The Export Advantage
According to Howard Lewis III and J. David Richardson’s report Why Global Commitment Really Matters, exporting companies grow faster and are more likely to succeed than companies that stay at home. They provide better jobs and greater advancement opportunities for their workforce and leave their communities better off. Regardless of timeframe or export volume, exporters see faster annual growth and are less likely to go out of business.
Faster Sales Growth
95% of the world’s consumers and nearly 80% of its purchasing power are found outside the borders of the United States — and the trend is upwards. The OECD predicts a global middle class numbering 4.9 billion by 2030. If your company sells only on the domestic market, you’re turning your back on much of your business potential.
Exporting enables businesses to diversify revenue streams and reduce dependence on existing markets. It can smooth the effects of business cycles, seasonal fluctuations and price wars, allowing companies to hang on to valuable human resources when times are tough. Anecdotal evidence even suggests that foreign customers are more loyal!
Tapping export markets can create new opportunities for firms to fully utilize their production capacity, technology and know-how. And it can extend the sales life cycle of products.
The experience of competing on international markets makes you a stronger competitor at home. You’ll gain information about current and potential foreign competitors, and the insights you glean from diverse customer expectations abroad will prepare you to respond as domestic preferences evolve. Playing on a global field also gives you access to tax advantages, financing options, marketing opportunities and talent pools that simply aren’t available to purely domestic businesses.