A key factor in successfully entering a foreign market is a well-developed export strategy, as well as exploring support options from public institutions in that country, which, in addition to providing various financial instruments, can help you establish local contacts. This is precisely what we’ll be covering in today’s installment of the series “I Want to Be an Exporter,” which HN is producing in collaboration with Eximbanka.
Export Strategy
Setting export goals and establishing a clear strategy are among the most important steps on your path to successful exporting. “The export strategy must be integrated into the company’s overall business plan so that domestic activities and exports complement each other and no conflicts of priority arise,” Pavol Adamka of Eximbanka told HN.
According to him, it is important to clearly define export goals, which should be measurable. These include, for example, sales volume in the market, the share of exports in total revenue, or the export margin. It is also advisable to set priorities, smooth out seasonal fluctuations, reduce fixed costs, optimize the utilization of production capacity, and so on. The export plan is thus derived from the overall strategy and should include objectives, a market entry strategy, financial management, and a pricing strategy.
Support for Institutions
A very important step is to explore the options for export support offered by public institutions. Several entities can assist in this process. One of them is the Slovak Investment and Trade Development Agency (SARIO), which provides comprehensive information, consulting, assistance, and training services to support the exports of Slovak companies and their participation in international cooperation. It focuses on facilitating business opportunities, presenting companies at trade fairs, and providing consulting services through seminars and webinars. SARIO also regularly organizes or helps organize business trips to various countries around the world.
Another key player in this area is the Ministry of Foreign and European Affairs of the Slovak Republic, which has been focusing on the development of economic diplomacy for several years. It is strengthening the role of economic diplomats at Slovak diplomatic missions around the world. This strategy also includes the opening of new embassies in countries that Slovak exports have not yet fully tapped, but whose rapid economic growth and population boom hold great potential for the future—such as Algeria, the Philippines, Malaysia, and Tanzania.
Africa and Asia
The Ministry provides interested parties with contact information for economic diplomats abroad who can help Slovak companies establish business ties in a specific country or recommend the best way to enter that market. Company representatives are also often part of the delegation led by Foreign Minister Juraj Blanár or Prime Minister Robert Fico during their foreign visits.
During his June trip to Kenya and Tanzania, Juraj Blanár was accompanied by a record-breaking 35-member business delegation composed of company representatives from sectors such as energy security and renewable energy sources. Eximbanka CEO Rastislav Podhorec was also part of this delegation. The business leaders participated in the Slovak-Kenyan Trade and Development Forum in Nairobi and the Slovak-Tanzanian Business Forum in Dar es Salaam. They used their visit to East Africa to establish contacts and hold B2B meetings with Kenyan and Tanzanian companies.
Eximbanka and the OECD
Eximbanka also plays a significant role in supporting exports by offering a wide range of export-related financial products. These primarily include credit insurance, financing, and guarantees, which enable Slovak companies to safely expand into foreign markets and minimize export risks. Eximbanka also regularly organizes events called the Export Club, where individual regions of the world are presented. Recently, countries in Southeast and Central Asia as well as Sub-Saharan Africa have had the opportunity to introduce themselves to Slovak companies through their ambassadors and other diplomatic representatives.
Among the international organizations that support exports by Slovak companies, the Organization for Economic Cooperation and Development (OECD) is worth mentioning. The OECD provides companies with statistics, studies, and analyses that can assist them in making decisions about entering specific foreign markets.
Author Pavel Novotný
Source: Hospodárske noviny