Understand Which Your Export Strategy?

Before starting your new export business, you should be familiar with Export Strategy Diagram to identify which strategy you will follow. This diagram excerpt from ITC publications and I will share you the illustration.  

As shown, the diagram is divided into 4-sections, each section from an export strategy resulting from intersection of two elements of export entities:

Also, if we look at the export elements, we can find each product and market elements classified into Existing and New Product and Market respectively.

Existing product means you have already a product exported to a specific market but new product means you have a new product doesn’t exported before. Existing market means you have a market that already you export your product but new market means you have a target market that you didn’t export any product to it before.

Then, from the diagram we can define the 4-export strategies:

Exporting of existing product to existing market will form a strategy called Product and market Penetration which aims to increase your product export share to that market.

Exporting of existing product to a new market will form a strategy of Market Diversification whereas exporting of new product to an existing market will form a Product Diversification strategy.

Exporting a new product to a new market will get a strategy of Product and market Diversification.

So, any exporter cannot plan his/her export enterprise from outside the boundaries of the above diagram.