Business, Thought, and Management Articles --- Advice of Export --- Production Volume Expansion for Export
There are a variety of attractiveness and benefits in export businesses. Benefits that can be expected in the first by export is the expansion of production volume. It enables to improve product competitiveness, to the purchase cost by expanding the production.
There are a variety of attractiveness and benefits in export businesses. Benefits that can be expected in the first by export is the expansion of production volume. It enables to improve product competitiveness, to the purchase cost by expanding the production.
There may be people who want the products manufactured and sold in our country.
Thanks to the people of our predecessors, products made ??in Japan are highly rated in the world even now.
Rather than competing in the limited domestic market only, you can expect the expansion of production significant by exporting.
You can lower the purchase cost of parts and materials if you expand the production volume, and you will also be able to reduce fixed cost per product.
Expanding the production volume will lead to the improvement of productivity, because the skill levels of operators are expected to be improved for production volume increase.
In this way, by production increase by export, it leads to the decline in fixed costs per product, purchasing costs, and improvement productivity, and improvement of cost competitiveness.
Expansion of production volume, has other enexpected effects.
Because plants become busy, the company's reputation becomes better. It becomes easier to gather capital by financing from banks and funds from investers.
As positive reputation spreads, it is also easier to employ excellent human resources.
There still is more benefits to export.
Do not limit your thought domestic market only, think exporting.
Production Volume Expansion for Export
There are a variety of attractiveness and benefits in export businesses. Benefits that can be expected in the first by export is the expansion of production volume. It enables to improve product competitiveness, to the purchase cost by expanding the production.
Improvement of Brand Image
By making the export, the corporate brand image will improve. It is not only the fact that the company exports produces such evaluation, image of people are changing slowly over time.
Improvement of Competitiveness
By the challenge to export, a variety of changes will occur within the company. By the market competition abroad, new know-how are obtained, stamina and competitiveness of the company also have improved.
First Step of Globalization for Company
Exports, can be positioned to be the first step that companies take to globalization. There is a risk that the company depends on the state of one forever, and continuesto work in only one economic region.
Excavation of New Idea
Through the export, the view points of the company increases. It allows company to excavate new ideas by checking rivals, trends, and consumers characteristics in the world.
Tariffs and Barriers of Countries
Country determines a variety of economic policies in response to the situation. For any countries politicians will proceed to free trade when economy is good. On the other hand, protectionists increase under the worse economic situations.
Claim and Quality Issues
The products which had exported could be a claim in the local market. The products may be causing quality problems, it may have to dispose all the products in transit and in stock. Quality issues and claims can have a significant damage to the company.
Business Customs and Trade Friction
Exporting products to foreign countries places a variety of political and social influences. You will be met with anger from many places if you export without considering local business customs. Exporting products makes a serious trade friction in some cases.
Intellectual Property
When you export the goods, you need to keep in mind a lot about intellectual property rights and the handling relating to products exported to the local country. It may occur unexpected troubles when you neglect the intellectual property rights.
Market Competition
Products are exported to foreign countries, are exposed to market competition in overseas. We have to overcome the competition.
Export Procedures
To export, you need to make export documents after having signed a sales contract with the buyer of the destination country. You should know the documents to be submitted and conditions for export approval in advance if you are to export.
Sales in Local
Brand image and sales of products for export will vary greatly depending on by who, and how the products are sold in local. How to manage the sales in the export destination is very important in advancing the export business.
Local Production
Logistics costs to export. Price of exported products are largely determined by the distribution costs. In addition, exports can cause trade friction. If the government of the country were inclined to trade protectionism, export will get stuck whereupon.
Full Utilization of Information
As the spread of Internet, information from foreign countries can be obtained more and more easily. Also for export business, it is important to utilize fully the information.
Ingenuity of Logistics
Since many vendors are entangled in the export, logistics tend to be complex. As transportation cost and margin expenses are piled up, the end-users prices will be considerably much expensive.
