Page 3: Why do UK companies export?
A presence in overseas markets will help business organisations to achieve:
- increased growth leading to the benefits of economies of scale -
- larger production runs reduce costs
- a competitive edge - exposure to intensive competition, new products and ideas, more efficient technologies and better working practices
- higher earnings where margins in some markets exceed those in the domestic one
- the ability to spread risks – while sales in the home market may be in decline those in overseas markets may be booming.
The size of the business does not matter, nor does the product sector. What is important is:
- the product meets local demands
- regular training of overseas sales teams
- developing long-term relationships
- establishing new markets to compensate for less buoyant ones
- good marketing and customer service
- having a quality product strong enough to compete within overseas markets.