• Title/Summary/Keyword: Export Strategy

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Changes in Export Gateways and the Spatial Patterns of Korean Agri-Food Exports: A Classification and Regression Tree Analysis Approach (수출 관문의 변화와 한국 농식품 수출의 공간적 패턴 분석: 의사결정나무 분석의 적용)

  • Hyun, Kisoon
    • Journal of the Economic Geographical Society of Korea
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    • v.21 no.2
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    • pp.90-106
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    • 2018
  • This study suggests a gateway strategy for transporting agri-food exports to expand exports after examining the patterns of Korean agri-food exports by commodities and the role of export gateways. Korean agri-food exports have increased, but processed food exports have increased significantly compared to fresh agricultural products during the last 17 years. More importantly, Busan port is the main agri-food export hub in Korea. Under these circumstances, this paper examines the determinants of processed cereal-based food (HS 19) exports through Busan port using classification and regression tree (CART) analysis. As a result, the main factors that help to predict the real value of Korean exports are the GDP of the export destination countries, their distances from Korea and their GNI per capita. The destinations of Korean agri-food exports are finally classified into eight groups, which reveals the characteristics of clusters and provides useful insights for the strategies to expand agri-food exports.

Design of Sales Strategy according to 4P Characteristics (4P 특성치를 고려한 판매전략 설계에 관한 연구)

  • Kim, Chang-Shik
    • Journal of the Korea Safety Management & Science
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    • v.10 no.4
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    • pp.259-265
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    • 2008
  • Domestic industry has a long history, but it has been suffering for a long time due to its poor competitiveness in management ability, supply of materials, technological development, sales marketing, and distribution networks. Moreover, the industry has not established its strong presence in the world market but is exposed to increasingly greater agonies because of inactive domestic demands, increase rate of import versus export, diversified government policies, and non-selective introduction of high-quality and low-priced foreign named brands of ceramics into the country. Theses factors have partly contributed to consumers' low or negative recognition.

International Success the Second Time Around: A Case Study (제이륜국제성공(第二轮国际成功): 일개안례연구(一个案例研究))

  • Colley, Mary Catherine;Gatlin, Brandie
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.173-178
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    • 2010
  • A privately held, third generation family owned company, Boom Technologies, Inc. (BTI), a provider of products and services to the electric utility, telecommunications and contractor markets, continues to make progress in exporting. Although export sales only equaled 5% of total revenue in 2008, BTI has an entire export division. Their export division's Managing Director reveals the trial and errors of a privately held company and their quest for success overseas. From its inception, BTI has always believed its greatest asset is its employees. When export sales struggled due to lack of strategy and direction, BTI hired a Managing Director for its export division. With leadership and guidance from BTI's president and from the Managing Director, they utilized the department's skills and knowledge. Structural changes were made to expand their market presence abroad and increase export sales. As a result, export sales increased four-fold, area managers in new countries were added and distribution networks were successfully cultivated. At times, revenue generation was difficult to determine due to the structure of the company. Therefore, in 1996, the export division was restructured as a limited liability company. This allowed the company to improve the tracking of revenue and expenses. Originally, 80% of BTI's export sales came from two countries; therefore, the initial approach to selling overseas was not reaching their anticipated goals of expanding their foreign market presence. However, changes were made and now the company manages the details of selling to over 80 countries. There were three major export expansion challenges noted by the Managing Director: 1. Product and Shipping - The major obstacle for BTI was product assembly. Originally, the majority of the product was assembled in the United States, which increased shipping and packaging costs. With so many parts specified in the order, many times the order would arrive with parts missing. The missing parts could equate to tens of thousands of dollars. Shipping these missing parts separately in another shipment also cost tens of thousands of dollar, plus a delivery delay time of six to eight weeks; all of which came out of the BTI's pockets. 2. Product Adaptation - Safety and product standards varied widely for each of the 80 countries to which BTI exported. Weights, special licenses, product specification requirements, measurement systems, and truck stability can all differ from country to country and can serve as a type of barrier to entry, making it difficult to adapt products accordingly. Technical and safety standards are barriers that serve as a type of protection for the local industry and can stand in the way of successfully pursuing foreign markets. 3. Marketing Challenges - The importance of distribution creates many challenges for BTI as they attempt to determine how each country prefers to operate with regard to their distribution systems. Some countries have competition from a small competitor that only produces one competing product; whereas BTI manufactures over 100 products. Marketing material is another concern for BTI as they attempt to push marketing costs to the distributors. Adapting the marketing material can be costly in terms of translation and cultural differences. In addition, the size of paper in the United States differs from those in some countries, causing many problems when attempting to copy the same layout and With distribution being one of several challenges for BTI, the company claims their distribution network is one of their competitive advantages, as the location and names of their distributors are not revealed. In addition, BTI rotates two offerings yearly: training to their distributors one year and then the next is a distributor's meeting. With a focus on product and shipping, product adaptation, and marketing challenges, the intricacies of selling overseas takes time and patience. Another competitive advantage noted is BTI's cradle to grave strategy, where they follow the product from sale to its final resting place, whether the truck is leased or purchased new or used. They also offer service and maintenance plans with a detailed cost analysis provided to the company prior to purchasing or leasing the product. Expanding abroad will always create challenges for a company. As the Managing Director stated, "If you don't have patience (in the export business), you better do something else." Knowing how to adapt quickly provides BTI with the skills necessary to adjust to the changing needs of each country and its own unique challenges, allowing them to remain competitive.

A Study on the Strategy for Enhancing the Service Export linked with Manufacturing Sector : focused on Stage System and Special Lighting Service (제조-서비스 연계형 수출상품화 모델 개발전략 - 무대장치 및 특수조명서비스 수출산업을 중심으로 -)

  • Park, Moon-Suh
    • International Commerce and Information Review
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    • v.10 no.4
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    • pp.457-491
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    • 2008
  • As stage equipment export markets along with special lighting service lack the attraction for already globally established businesses, such markets can be viewed as an advantageous opportunity for SMEs as in general. In reality, global businesses tend to focus on large construction projects and this indicates relatively less substantial markets such as stage equipment and special lighting service export are more suitable for SME businesses. However, possible problems may be recognized as following; doubtful capabilities by such businesses to join in the vast and competitive global market and pursue manufacturing and service based export. This point is also supported by the fact that such in general SME businesses have substantially less experience in exporting products and services abroad. Realizing the distinctive features of the Korean economy, it is unarguable that every sector and area of global market must be regarded and monitored closely. Hence, it can be argued that there is an imminent need for establishment of supportive institution to assist export process of combination of stage equipments and special lighting service. This study emphasizes the need to improve export process of stage equipments, special lighting services as well as other related products and services which have been focused in domestic market only until now. Further, it also analyzed the potential prospect of such direction reconciling current crisis our manufacturing industry is facing. Even though it maybe regarded as one of the niche market for export of Korea in the short term view, stage equipment and special lighting service industry may rapidly grow as the global cultural industries have grown along with the increase of national income earnings overall. Due to such advantageous features, it can be expected that such industries will show strong growth in the near future. After analyzing the fact that Korea's plants (eg. powerplants) export sector is at its boom, there is a need to transform stage equipment and special lighting service export market into a primary market from a secondary(niche) market for SMEs. This study is viewed from the Korean economic and export sector aspect in the aim of seeking a solution to conquest our realistic limit in our export sector by developing a suitable export model. There have been cases of very few attempts to expand abroad by SMEs who have failed miserably due to their failure to adapt to foreign culture, practice and languages as well as substantial lack in experience in export marketing. Despite this, neglecting our manufacturing industry as it is which is showing its limit and problems is out of option therefore, it is imminent that we come up with an effective measure to address this problem and service export can be suggested as one of them. This study reveals manufacturing-service export model of stage equipment and special lighting service and its related areas is recognized as a field with a very strong future and furthermore, it is expected to bring synergy effects in manufacturing and services sector as well. Further, the operation strategy contains combination, composition and fusion(convergence) of manufacturing and service sectors which could derive various of export products which displays greater success probability or this export model. The outcome of this research is expected to become a useful source for enterprises related to such industry which are seeking a possible global expansion. Furthermore, it is also expected to become a catalyst which fastens the process of global expansion and not only that, we are firmly assured that this study will become an opportunity to improve our current policies and institutions related to this area's export market.

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A study on a plan to increase produce and agricultural foods export (농산물 및 농식품 수출 확대를 위한 방안 연구)

  • Kang, Chang-Won
    • Journal of Distribution Science
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    • v.7 no.4
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    • pp.27-36
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    • 2009
  • In the performance of this research we aimed at surveying·studying the trouble factors, problems and improvement plans to extend agricultural products and agro-food and providing basic data for the globalization of Korean agricultural products and agricultural foods in future. All the respondents highly recognized, in general, the problems in exporting agricultural products and agro-food, and it was surveyed that the biggest reason lay in the insufficiency of the scout for new buyers and the lack in opening overseas market and marketing specialists. As for the problems of the supporting system of the export of agricultural products, it was pointed out that the level of recognition was fairly high, but the procedures were difficult, and they indicated the problems of non-benefits in spite of the recognition of the selection. For the purpose, it could be known that it required the publicity and education as to export supporting system, and also required the extension of export supporting system and the improvement of the system. Finally, in relation with the export promotion plan, the factors blocking the export promotion of agricultural products marked the highest in the weak management size and production foundation and the lack in export mind and special workforce. Therefore, considering that most of exporters of agricultural products are small/medium sized businesses, we foresaw that we lack in the opening of overseas market and the capacity of marketing activities, and analyzed that it was necessary to open an overseas market in the dimension of the government and cooperate with the marketing to solve the problems.

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The Effects of Technological Capability and Domestic Marketing Capability on Export Market Orientation, and Moderating Effect of Market Turbulence: Evidence from SMEs in Gwangju and Jeonnam Province (기술역량과 국내 마케팅역량이 수출지향성에 미치는 영향과 시장변동성의 조절효과: 광주·전남지역 중소기업에 대한 실증분석을 중심으로)

  • Lee, Jae-Eun;Kang, Ji-Won;Choi, Seo-Hyung;Choe, Soon-Kyoo
    • Korea Trade Review
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    • v.42 no.4
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    • pp.21-47
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    • 2017
  • This study examines the effects of technological capability and domestic marketing capability of SMEs on the export market orientation, focusing on the moderating effect of market turbulence. This empirical analysis, based on surveys collected from 206 small and medium-sized firms located in Gwangju and Jeonnam provinces, yielded the following conclusions. First, technological capability of SMEs has a positive impact on export market orientation. This result not only is consistent with preceding studies but also suggests that when technological capability of SMEs is utilized as their own unique asset to reduce liability of smallness or liability of foreignness, the tendency to export might be increased. Second, domestic marketing capability of SMEs has a positive impact on export market orientation. This result suggests that as the domestic marketing capability of SMEs is used as prior knowledge reducing uncertainty to enter the overseas markets, the tendency to export might be increased. Third, as a result of examining moderating effect of market turbulence, it shows that market turbulence moderates the relationship between domestic marketing capability and export market orientation toward a negative(-) direction. That is, since market turbulence might weaken the relationship between domestic marketing capability and export market orientation, SMEs which belong to the industry considering marketing capability important need to develop strategy with consideration for market turbulence. This study provides theoretical and practical implications in that it reveals factors positively affecting export market orientation and market turbulence can be utilized as a moderator.

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An Investigation to Outlook the Effect of FTA on Motor Car Export to Latin America and the Appropriate Action Plan - By Looking at Statistics and Factors that Influenced Export of Motor Cars to Chile - (FTA 체결에 의한 중남미 자동차 수출 전망과 대응 방안 연구 -대(對) 칠레 자동차 수출 성과 및 영향요인 변화 분석을 중심으로-)

  • Choi, Ki-Young
    • International Commerce and Information Review
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    • v.14 no.3
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    • pp.139-158
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    • 2012
  • FTA is one of the most important trade policies for the motor car industry. Due to the large amount of employment and production the motor car industry provides in a country, in a lot of cases, the protective trade policies that countries employ are targeted for the motor car industry. In this point of view, it can be said that the Latin American FTA strategy such as the 'Korea-Columbia FTA', 'Korea-Peru FTA' and 'Korea-Chile FTA' has a large influence in the development of Korea's car industry. This paper analyses changes in factors influencing car export before and after the signing of the Korea-Chile FTA to forecast the export of motor cars to Latin America and aims to propose an action plan. Research shows that out of the variables 'exchange rate', 'GDP', and 'oil price, 'GDP' showed a strong corelation with export before and after the FTA. Regression analysis also showed that only 'GDP' has an impact on export rates and that its impact is most highest after the exhibition of FTA's effects. This suggests that FTA has an important effect in motor car export to Latin America but export is also strongly interlocked with the local country's economic condition which highlights the requirement for an action plan such as the establishment of local production systems.

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A Study on the Born Global Venture Corporation's Characteristics and Performance ('본글로벌(born global)전략'을 추구하는 벤처기업의 특성과 성과에 관한 연구)

  • Kim, Hyung-Jun;Jung, Duk-Hwa
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.3
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    • pp.39-59
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    • 2007
  • The international involvement of a firm has been described as a gradual development process "a process in which the enterprise gradually increases its international involvement in many studies. This process evolves in the interplay between the development of knowledge about foreign markets and operations on one hand and increasing commitment of resources to foreign markets on the other." On the basis of Uppsala internationalization model, many studies strengthen strong theoretical and empirical support. According to the predictions of the classic stages theory, the internationalization process of firms have been recognized and characterized gradual evolution to foreign markets, so called stage theory: indirect & direct export, strategic alliance and foreign direct investment. However, termed "international new ventures" (McDougall, Shane, and Oviatt 1994), "born globals" (Knight 1997; Knight and Cavusgil 1996; Madsen and Servais 1997), "instant internationals" (Preece, Miles, and Baetz 1999), or "global startups" (Oviatt and McDougall 1994) have been used and come into spotlight in internationalization study of technology intensity venture companies. Recent researches focused on venture company have suggested the phenomenons of 'born global' firms as a contradiction to the stages theory. Especially the article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Since venture companies have, by definition. lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking, they have a difficulty in expanding their market to abroad and pursue internalization gradually and step by step. However many venture companies have pursued 'Born Global Strategy', which is different from process strategy, because corporate's environment has been rapidly changing to globalization. The existing studies investigate that (1) why the ventures enter into overseas market in those early stage, even in infancy, (2) what make the different international strategy among ventures and the born global strategy is better to the infant ventures. However, as for venture's performance(growth and profitability), the existing results do not correspond each other. They also, don't include marketing strategy (differentiation, low price, market breadth and market pioneer) that is important factors in studying of BGV's performance. In this paper I aim to delineate the appearance of international new ventures and the phenomenons of venture companies' internationalization strategy. In order to verify research problems, I develop a resource-based model and marketing strategies for analyzing the effects of the born global venture firms. In this paper, I suggested 3 research problems. First, do the korean venture companies take some advantages in the aspects of corporate's performances (growth, profitability and overall market performances) when they pursue internationalization from inception? Second, do the korean BGV have firm specific assets (foreign experiences, foreign orientation, organizational absorptive capacity)? Third, What are the marketing strategies of korean BGV and is it different from others? Under these problems, I test then (1) whether the BGV that a firm started its internationalization activity almost from inception, has more intangible resources(foreign experience of corporate members, foreign orientation, technological competences and absorptive capacity) than any other venture firms(Non_BGV) and (2) also whether the BGV's marketing strategies-differentiation, low price, market diversification and preemption strategy are different from Non_BGV. Above all, the main purpose of this research is that results achieved by BGV are indeed better than those obtained by Non_BGV firms with respect to firm's growth rate and efficiency. To do this research, I surveyed venture companies located in Seoul and Deajeon in Korea during November to December, 2005. I gather the data from 200 venture companies and then selected 84 samples, which have been founded during 1999${\sim}$2000. To compare BGV's characteristics with those of Non_BGV, I also had to classify BGV by export intensity over 50% among five or six aged venture firms. Many other researches tried to classify BGV and Non_BGV, but there were various criterion as many as researchers studied on this topic. Some of them use time gap, which is time difference of establishment and it's first internationalization experience and others use export intensity, ration of export sales amount divided by total sales amount. Although using a mixed criterion of prior research in my case, I do think this kinds of criterion is subjective and arbitrary rather than objective, so I do mention my research has some critical limitation in the classification of BGV and Non_BGV. The first purpose of research is the test of difference of performance between BGV and Non_BGV. As a result of t-test, the research show that there are statistically efficient difference not only in the growth rate (sales growth rate compared to competitors and 3 years averaged sales growth rate) but also in general market performance of BGV. But in case of profitability performance, the hypothesis that is BGV is more profit (return on investment(ROI) compared to competitors and 3 years averaged ROI) than Non-BGV was not supported. From these results, this paper concludes that BGV grows rapidly and gets a high market performance (in aspect of market share and customer loyalty) but there is no profitability difference between BGV and Non_BGV. The second result is that BGV have more absorptive capacity especially, knowledge competence, and entrepreneur's international experience than Non_BGV. And this paper also found BGV search for product differentiation, exemption strategy and market diversification strategy while Non_BGV search for low price strategy. These results have never been dealt with other existing studies. This research has some limitations. First limitation is concerned about the definition of BGV, as I mentioned above. Conceptually speaking, BGV is defined as company pursue internationalization from inception, but in empirical study, it's very difficult to classify between BGV and Non_BGV. I tried to classify on the basis of time difference and export intensity, this criterions are so subjective and arbitrary that the results are not robust if the criterion were changed. Second limitation is concerned about sample used in this research. I surveyed venture companies just located in Seoul and Daejeon and also use only 84 samples which more or less provoke sample bias problem and generalization of results. I think the more following studies that focus on ventures located in other region, the better to verify the results of this paper.

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Fostering direction of the Ornamental Fish Industry in Korea through a competitive analysis of International Ornamental Fish Industry (세계 관상어산업의 경쟁력 분석을 통한 우리나라 관상어산업의 육성 방향)

  • Kim, Dae-Young
    • The Journal of Fisheries Business Administration
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    • v.46 no.1
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    • pp.15-28
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    • 2015
  • This research examined a task to foster into the export industry, through analyzing the competitiveness of the ornamental fish industry and identifying the position of Korea's ornamental industry in the world. Ornamental fish in Korea holds the world's leading aquaculture technology, but products are limited to a few species, lacking competitive products. In the case of aquarium supplies, the Korean technology level is receiving relatively positive marks in the global market, but ornamental fish products are lagging behind the global trend. In other words, Korea's ornamental fish industry has the overall technical foundation, but lacks differentiation in the global market. Meanwhile, Korea's market share of world trade market in fishery products is minimal. Growth was also analyzed not high compared to other countries. Various trade competitiveness index results rated very low in competitiveness, but it is hard to compare Korea with other countries which have already built a strong foundation in the ornamental fish industry. Therefore, for the mid to long term Korea should adapt a "Choice and concentration" strategy and focus on the production of ornamental fish and aquarium supplies, which will enable Korea to become differentiated in the global market and capture the world exports.