Exportation Plan

Vision

A forward

Mission

A statement of a company's fundamental purpose, explaining why it exists in the present [1].

Cost Leadership Strategy

A Porter’s Generic Strategy focusing on cost minimization and efficiency to offer competitive prices and create entry barriers [2].

Differentiation Strategy

A Porter’s Generic Strategy focusing on unique product attributes to build brand loyalty and reduce price sensitivity [2].

Niche (Focus) Strategy

Targeting a specific market segment through either cost leadership or differentiation based on specialized expertise [2].

Competitive Advantage

The unique mix of attributes and execution, such as innovation or brand strength, that makes an organization more successful than rivals [3].

Cash Conversion Cycle (CCC)

A metric measuring liquidity and operational efficiency calculated as DIO + DSO

Days Inventory Outstanding (DIO)

The average time required to convert raw materials into finished goods and then into sales [5].

Days Sales Outstanding (DSO)

The average number of days it takes a company to collect payment after a sale is made [5].

Days Payable Outstanding (DPO)

The average duration a company takes to pay its suppliers and creditors [4].

Bullwhip Effect

A phenomenon where small fluctuations in consumer demand cause increasingly larger swings in inventory requirements up the supply chain [6].

Assortment Breadth

The variety or number of different product lines a company carries to capture diverse segments [7].

Assortment Depth

The number of variations, such as SKUs, colors, or sizes, offered within a specific product line [7].

Product Standardization

Selling the exact same product globally to achieve economies of scale and a consistent brand image [8].

Product Adaptation

Modifying product features, packaging, or labeling to meet local needs, tastes, or legal requirements [8].

Glocalization

The strategy of "thinking global, acting local" by standardizing core technology while adapting marketing or flavors to local cultures [9].

Mandatory Adaptation

Product changes required by the destination country's laws or technical standards, such as voltage or labeling requirements [10].

Discretionary Adaptation

Optional product modifications made to increase local consumer appeal, such as adjusting spiciness levels [10].

Core vs. Augmented Product

The core is the tangible good (e.g., a car), while the augmented product includes intangibles like warranties and service commitments [11].

Exporting

The entry strategy with the lowest involvement and cost, using a distribution channel to link producers with international users [12].

Sales Agent

An intermediary who negotiates transactions but does not take ownership of the goods; usually paid via commission [13].

Distributor

A wholesale intermediary that takes ownership of products and supplies them to retailers on a selective basis [14].

Licensing

An entry strategy where a licensor gives a licensee permission to use intellectual property or brands in exchange for a fee [13].

Franchising

A form of licensing where the franchisor provides a standard business model and brand for the licensee to operate [13, 15].

Joint Venture (JV)

A market entry mode involving shared ownership, risks, and costs with a local partner to gain market expertise [15].

Wholly Owned Subsidiary

A physical presence abroad where the parent company has 100% control but bears all costs and risks [16].

Contract Manufacturing

Outsourcing the production of goods to a local firm while maintaining ownership of materials and final products [16].

Integrated Marketing Communications (IMC)

A unified approach coordinating all promotional tools to deliver a consistent brand voice across global touchpoints [17].

Market Skimming

Setting a high initial price to maximize profit from early adopters before lowering it as the market matures [18].

Penetration Pricing

Setting a low initial price to capture significant market share quickly and establish a strong customer base [19].

Companion (Captive) Pricing

Selling a core product at a low margin to lock customers into buying high

Target Costing

A strategy where the maximum allowable cost is calculated by subtracting the required profit margin from the market

Rigid Cost

Plus Pricing

Flexible Cost

Plus Pricing

Price Escalation Trap

A risk of rigid pricing where including full domestic overhead makes the export price 30–60% higher than local competitors [24].

The Price Waterfall

The accumulation of added costs like freight and duties that can multiply a factory price 2–4x by the time it reaches consumers [25].

Incrementables

Specific added export costs such as special packaging, international freight, customs documentation, and insurance [26].

Anti

Dumping

Incoterms 2020

Rules determining the point where risk, costs, and responsibilities for functional activities shift from seller to buyer [28].

EXW (Ex Works)

The seller’s minimum obligation; risk and costs transfer to the buyer at the seller's factory door [29, 30].

FOB (Free On Board)

The seller delivers goods on board the vessel; risk transfers at the ship's rail, but the buyer pays international freight [31, 32].

CIF (Cost, Insurance, and Freight)

The seller pays for freight and insurance to the destination port, but risk transfers once goods are on the vessel [32, 33].

DDP (Delivered Duty Paid)

The seller bears all risks and costs, including import duties and taxes, until the goods reach the buyer's destination [29, 32].

Cash in Advance

The payment method with the lowest risk for the exporter, as payment is received before goods are shipped [34].

Letter of Credit (L/C)

A bank guarantee where the buyer's bank commits to paying the exporter upon presentation of shipping documents [35].

Confirmed Letter of Credit

An L/C that adds a second guarantee from the exporter's local bank, protecting against the failure of the buyer's bank [36].

Documents Against Payment (D/P)

A collection method where the importer must pay the bank immediately to receive documents needed for customs [37].

Documents Against Acceptance (D/A)

A collection method where the importer signs a promise to pay later (time draft) to receive shipping documents [37].

Open Account

A method where goods are shipped first and paid 30–90 days later; it is highly competitive but carries the highest credit risk [38].

Consignment

An arrangement where the exporter is only paid after the foreign distributor sells the goods to the end consumer [39].

B2C vs. B2B Retailing

B2C is emotional and high

Omnichannel Retailer

A business providing a seamless customer journey across social media, websites, apps, and physical stores [41].