Beyond Data: Strategically Selecting Your Export Target Markets

By: Masoud Hafezi

"Free training through serial articles"

Understanding the problem

Many companies have been observed offering training courses on selecting export target markets, following the lead of the International Trade Center (ITC). While it's commendable that ITC has enabled trainers across countries, and that these trainers are effectively teaching the use of tools like TradeMap, there is a significant gap between the data provided and the actual information needed for market selection strategies.

TradeMap provides an abundance of trade data to users but lacks the crucial analysis and guidance to convert this data into actionable strategies for entry into specific markets. Trainers offering these courses must go beyond teaching the tools and data interpretation, to also impart analytical skills.

For instance, the chart below depicting the polymer processing aids market landscape in Pakistan from a competitive advantage analysis perspective, will not be found on TradeMap. You would need to construct it yourself from the available data to understand your competitive positioning for this product in Pakistan.

This chart reveals a fragmented market, with a low potential for gaining competitive advantages, yet some opportunities exist to carve out an advantageous position.

To determine entry strategies into export markets, you must be familiar with different market types like fragmented, specialized, stalemate, and volume-based markets. Follow Solutia International Business Group and you will receive free training articles and such analyses.

Ask us at Solutia about the potential sources of competitive advantage as an exporter and the necessary actions to capitalize on them. We will elaborate on these in subsequent articles. Stay tuned and best of luck!

If you wish to learn more about such analytical approaches, you can request an online customized training course.

Understanding potential sources of competitive advantage

We briefly touched upon converting ITC data into actionable information. One such aspect is identifying potential sources of competitive advantage. Traditionally, in classic product-driven markets, competitive advantages tend to be limited to a few key areas:

1. Cost: The ability to offer your product to consumers at the lowest possible cost. For instance, a polymer compound exporter pricing just $1 lower per ton than competitors could potentially capture the entire market share.

2. Differentiation: Gaining advantage through significant differentiation in quality, after-sales service, or unique product features. However, differentiation may not be effective in all markets - this strategy works best in specialized or scale-driven markets. Consider a hemodialysis equipment exporter focusing not on direct product exports but rather on establishing hemodialysis treatment centers in target markets.

3. Niche Specialization: Tailoring products for a specific consumer segment. For example, producing lactose-free infant formula for babies unable to digest lactose.

Using ITC data, we must construct charts and analyses to assess the potential competitive advantages for our products in each target market and determine which levers we can utilize to attain those advantages.

In upcoming articles, we will explain these potential competitive advantage levers in detail, along with the necessary actions exporters must take to capitalize on them. Stay tuned by following us.

If you wish to expedite learning these analytical approaches, you can request a customized training course or define your export project using a "30-minute Consulting Service for Free" link at the bottom of our LinkedIn page.

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