Position your business to thrive globally

In a recent article, "Manufacturers' Profits Outpace Broader Economy," The Wall Street Journal indicates that cost-cutting and a surge in exports are bolstering U.S. companies. Despite this, some manufacturers continue to struggle. Foreign competition, says The Wall Street Journal, remains fierce. So how do you position your business to not just survive – but thrive – during these difficult times?

Ask yourself: What is your global strategy? Your answer should reflect an analysis of the market potential, your company's capabilities, and the degree of marketing involvement and commitment your management team is prepared to make.

Here are five ways to find new or hidden markets in the world marketplace. Let these ideas inspire you to respond to the needs of your customers in new ways and fuel greater sales growth and profitability for your business.

1. Find and expand into new geographical markets for an
existing product.

This is the simplest and quickest strategy to grow your business. It requires minimal investment with both direct or indirect exporting, and modest planning of market development. Exporting is a common growth tactic for both mature international companies as well as smaller companies. This market entry strategy contributes to the revenue stream and profitability of an increasing number of enterprises.

To find new geographical markets, start with your government's information resources. In the U.S., try the Department of Commerce, The U.S. Commercial Service or the U.S. Small Business Administration.

Another excellent way to tap new geographical markets, to minimize your expenditure of time, money, and energy, and to help focus your overseas sales and marketing efforts is to use the Port Import/Export Reporting Service (PIERS). PIERS is the only information service that provides names of U.S. consignees or shippers as well as overseas suppliers, along with detailed descriptions of import or export shipments for the commodity of your choice. This information is taken from ships' manifests by a nationwide corps of reporters and is loaded weekly into a computer database.

For example, an American window blind manufacturer used PIERS to find customers who were importing window shades into Capetown, South Africa. They wanted to effectively compete with an industry giant already exporting to Capetown. After securing a list from PIERS that showed who was buying the competitor's goods there, the manufacturer created a direct mail package specifically for those customers. Using the PIERS list gave this company the competitive advantage they needed to show the South African prospects the superiority of their client's product to win them over as customers.

The lesson here is that you don't have to go it alone when going global. Tap into the resources available to you and the world can become your oyster.

2. Tap and penetrate emerging markets.

You cannot wait for big emerging markets (BEM) like India and China to grow up. The work should begin now to take advantage of opportunities presented by rapidly developing economies and to ensure that you are ready to reap the rewards when these markets explode. Here are several resources to help you:

• Read PriceWaterhouseCoopers' "The World in 2050: How big will the major emerging market economies get and how can the OECD compete?" to fully understand the growth potential of emerging economies.
• Go to the library or surf the Internet to see which global markets might be ideal as your first entry point.
• Visit the U.S. Commercial Service website to find export information by country and to learn as much as you can about a BEM. When you are ready to get started, contact a trade specialist for help. You can find this information on the left side bar panel under "Contact Us" or by searching a little further. Click on it and you will discover important websites relating to the country you wish to do business with as well as phone, fax, email and Commercial Officer information.

3. Source new products that complement existing ones and offer them as a new, specially priced package deal.

This should be a snap by surfing ThomasNet.com or ThomasGlobal.com, two of the most comprehensive resources for industrial supplier information, products, services, CAD drawings and more.

4. Develop new applications for existing products to offer to
new buyers.

Ask yourself, "What other applications is my product or service valid for?" Take piano wire as an example; it doesn't have to be used only in pianos and other musical instruments. It can also be used effectively in the fabrication of springs, fishing lures, special effects in the movie industry, and for cutting soap.

Think beyond the everyday uses of things as well as cultural constraints and you'll be amazed at the opportunities that arise.

If at all possible, here's where a few months of actually living in a foreign country really pays off. It enables you to learn firsthand how the locals do things and what they need to do them better.

5. Establish a strategic global alliance (SGA).

An SGA is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective. This strategy works well for market-entry or to shore up existing weaknesses and increase competitive strengths.

Here's one example:

When one U.S. company started exporting foodstuff, they contacted one of the largest Japanese trading companies in the world: Mitsui & Co., Ltd. They had a local office in Chicago and did a significant amount of exporting to Japan. This U.S. company approached Mitsui about piggybacking their products with Mitsui's. Since the U.S. company had the suppliers and Mitsui had the established distribution channels and customer base, it was a good match. By combining the U.S. company's gourmet food items with Mitsui's beef products, the U.S. company was able to provide extra value to customers throughout Japan. This example demonstrates the importance of SGA's in growing a business internationally – especially for SME's.

Global competition requires quality products that are designed to meet ever-changing customer needs and rapidly advancing technology. Develop your global strategy. Refine your international business practices. And discover every imaginable hidden market for your products and services. You will transform your business and take the lead in the world of expanding customer choices.

For more information on how ThomasNet and ThomasGlobal can help you further develop your business both domestically and globally, please call 1.866.621.9441 or visit www.ThomasNet.com/goodcustomers.

Global business expert Laurel Delaney is the founder of GlobeTrade.com and LaurelDelaney.com. She can be reached at ldelaney@globetrade.com.