When establishing a successful export strategy, there is a need for management to consider a number of steps. The major six stages include: undertaking a research study, developing a powerful plan, identifying the right exportation channel, locating opportunities and legal considerations, analysis of transport needs, and execution. The first stage focuses on a detailed study to understand the consumption rate, needs, and expectations of different markets (Daniels, Radebaugh, & Sullivan, 2015). Issues such as demographics, cultural attributes, and competition are monitored during this stage. Leaders use this study to make the right choice for exporting the targeted materials or goods. The second stage is the development of an effective plan to achieve the targeted goals. The plan should be managed by competent persons. The company’s capacity to export its services/products is analyzed during this stage. The next one is coming up with the right channel for exportation. The selected choice should be informed by the targeted goals and existing business model. The purpose of this stage is to ensure that the export strategy supports the company’s mission and vision.
The fourth stage is the identification of existing opportunities in the targeted foreign country. This stage is undertaken in order to understand the major aspects that can promote business performance. Different platforms such as social media networks can be considered in order to understand how performance or profitability can be maximized. Trade fairs and expositions can also be identified to ensure that more people in a foreign country are aware of the company’s export intentions. Additionally, this stage will reveal the major legal issues that should be considered throughout the implementation process (Daniels et al., 2015).
For example, subsidies, taxes, and employment laws in the targeted country will be used to inform the best strategy. The next stage that is considered to develop an appropriate export strategy is analyzing the company’s transport needs. Dubrovski (2016) asserts that a powerful logistical strategy will be needed for a company that intends to export its products. The model should focus on every issue existing in the targeted destination country. Costs, expenses, and transport networks will be considered in an attempt to develop an effective export strategy. The final stage is called execution. This phase is critical because it guides managers to take into consideration every concern raised throughout the process. Different individuals will be involved to launch the strategy successfully. This stage, therefore, ensures that the proposed strategy becomes a reality and eventually supports the company’s business goals.
Globalization is a powerful wave that has transformed the way different companies pursue their goals. For instance, corporations can decide to join or merge temporarily in an attempt to pursue a specific task or project. This kind of model is called “joint venture” (Dubrovski, 2016). Russo and Cesarani (2017) define “non-equity joint ventures” as agreements between corporations to acquire technical services or rental agreements. More often than not, such ventures make it easier for involved companies to gain access to new or foreign markets.
Ford Motor Company’s decision to engage in a non-equity joint venture can present numerous benefits. To begin with, the approach or agreement can make it easier for the corporation to gain access to different foreign markets (Russo & Cesarani, 2017). This means that the company will be in a position to maximize or expand its distribution networks. The strategy will also increase the company’s capacity and make it more competitive.
A non-equity joint venture will make it easier for Ford to share risks with its business partner. This means that the targeted project or activity will be pursued efficiently and eventually improve business performance. Daniels et al. (2015) acknowledge that any form of joint venture will empower companies to share resources and improve performance. Ford Motor Company will be able to access advanced technologies from its partner, form powerful teams, and increase its financial capability.
Several risks might also arise if the company engages in a non-equity joint venture. To begin with, the objectives of such agreements are not communicated to different stakeholders. This gap can affect the effectiveness and success of the intended project. During the period, each company will focus on its business aims (Russo & Cesarani, 2017). This means that any negative outcome can affect the performance of the company. The existence of legal challenges can result in various complications and affect the corporation’s performance or profitability.
Ford can also partner with a company that lacks adequate resources or expertise to support its new goals. This means that the company will incur numerous expenses in order to achieve its potential. During the initial phases of the partnership, the level of leadership can be affected, thereby undermining the effectiveness or success of the non-equity joint venture (Daniels et al., 2015). Managerial challenges might also arise during the first stages of the non-equity joint venture. This analysis, therefore, explains why the company should be prepared for these challenges and risks in order to achieve its potential.
References
Daniels, J., Radebaugh, L., & Sullivan, D. (2015). International business: Environments & operations (15th ed.). Upper Saddle River, NJ: Pearson.
Dubrovski, D. (2016). Strategic partnership and equity alliances in the function of crisis prevention and elimination. Modern Economy, 7, 1385-1395. Web.
Russo, M., & Cesarani, M. (2017). Strategic alliance success factors: A literature review on alliance lifecycle. International Journal of Business Administration, 8(3), 1-9. Web.