Business Export Plan for the Tiger Electronics
This business export plan is for the tiger electronics, a startup organization in the US which looks forward to exporting electronic products to South Africa, one of the most developed economies in Africa with a high demand of electronic products. Some of these electronic products explained in the paper include mobile phones, laptops, desktop computers, washing machines, and printers. Many considerations are put to successful y come up with this export plan for this organization for example analysis of the situational background, market components, transport and logistics, export budget, implementation of the plan and other addenda such as the market analysis of South Africa. Many facts and business elements are discussed within the paper that will create an understanding of international entrepreneurship which can also be considered by the upcoming startup businesses.
Introduction-200 Many US-based companies have taken advantage of other international market opportunities to export products with high demand to the respective countries. Tiger Company also seeks to use all the available resources to initiate and ensure the successful export of products to South Africa. The organization is also committed to providing high-quality product experience to the customers and also assistance in the target market such as promotion, Distribution, and advertisement. Tiger electronics, have overall goals such as the following: • To enter the South African market and expand. • To successfully compete in the south African market • To build strong long term entrepreneurial and business relationships with the South African market for example retailers, wholesalers and the consumers Some of the short term goals of the organization include the following • To secure an immediate market for its products in the target market.
• To know and understand the market and its dynamics. Some of the products will be refurbished products which will be obtained and sold at lower prices. • Operations Personnel For the success of the export, our business organization will have to consider some significant business operation personnel who will have different roles in the organization. They include: • Operations manager- He will ensure that all the business operations such as go through successfully and smoothly. • Quality control manager who will make sure that the quality of the products in the organization are very high and attractive. • Marketing managers will play a very significant role including market research in South Africa, product advertisement and selling the products. Moreover, we will also require two vehicles which will be transporting the merchandise to their export points.
Furthermore, we will also need machinery in the organization which will be utilized to diagnose and repair the equipment. Financial resources We need excellent economic support and capital to start the business and run it smoothly. Some of the financial resources that we will depend on include bank deposits and savings, we will also consider bank loans to fund our operations and purchases which will be paid back within 12 months of business operations. Our organization can also consider stakeholders and partnership which will help in raising funds to start and run the business. ◦ The level of income in the South African market is very high though there are still high rates of unemployment that can negatively affect the demand for electronic products.
◦ There is also a high number of population or consumers of electronic gods in South Africa. For example, many people are moving into the digital technology which makes them go for very lucrative and high-performance mobile phones such as iPhone and Samsung ◦ Our products are also affordable thus increasing the need of people in the market to purchase them through the wholesalers and retailers in the country. ◦ Moreover, we will use very effective advertisement strategies in the market to persuade the market for electronic products. ◦ Another significant advantage of the South African market which increase the demand for our products is that it has technology integration and improvement in the country in all the sectors. The market segmentation will be divided by various factors.
Market segmentation will significantly help in grouping the customers and understand their potentials through various characteristics such as the following. Geographic segmentation- the customers will be based in urban areas or cities in South Africa such as Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape town. Demographic- we will consider the youths, the employed people and university students to be our leading consumers of the electronic products. Moreover, the products will target people from high and medium socioeconomic classes. Our product will also be of very high quality. Additionally, our organization will consider selling both new and factory refurbished second-hand products to cater to a broad market range. Some essential pricing strategies that we will consider in our organization. We will consider penetration pricing which will significantly help us to penetrate to the South African market and gain a significant market share.
We will also consider the psychological pricing strategy that will ensure the consumers to respond on an emotional basis of the products in the market. The agents and representatives also play a significant role as intermediaries for example by securing product orders for the customer and receive their omissions. Our products will, therefore, consider being distributed effectively in the market making them move quickly in there. • Terms and Conditions Our payment term for the exports will be ash in advance which is less risky for the organization. The importers will be able to pay for the products to be exported to them in advance before they are shipped. The shipping will take a few days. • Moreover, we also look forward to creating good customer value and experience with producing high-quality products which they will appreciate in the products we sell.
• We also aim at improving our customer satisfaction through the sales of our products which will be available in a wide range and high quality. • We also intend to increase customer return rates. Retaining our customers will increase our profitability and competitive advantage in the market. • Our profit forecast, therefore, will be achievable through increased sales resulting in increased profits and reduced losses. The documentation will also increase the efficiencies of exporting the products to South Africa. Our organization will also do a legitimate business with other countries which will be approved by the government and other export control units in the country (Willsher, 2016) • Customs Procedures For the exports to go through, the documents must all be available. The procedures also involve description and confirmation of the export products then assessed the following documents for the products or exports.
Our products will all undergo customs procedures to ensure that they are all valid and ready for exports. We also intend to maintain a good relationship with the US government and the export sectors to ensure a good flow of our products to the South African markets. This will, therefore, protect our interest in the safety of our products in the respective markets. Our consumers will also appreciate our insurance policies and requirements. We will also give warranties on the products to our customers who will be confident to do business with us. • Tariffs & Import Fees South Africa has very good import terms and low taxes on imports from South Africa. This is because it has created trade relationships with the US which counts and contributes to no duties on our products.
ACTIVITY ACTUAL START ACTUAL DURATION PERIODS 1 2 3 4 5 6 7 8 9 10 11 business profiling 1 2 industry analysis 2 5 product identification 3 1 marketability identification 4 3 market analysis 5 4 export marketing and sales analysis 6 4 • Periodic Operational and Management Review We will consider measuring the operations and management success using key performance indicators such as competition of activities with deadline, goal and objective achievements. The results will show the probability of success of the plan upon its implementation. Moreover, implementation of the plan will ensure and will incur positive organizational changes and profitability. Addenda Background Data on Target Market • Basic Market Statistics: Historical and Projected Some South African economic statistics can be considered for the export business which will significantly help in decision making. South Africa has a population growth of about 1. • Background Facts South Africa is a market characterized by many dynamics such as market changes and the formation of a new market.
It earns its income from manufacturing industries in sectors such as agriculture, chemicals metals, clothing, textiles, and information technology. South Africa also has a high population growth rate and also high rates of unemployment which drags the economy behind. Moreover, the country has well-developed infrastructure more so in the urban areas which are also economically developed. South Africa also has numerous resources which it has and utilize them to create economic opportunities and to generate income. • South Africa has also been experienced a positive and robust economic growth for the past years which is still aimed at increasing giving it a more competitive advantage. • Through its able and concerned government, South Africa is getting into numerous trade agreements with other countries and also has a great need for microeconomics reforms.
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