supply the market as a sub-contractor?
How are purchasing decisions influenced and what are the prevailing procedures, terms and practices?
How effective are you at promoting your products/services?
What sales literature and special promotional material will be needed – and in what language?
Have you taken into account that most partnerships evolve over time?
Are you willing to make the additional commitment?
Will local staff have to be trained and if so, how?
Whatever your chosen route to market, will you be able to exercise sufficient control?

Logistics/transport

What are the established channels of distribution in your target market(s)
What distribution arrangements (e.g. one-stop shop) will best achieve the level of customer service you are seeking?
What will be the impact of the cost of transport on the feasibility to export?
What available options for method of transport have you considered, bearing in mind cost, speed, reliability, frequency of delivery, size of loads and other requirements?
What are the advantages/disadvantages of using a freight forwarder compared with doing it yourself?
What are the packaging/labelling requirements?
What special documentation is required?
What level of after sales service/technical support will be required and how will this be provided?
What warehousing facilities will be required for your products and/or spare parts?

Action planning and reviewing

WHAT key actions have you planned? The Action Plan should be as concrete as possible
WHEN should each action take place? Timescale should be specified
WHO is responsible for each action? A name should be against each action
HOW will the Action Plan be reviewed? The process should be specified by monthly meeting
WHEN are the key dates for the review process? The milestones should be drawn up in advance
WHO is responsible for carrying out reviews? One person should take overall responsibility for ensuring that the Action Plan is completed