Market research is one of the elements to consider to compete in other countries. According to the National Institute of Statistics and Geography, at least seven out of 10 companies fail before the first two years of life due to not having carried out a good market study, and this is not different in exporting companies.

With a market study, companies obtain all the information necessary to create a business plan. In this way, they know the consumption habits of their consumers, clearly define their competition and obtain the necessary information to design a strategy to market their product or service, explains the National Institute of Social Economy (INAES).

INAES highlights the four axes that a good market study must fulfill:

  • Offer: an analysis of those who provide the same service or product in the destination country.
  • Demand: be clear about the number of potential customers, as well as knowing the characteristics that users are looking for.
  • Prices: establish the price according to those that already exist in the market to which the product or service is oriented.
  • Marketing: consists of establishing how to send or transport the product to the consumer with the benefits of time and place.

This type of analysis is a common practice among large companies. However, for SMEs it is difficult to have this type of analysis due to two factors:

  1. Lack of statistical knowledge and skills to develop a research study. Also, because there is no clear understanding of how to use that information and translate it into benefits for the SME.
  2. The cost of hiring the services of companies that provide market research, almost unattainable for SMEs.

SMEs, as a first exercise, can perform the following actions:

  • Obtain data on the growth and investment opportunities that exist in the sector or industry in which you are going to compete.
  • Determine the limits of the market or the physical limits to sell a product.
  • Analyzing the local competition will help to have a clear picture of the possible threats, opportunities, weaknesses and strengths of the same.
  • Trace strategies of the operations and possible routes to transfer the product from the place of origin to the point of sale.

Finally, the exporter must not forget that without the information provided by the market study, he will not be able to have a good business plan, an essential element to attract new clients, partners or request some type of financing.

Benefits for exporting SMEs within value chains

Global value chains allow a product to be designed in one country while its parts are manufactured and assembled elsewhere, as 80% of products are produced internationally, according to the World Organization. of Commerce (WTO). Therefore, exporting SMEs find benefits by integrating into supply chains.

With global chains, SMEs increase their productivity thanks to the adoption of new technologies and the ease of approaching new trends in trade and financing, details the Economic Commission for Latin America and the Caribbean (ECLAC).  Being part of these international chains allows them to spread innovations and reach new markets.

An SME can participate in global value chains at any level. From the simplest, for example, a maquila that offers an advantage in production costs but can be eventually equaled by other markets, or at higher levels where it creates greater dependency on the part of the client due to the presence of a greater added value that can hardly be replaced by another provider.

Thus, SMEs have the facility to access diversified markets, therefore, to participate in global value chains that are a crucial axis to increase their competitiveness. ECLAC highlights these advantages for small and medium-sized companies:

  • Access to new markets, reducing dependence on the local market
  • Productivity and efficiency are improved as a consequence of the diffusion of technology
  • Greater access to technology enables modernization and acquisition of new capabilities
  • The adoption of international standards which can reduce the productivity gaps between large and small companies

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